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Tuesday, January 7, 2025

Road Contract: Abia State Governor, Otti Faces Allegations Of Fraud

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Abia resident, Ako Obioma who is the Chairman and Chief Executive of Worldwide Environmental Technologies Limited, has accused the Abia State Government of injustice and breach of contract regarding two significant road projects: the Umuopara Ring Road and IBB Way (Dozie Way). Speaking at a press briefing in Umuahia, Sir Obioma detailed a series of grievances, including unpaid debts, contract renegotiations, and alleged misrepresentation by the government.

According to Obioma, his company was invited in 2007 by then-Governor Theodore Orji to assist with infrastructure development in Abia State. Over the years, Worldwide Environmental Technologies Limited undertook several projects without receiving mobilization payments, accruing a substantial debt from the government.

In 2016, the company sought legal redress to recover funds, leading to an arbitration process. The arbitration panel awarded a sum of ₦2.7 billion to the company in 2022, which was upheld by the Abia State High Court in May 2024. Despite this, Sir Obioma alleges that the government has failed to honor the court judgment, particularly concerning the ₦581 million owed for the IBB Way project.

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Controversies Surrounding Umuopara Ring Road
The Umuopara Ring Road, initially flagged off by the previous administration, has also been a contentious issue. Sir Obioma disclosed that his company had completed over 50% of the project before suspending work in 2022 due to unpaid interim certificates amounting to ₦279 million.

However, he expressed shock upon learning that the current administration had re-advertised the road project for new contractors, even as his company still holds legal claims over it. “The government has misrepresented the facts, claiming the road spans 6.9 kilometers when only a 3-kilometer section remains unfinished,” he stated.

Sir Obioma also criticized Governor Alex Otti’s decision to flag off the project from Umunwanwa, the endpoint of the road, rather than resuming work from where his company had stopped. He called this move “deceptive” and an attempt to undermine his company’s efforts.

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Allegations Over IBB Way
Regarding the IBB Way (Dozie Way), Sir Obioma accused the government of double standards. The road, which his company completed in 2016, remains unpaid for despite arbitration and court rulings. Meanwhile, the current administration recently spent ₦750 million on asphalt overlay for a portion of the road.

“It is disheartening that the government is willing to spend such a huge amount on an overlay while refusing to pay the ₦581 million certified for the original construction,” Sir Obioma remarked.

Call for Transparency
In his concluding remarks, Sir Obioma urged the state government to act with “trust and good conscience” in handling contracts. While he expressed willingness to engage in dialogue, he warned that he would seek further legal action if necessary.

The Abia State Government has yet to respond to these allegations as of the time of this report.

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