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Africa Housing News > Blog > Construction News > Firms Seek Reversal of Construction Contract Awarded to Chinese Firm
Firms seek Reversal of Construction Contract Awarded to Chinese Firm
Construction News

Firms Seek Reversal of Construction Contract Awarded to Chinese Firm

Fesadeb
Last updated: 2022/02/21 at 12:56 PM
Fesadeb Published February 21, 2022
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Firms seek Reversal of Construction Contract Awarded to Chinese Firm
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Three Nigerian companies have asked a Federal High Court in Abuja to reverse a N80.6bn rail line construction contract awarded to a Chinese firm by the Federal Government while a case challenging legality of the process is still on.

The companies are Duluidas Nigeria Limited, Duliz Dredging and Construction Limited and a consortium of Duluidas Nigeria Limited, Duliz Dredging and Construction Limited and Hebbelyixin Fastener Company Limited, China.

The Minister of Transportation, Rotimi Amaechi, and the Minister of Justice and Attorney-General of the Federation, Abubakar Malami (SAN), were alleged to have awarded the contract despite a subsisting court action against them and two others.

A copy of the court processes was made available to Journalists on Sunday.

Amaechi, Malami, the Federal Ministry of Transportation and China Civil Engineering Construction Company were listed as defendants in the suit over the legality of processes that led to the award of the 190km rail line construction work.

The request for an order of the court to cancel the contract was contained in a 13-paragraph further affidavit in support of a motion for interlocutory injunction against the four defendants in the suit.

The affidavit was deposed to by a lawyer, Benedict Onyolu, against the contract award in the suit marked FHC/ABJ/CS/1426/2021 in which the plaintiffs were demanding the reversal of the contract on the grounds that the action of Amaechi and Malami constituted an affront and disrespect to court authority.

Besides the request for the cancellation of the contract, the plaintiffs also asked the court to sanction Amaechi and Malami to serve as a deterrent to other agents of the government engaging in unlawful acts.

Construction, Limited, Contract,
AIHS 2022

The grouse of the plaintiffs was that while a motion on notice for interlocutory injunction duly served on Amaechi and Malami was pending, they disregarded the pendency of the suit on January 19, 2022 and presented the contentious contract to the Federal Executive Council for award to the Chinese firm.

The letter of award of the contract to the CCECC dated January 31, 2022 was attached to the further affidavit along with the firm’s acceptance of the contract dated February 4, 2022.

“I know that none of the parties in a litigation before a court of law is allowed to take the law into his own hands and foist upon the court fait accompli, thereby rendering it impossible for the court to arrive at decision one way or the other,” the affidavit read in part.

Meanwhile, Justice Ahmed Ramat Mohammed has fixed April 26 for the determination of the motion on notice seeking interlocutory injunctions against the four defendants in the suit.

Plaintiffs in their writ of summons issued by their lead counsel, James Okoh, are asking the Federal High Court to cancel the letter of ‘No Objection’ issued by the Bureau of Public Procurement in favour of CCECC for the award of the rail line contract.

The disputed contract is for the reconstruction of the narrow gauge track from Minna in Niger State to Baro, with an extension to the Baro River Port, at a sum of N80.6bn and a completion period of 36 months.

The plaintiffs prayed the court for an injunction restraining the defendants from awarding or purporting to award the contract to the Chinese firm or any third party based on the alleged flawed bidding process.

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Fesadeb February 21, 2022 February 21, 2022
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