FG gives 7-day ultimatum to new Julius Berger MD to accept, reject reviewed contract sum or face termination

By AKOR SYLVESTER-Abuja

The Federal government has given the new Managing Director of Julius Berger construction company 7-day ultimatum to accept or reject the approved reviewed contract sum for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination.

The Minister of Works, Engr David Umahi who gave the charge yesterday at the courtesy visit of the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, who was accompanied by the outgoing Managing Director, Dr. Lars Richter in Abuja, said the federal government can not be held to ransom by the desire for unrealistic pricing and augmentation by contractors.

Umahi said, “This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months. I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”

He further called on Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 (seven hundred and forty billion, seven hundred and ninety-seven million, two hundred and four thousand, seven hundred and thirteen naira, twenty five kobo for the completion of the project

He lamented that the delay in mobilizing to the site despite the approved funds by the Federal Executive Council is causing untold hardship to the road users, saying the Federal Government is at the receiving end of the situation.

According to him, “So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”

The Minster expressed dismay that Julius Berger Plc, which he said has had years of patronage by Federal Government and sub-national governments, “is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges”.

While welcoming the new Managing Director of Julius Berger Plc, the Minister reiterated the need for construction companies working with the Federal Ministry of Works to prepare to make sacrifices in terms of value for money and realistic contract pricing, so as to encourage the much needed road infrastructure revolution for the nation’s economic transformation which is a cardinal agenda of the Renewed Hope administration of the President of the Federal Republic of Nigeria

He said, “already a number of Berger projects have been terminated because the site has been abandoned. And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We can not allow that to be happening.”

Speaking, the new Managing Director, Pier Lubasch, promised to revert as soon as possible on the issues sought to be addressed and hoped that consensus would be reached for the project to take off without further delay. The outgoing Managing Director, however, noted that the essence of the courtesy call to the Minister of Works was to introduce the new Managing Director of the company.