House of Representatives has expressed dismay that none of the developers in the Abuja land swap programme was able to pay the compulsory commitment fee of N350 million.
Nigerian Pilot gathered that in the contract agreement, every developer is supposed to pay 15 percent equity fee into a dedicated account out of the entire contract sums.
Chairman of the House Committee on Federal Capital Territory, Hon Herman Hembe disclosed this yesterday at a five-day public hearing on the ‘alleged malpractices associated with the land swap programme.’
Hembe said the developers deliberately failed to pay the commitment fee of N350 million and wondered why such contractors should be allowed to handle such big projects.
He explained that as a government initiative, the land swap programme should reflect the principle of federal character and public procurement act, especially in contracts and recruitment.
In his presentation, the project director of Gwagwa Concession Limited, Mustapha Bello admitted that they did not attain financial close, but were able to pay N2.5 million for ground breaking.
Bello informed the committee that the N2.5 million was paid to the FCT land programme account.
The managing director of Gwagwa Concession Limited, Farouk Sani said the company was incorporated in July 2013.
When asked how it heard about the land swap, Sani said he got to know through an advertisement.
He was further directed to come today with its feasibility study, fiscal plan, engineering design among others.
While clarifying a point on the land swap, former Minister of the FCT, Bala Mohammed said he exercised his powers under the Land Use Act on the land swap programme.
He pointed out that the land swap was not a deal, but a programme, adding that he did the allocations in good faith.
Mohammed insisted that he had the powers to allocate lands when he was in office just as the lawmakers had powers to oversight.
The land swap programme has over 7000 hectares, out of which Gwagwa Concession Limited has 840.
Some of the contractors that appeared before the committee on Tuesday are Afri International, Rose Hill Group, Gwagwa Concession Limited and System Properties.
The public hearing continues today.