The House of Representatives has launched an investigation into the procurement process in the 700km Lagos-Calabar Coastal Highway.
This followed a motion of urgent public importance by Austin Achado (APC-Benue) during plenary in Abuja on Thursday, May 9, 2024.
Presenting the motion, the lawmaker queried the procurement process that led to the award of the contract to Hitech Road Construction Company.
The Federal Government had awarded the construction of the Lagos-Calabar Coastal Highway to Hitech Road Construction Company.
According to Minister of Works David Umahi, the project is aimed at enhancing connectivity across the nation.
The lawmaker, however, said the procurement strategy might have violated the Public Procurement Act 2007, section 40(2).
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Achado added that this required that where a procuring authority adopts Restrictive Tendering Approach, it should be on the basis that the said goods and services are available.
This, according to him, is only from a limited number of suppliers and contractors and as such, tenders shall be invited from all such contractors who could provide such goods and services
He said the procurement strategy adopted by the Federal Ministry of Works for the award of the contract violated the infrastructure concession.
The lawmaker further stated that the contingent liabilities accruing to the Federal Government on the project violated the Debt Management Office (Establishment) Act of 2023.
Adopting the motion, the House called on the Minister of Works, the Minister of Finance, and the Attorney-General of the Federation and Minister of Justice to ensure that the National Assembly were in the know.
The lawmakers said all guarantees and credit enhancement instruments for the Lagos-Calabar Coastal Road Project should be sent to the National Assembly for approval
The lawmakers added that an ad-hoc committee should be set up to investigate the procurement process of the contract for the expressway and report to the House within four weeks.
The Lagos-Calabar Coastal Highway spans nine states with two spurs leading to the Northern States.
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