Railway contracts: Reps threaten arrest of 14 firms

The Ad-Hoc Committee of the House of Representatives investigating railway contracts awarded between 2010 and 2014 has threatened to serve arrest warrants on 14 firms.

The committee said the firms handled some of the rail projects under investigation, but had shunned many invitations to appear before lawmakers to answer questions.

Four of the firms were said to have handled projects worth N41.2bn.

The Chairman of the committee, Mr. Johnson Agbonayinma, released the names of the firms at the National Assembly in Abuja on Thursday.

The three are Constain West Africa PLC “in connection with the N12.2bn contract for rehabilitation of Jebba to Kano narrow gauge line”; Eser Nigeria Contracting Company Limited “in connection with N19bn contract for the rehabilitation of Port-Harcourt to Makurdi narrow gauge line”; and Ansaldo South Africa “in connection with the N10bn contract to upgrade the signalling and telecoms system in the narrow gauge line.”

Others named by Agbonayinma included Gear Holdinds, A3 and Wireless Limited, Eser West Africa Limited, Eser Contracting and Industry Compnay Inc and Ansaldo-A3&O Limited.

“This is the first wave of warrants that will be invoked and the next group of companies will be processed as soon as possible,” Agbonayinma stated.

The lawmaker added that the companies had no known addresses, while all efforts to bring them before the committee through publications and summons had failed to yield results.

Asked how the warrants would be executed since the firms could not be traced, Agbonayinma replied that the Nigerian Railway Corporation, which awarded the contracts, “must produce them to the committee.”

Meanwhile, in its plenary, the House resolved to investigate alleged “massive corrupt practices” by Manitoba International, the management firm contracted by the Federal Government to manage the Transmission Company of Nigeria.

Acting on a motion sponsored by Mr. Gaza Jonathan, the House observed several breaches of the management contract.

For example, it noted that while the contract included emoluments for 15 expatriates, the House said only eight were hired by the firm for TCN.

However, it said the Managing Director of Manitoba, “a public corporation, draws a monthly salary of N35,500,000, while other expatriates and the MD, ISO, earn a monthly income of N20,500,000 and N19,100,000 respectively.”

The House also faulted the exchange rate being used by the firm, alleging that since 2012, it had been using a conversation rate of N395 to the US Dollar.

The motion reads further, “As a result of the unlawful exchange rate being used by Manitoba Hydro International Nigeria Limited in the last 13 quarters, the transmission company of Nigeria has fraudulently and illegally lost N3.7bn over and above its entitlement under the management contract.”

The Committees on Power and Public Procurement were mandated to conduct the investigation within four weeks.