The Oyo State House of Assembly has directed its Committee on Agriculture and Rural Development to investigate the prolonged delay in constructing a 10,000-metric-ton silo at Awe Road, Oyo.
The Speaker, Rt. Honorable Adebo Ogundoyin gave the probe directive during this Tuesday’s plenary sitting of the House after receiving and deliberating on a committee report.
The project, awarded to Messrs Rahvet Int’l Ltd in 2014, has remained incomplete despite substantial payments to the contractor.
Westernmirror.com.ng reports that the contract, valued at ₦1,294,076,000, was initially scheduled for completion within 10 months. However, despite the contractor receiving ₦1,277,126,745, work on the silo remains unfinished.
According to the committee report, the contractor stated that the delay resulted from a breach of agreement by their banker, who allegedly failed to remit necessary funds to a Chinese company responsible for manufacturing the silo components.
The contractor further allegedly stated that the matter is currently being litigated in court.
In a bid to resolve the issue, Governor Seyi Makinde opted for an out-of-court settlement and approved a contract variation of ₦350,000,000 in November 2019. The new completion deadline was extended to May 22, 2021.
Despite these efforts, the contractor reported that essential components for the silo had not arrived, and as of the committee’s last visit, no significant work had commenced.
Speaking on the matter, the Speaker of the Oyo State House of Assembly, Rt. Hon. Adebo Ogundoyin, emphasized the need for a thorough probe.
He stated that the House Committee on Agriculture would investigate the causes of the delay and the alleged breach of contract.
“The investigation is aimed at ensuring the project is completed efficiently and effectively, serving the best interests of the people of Oyo State,” Ogundoyin said.
The committee is expected to question all parties involved, including the contractor, financial institutions, and relevant government agencies, to determine the next steps in ensuring the project’s completion.
The House adjourned its plenary sitting till next week Tuesday.