Date: 2014-06-03

The Kwara State Chapter of the Peoples Democratic Party has accused Governor Ahmed of inflating the contract for the renovation and equipping of 5 general hospitals by a staggering N2.7 billion.

The party made the claim in a press statement signed by Chief Rex Olawoye sent to The Herald via email.

The statement reads, “The Kwara State chapter of the Peoples Democratic Party (PDP) hereby alerts the general public that the Kwara State Government inflated the cost of the reconstruction, remodelling and equipment of five general hospitals in Kaiama, Ilorin, Offa, Omu-Aran and Share by a staggering sum of N2.7billion.

“Our party recalls that the Kwara State Governor had in his budget speech delivered on the floor of the Kwara State House of Assembly on Monday, December 19th, 2011 declared that the contract for the remodelling, renovation and equipment of the five general hospitals would cost the state the sum of N1.3billion.

Quote: …a sum of One billion, three hundred million Naira has been set aside for the rehabilitation of five general hospitals across the state.”

“And by way of further corroboration, the government had on the 5th February, 2012, through its Commissioner for Planning and Economic Development, Chief Tunde Adeoti and Senior Special Assistant to the Governor on Investment Policy and Strategies, Mr. Yomi Ogunsola, that the remodeling, renovation and equipment of the five hospitals would cost the state N1.3billion. Both Chief Adeoti and Ogunsola gave this explanation at a press briefing, which held at the Government House, Ilorin, as parts of the government’s desperate efforts to justify the acquisition of the N10billion loan from the Guarantee Trust Bank (GTB).

Quote: “…the five general hospitals in Offa, Omu-Aran, Share, Ilorin and Kaiama would be renovated at a cost of N1.3 billion from the loan. Also, the Ilorin metropolis water reticulation would also gulp the sum of N1 billion, while another sum of N3 billion was allocated to Kwara Holding Company to manage 18 companies on behalf of the government.”

“But we are alarmed that instead of sticking to the widely publicized and budgeted N1.3billion price tag, the Kwara State Governor, Mr. Abdulfatah Ahmed, yesterday, during the commissioning of one of the hospitals in Offa Local Government Area, gave an impossible sum of N3.7billion as the ‘actual’ cost of the said renovation. In mathematical terms, this is almost 200% price variation between the original figure and the new figure being brandished by the governor!

“This then begs the questions: What has so drastically changed in the economy of Nigeria between February 2012 and May, 2014 that could have warranted such an unacceptable contract cost variation? Assuming, without slightly conceding that the government and its contractors were constrained to vary the contract sums for any reason whatsoever, why did the APC-led government fail to capture this much in either the subsequent 2013 budget or a supplementary budget? Does this inflationary abracadabra explain why the government did not subject the award of the contract to open tenders and competitive bidding as required by laws? Is this new regime of heist and recklessness indicative of the assimilation of the legendary culture of waste and contract inflation that virtually all APC-controlled states are reputed for as was the case of the controversial Makola bridge in Ibadan?

“The Kwara PDP takes a serious exception to this open violation of all lawful contracting procedures, and we join the Kwara state people in demanding an immediate explanation for this clear rape of the state meager resources by a government that only mouths anti-corruption but does not match it in action.

“If however the government fails, neglects or refuses to give timely answer to these queries within seven days from now, our party, on behalf of the good people of Kwara state, may be left with no further options than to drag the APC-led government to the Economic and Financial Crimes Commission (EFCC) for proper investigations and criminal prosecution.”