N221bn Disbursed To Street Contractors, Says Works Ministry

The Federal Ministry of Works and Housing has revealed how a lot had been disbursed to street contractors.

The FG says N221bn has been disbursed to contractors as prices for the development of 71 street initiatives accomplished in numerous components of the nation beneath the 2021 SUKUK bond funds.

This was because it refuted allegations by some aggrieved contractors in a web-based publication that funds allotted to initiatives within the 2022 SUKUK fund had been being delayed and positioned into financial institution accounts “To embezzle accrued curiosity.”

The rebuttal was issued in an announcement titled, “For The Information. Re: Allegation On: “N130bn 2022 SUKUK Fund: Street Contractors Petition Efcc Over Non-payment Of Authorized Funds Allotted To Them By Ministry Of Works Employees” and signed by the Director overseeing the workplace of Everlasting Secretary, Folorunsho Esan, on Wednesday.

The ministry insisted that it accomplished the disbursement for the cost of executed contracts within the 2021 SUKUK funding including that the cost led to April 2022 and a complete of N221bn was paid.

Esan pressured that funds for each years (2021 and 2022) couldn’t be made concurrently as a matter of precept.

Describing the allegations as a blatant misrepresentation of info and a calculated try to smear the title of the Ministry, the Director stated it’s unfounded to think about that any portion of the 2022 SUKUK Fund is warehoused in any financial institution with the expectation of yielding curiosity for any pecuniary advantages to officers within the ministry.

As some extent of clarification, he famous that the ministry has been utilizing the Sukuk mannequin for challenge financing since 2017 and at no time held funds for challenge funds.

He additionally identified that “SUKUK Funds are domiciled within the Central Financial institution of Nigeria (CBN) and are solely launched to the Ministry for cost after the mandatory processes and approvals are obtained.”

The assertion learn, “The eye of the Federal Ministry of Works & Housing has been drawn to allegations through a web-based publication wrongly accusing workers of the Federal Ministry of Works and Housing of refusing to disburse funds allotted for initiatives within the 2022 SUKUK Fund to contractors.

“For the information, this can be a blatant misrepresentation of info and a calculated try to smear the title of the Ministry. In response to the operational tips for Sukuk initiatives, funds are made to contractors inside twenty-four hours of the funds hitting the accounts of the ministry.

“Recall that the Debt Administration Workplace authorised the 2022 Sovereign SUKUK Funding of N110.00 billion for the execution of sixty-three (63No.) initiatives throughout the nation with a symbolic presentation on the ministry of finance.

“However previous to the presentation of the 2022 SUKUK cheque, the Ministry was executing the 2021 SUKUK Funding within the sum of N210.565 billion for the development of seventy-one (71No.) initiatives within the Federal Ministry of Works & Housing and N10.435 billion for the execution of 5 (5No.) freeway initiatives by the Federal Ministry of Niger Delta Affairs which had been transferred to the Works and Housing Ministry.

“You will need to be aware that the disbursement of the 2022 Sukuk couldn’t be run concurrently with that of the 2021 Sukuk as a matter of precept.”

In response to the assertion, on completion of the 2022 verification course of in early Could 2023 and consistent with the dedication of the ministry for cost of works executed in keeping with the authorised milestones, the primary (1st)Tranche Drawdown within the sum of N19.605 billion was forwarded to DMO whereas subsequent tranches could be forwarded to the DMO because the contractors execute the initiatives consistent with the authorised milestones till the N130bn is absolutely accessed.

The ministry urged the general public to all the time cross-check their info earlier than going to the media as a way to keep away from unsubstantiated allegations and avoidable waste of taxpayers’ cash for energies that needs to be channeled into extra productive ventures.