Reps investigate N6.8bn abandoned dam in Ife

The House of Representatives has begun an investigation into a N6.8bn contract the Federal Government awarded in 2005 for the construction of a dam to provide potable water for residents of Ile-Ife in Osun State.


A copy of the House resolution on the project, which Saturday PUNCH obtained on Friday, indicated that the contract was awarded to Reynolds Construction Company Ltd. The House said the firm was paid N2.033bn of the total contract sum.



The resolution followed a motion moved by a member of the House, Mr. Albert Adeogun, who observed that the contractor abandoned the site in 2009 because the government “did not sustain the funding of the project.” Adeogun informed the House that the N2.033bn represented 35 per cent of the contract sum, leaving a balance of N4.493bn.

The House expressed concern that the money paid so far could become a waste if the government does not take immediate action to ensure that the contractor returns to the site.

Part of the motion read, “The House is aware that when functional, the dam will not only provide potable water, but will also support irrigation, which will boost food production, generate employment and enhance food security.

“The House is concerned that the N2.033bn already paid for the project may become a colossal waste if urgent action is not taken to complete the dam project.” The House directed its Committee on Water Resources to look into the matter by liaising with the Federal Ministry of Water Resources to “ensure that priority attention is given to the completion of the Ile-Ife dam in order to salvage the over N2bn public funds already incurred on the project.”

In another resolution, the House also sought to probe the alleged fraud in the N117bn rice import quota.

The House noted that there were abuses of the policy by importers, who breached the rules of engagement.

In its resolution on a motion by Mr. Sergius Ogun, the House noted, “One of the 26 beneficiaries, Umza International Farms Ltd, received import quota of 36,000 metric tonnes under the existing miller allocation and 49,000 metric tonnes under investor allocation.

“Apart from Umza Farm Ltd, Dangote and Golden Penny companies do not have existing mills, but got 115,204 metric tonnes and 91,887 metric tonnes respectively, while Micap Rice, with a very small scale mill of between 15,000 and 20,000 metric tonnes, got 82,897 metric tonnes.”

The House asked its Committee on Agricultural Production Services to ascertain the level of compliance with the import quota scheme by the participating firms.

 Copyright PUNCH.