A Chinese company, Hebbelyixin Fastener Company Limited, alongside a consortium of companies in Nigeria, Duluidas Nigeria Limited, Duliz Dredging and Construction Limited, and Consortium of Duluidas Nigeria Limited, have filed a lawsuit against Nigeria’s Minister of Transportation, Rotimi Amaechi and Attorney General of the Federation (AGF) Abubakar Malami (SAN), over alleged rail contract inflation scam.
In the case filed recently at the Federal High Court in Abuja, the plaintiffs alleged that Amaechi and Malami awarded a 190km rail line construction worth N91.5 billion to a fellow Chinese firm, China Civil Engineering Construction Company (CCECC), without following due process.
In the suit FHC/ABJ/CS/1426/2021, which listed the CCECC as co-defendants, the plaintiffs prayed for an injunction restraining all the defendants from “awarding or purporting to award the contract to the CCECC firm or any third party on the basis of the allegedly flawed bidding process.”
In the writ of summons issued by their lead counsel, James Okoh, the plaintiffs are asking the Court to cancel the “No Objection letter issued by the Bureau of Public Procurement (BPP) in favour of CCECC for the award of the N91.5 billion rail line contract, in breach of procurement laws, and re-issue same in their favour.”
According to the plaintiffs, the disputed contract was to reconstruct a narrow-gauge track from Minna, in Niger State to Baro, with an extension to Baro River Port, expected to be completed in 36 months.
The plaintiffs claimed to have bidded successfully for the same contract and quoted a smaller amount of N76.7 billion for the project’s execution , but were shortchanged by the two ministers in favour of CCECC at the inflated rate.
Also, the writ of summons alleged that on May 19, 2021, Amaechi wrote the Bureau of Public Procurement (BPP), for a certificate of no objection in favour of CCECC in the sum of N91, 580, 101, 710 and that by a letter of June 9, 2021, the BPP declined the Minister’s request on the claim that such certificate can only be issued to them based on their quotation of N76.7b to execute the job.
It read: Along the line, other bidding processes were manipulated and compromised, leading to receipt of an acceptance letter by the NRC from CCECC for the Minister to be presented to the Federal Executive Council (FEC), for the purpose of the award of the contract.”
The plaintiffs prayed the court to declare that the action of the Ministers and their agents in interfering with due process of the bid process for the contract damaged the integrity of the process of law.
It added: “In the alternative, we are seeking an order setting aside any purported award on the basis of the alleged flawed and heavily compromised bid process by the Nigeria Railway Corporation (NRC) with concurrence of other defendants
“We are also seeking an order restraining the Minister of Transportation or any of his agents from presenting the CCECC to Federal Executive Council (FEC) for the purpose of awarding the contract.”
After hearing the plaintiffs’ presentation, the presiding judge of the court, Justice Ahmed Ramat Mohammed, fixed February 17, 2022, for hearing of the matter.
