N91.7B Fraud Alert; Amaechi, Malami sued over alleged illegal rail line contract award

The Minister of Transportation, Rotimi Amaechi and the Attorney General of the Federation (AGF), Abubakar Malami (SAN) have been dragged before a Federal High Court in Abuja over an alleged unlawful award of 190 km rail line construction to a Chinese firm without due process of law.

They were sued along with the Federal Ministry of Transportation and the benefitting firm, China Civil Engineering Construction Company (CCECC).
Plaintiffs in the suit marked FHC/ABJ/CS/1426/2021 Duluidas Nigeria Limited, Duliz Dredging and Construction Limited and Consortium of Duluidas Nigeria Limited, Duliz dredging and Construction Limited/Hebbelyixin Fastener Company Limited, China.

In their writ of summons issued by their lead counsel, James Okoh, the plaintiffs are asking the Federal High Court to cancel the letter of “no objection” issued by the Bureau of Public Procurement (BPP) in favour of CCECC for the award of the N91.5bn rail line contract in breach of procurement laws and re-issue same in their favour.

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 whopping sum of N91.5 billion 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 on the basis of the flawed bidding process.

In the alternative, they sought an order setting aside any purported award on the basis of the flawed and heavily compromised bid process by the Nigeria Railway Corporation (NRC) with the concurrence of other defendants.

They also asked for an order restraining the minister of transportation or any of his agents from presenting the CCECC to the Federal Executive Council (FEC) for the purpose of the award of the contract.

In the same way, they are asking the court to set aside any purported approval received from the Federal Executive Council awarding the disputed contract to any other company during the pendency of the suit.

The plaintiffs, who claimed to have quoted a lesser amount of N76.7 billion for the execution of the same project during their successful bidding, are alleging bias against them by the minister and undue favouritism in favour of the CCECC in the contract award.

They alleged that the minister on May 19, 2021, wrote the BPP for a certificate of no objection in favour of CCECC in the sum of N91, 580, 101, 710 and that by a letter of June 9, 2021, BPP rejected the minister’s request on the claim that such certificate can only be issued to them on the basis of their quotation of N76.7b to execute the job.

They asserted that along the line, other bidding processes were manipulated and compromised leading to receipt of an acceptance letter by the NRC from CCECC for the minister to be presented to the federal executive council for the purpose of the award of the contract.

Plaintiffs, therefore, prayed the court to make a declaration that the action of the minister and his agents in interfering with due process of the bid process for the contract damaged the integrity of the process of law. They also want the court to declare that the minister and his agents were biased in their assessment of the bidding in favour of the CCECC.

Plaintiffs applied for order of injunction against the minister, his ministry and the CCECC from continuing with the award of the contract and execution of same on the basis of a flawed process.

In the alternative, they sought general damages to be quantified against the defendants on a compensatory basis and compound interest for loss of use of money.

Meanwhile, a hearing in the matter has been fixed for February 17, 2022, by Justice Ahmed Ramat Mohammed.

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