Obaseki Left N200bn in Outstanding Contract Debts, Says Assets Verification Committee

The administration of former Governor Godwin Obaseki has left a debt burden of approximately N200 billion in unpaid commitments to contractors, who were only given mobilisation fees for various projects in Edo State. This revelation was made by Dr. Ernest Afolabi-Umakhihe, Chairman of the Assets Verification Committee set up to examine the activities of the previous administration, during a press conference in Benin City.

Afolabi-Umakhihe acknowledged that, despite the significant debt, the new Okpebholo-led administration must prioritize road infrastructure projects, especially during the dry season. He emphasized that the government cannot ignore the pressing need for good road networks for the people of Edo State.

“There are substantial outstanding commitments regarding road infrastructure. No matter how unpleasant some of our findings are, the government must act during this dry season to make meaningful progress on road construction,” Afolabi-Umakhihe stated.

He explained that many of the ongoing projects, awarded in 2024, have left the new administration with a significant burden, amounting to around N200 billion. This debt reflects unpaid balances to contractors who had only received mobilisation fees, with some contractors even claiming that part of these fees were later returned to government officials.

The Chairman also criticized the lack of adherence to the Edo State Public Procurement Law in the awarding of major contracts, resulting in dubious contract variations. In some cases, the variations exceeded the original contract sums.

Afolabi-Umakhihe further highlighted issues with the Radisson Hotel project, which saw Edo State’s ownership reduced to just 20% after the immediate past administration left office. The state had originally invested over N17.5 billion from the stock market, with an additional N2 billion paid for land acquisition.

Regarding the Museum of West African Arts (MOWAA), Afolabi-Umakhihe noted that the project, managed as an independent private trust on government land, had minimal oversight from the Ministry of Arts, Culture, and Tourism. Despite a state contribution of N3.8 billion, Edo State holds no equity stake in the project.

Another concern was the over N5 billion commitment for cybersecurity software licenses for the EdoGov platform from 2023 to 2025, of which N1.7 billion has already been paid by the previous administration.

The committee is set to resume its work on January 6, 2025, to further investigate critical sectors of the state, including housing, education (notably SUBEB and EDOBEST), agriculture, health, and environmental projects. Other areas of concern include grants from donor agencies, the Edo Oil Palm Project, the Edo State Oil and Gas Producing Areas Development Commission (EDSOGPADEC), MOWAA, Edo Electrification Agency, BUA Cement shares, the Modular Refinery, and more.

Afolabi-Umakhihe assured that the committee’s continued investigations would seek to uncover and address financial irregularities across these sectors.