Ben Ogbemudia, Abuja
The All Progressives Congress (APC) has once again called on the Economic and Financial Crimes Commission (EFCC) to investigate Governor Godwin Obaseki of Edo State over corruption and mismanagement of public resources.
At a press conference held at the APC Secretariat on Sunday, State chairman of the party, Emperor Jarret Tenebe detailed a series of allegations concerning the construction and management of the Benin City Mall project.
The APC chairman first sounded the alarm on June 29, 2024, raising concerns over the escalating costs and questionable ownership of the Radisson Hotel project. The contract for the hotel, initially set at N19.4 billion, has ballooned to over N23 billion within a year.
According to the APC, the state government is now attempting to transfer ownership of the unfinished hotel to a private entity, echoing similar controversies surrounding the Edo State Modular Refinery.
Central to the APC’s fresh accusations is the Benin City Mall project, which was initially proposed to replace the state government library on Sapele Road. Governor Obaseki’s administration awarded the construction contract to A&K Construction Limited for N5.4 billion in November 2021, with a completion target of January 2023. However, the contract sum has since surged to N12 billion.
The project, a joint venture between Edo State Government and Persianas Nigeria Limited (the rights holder of the Shoprite brand in Nigeria), was structured with the state holding 85% equity for land and construction costs, while Persianas was to manage the mall for a 15% stake. Despite this arrangement, the project has seen numerous variations and cost inflations, leading to allegations of corruption and financial mismanagement.
In April 2022, A&K Construction requested an additional N1.3 billion for unspecified “MEP additional works.” This request was approved by Engr. Austin Osaretin Osakue, Managing Director of Edo State Public Building and Maintenance Agency, who also secured N331 million for further variations. Persistent cost increases and contract reviews have raised suspicions, particularly following a memo from Permanent Secretary Bernard Aigbe. Aigbe’s memo highlighted Persianas’ dissatisfaction with the project’s overpricing and their resultant withdrawal from their obligations.
Despite these issues, the contract was repeatedly reviewed, often with significant increases. On June 14, 2023, Governor Obaseki approved variations totaling nearly N900 million in a single day. By August 2023, the procurement process for setting up and automating a digital library in the mall was initiated under undisclosed terms, further fueling allegations of irregularities.
The APC therefore called for a thorough investigation into the project, questioning the roles of various entities and individuals involved. These include Redwire Marketing Company, listed as a promoter of the mall; Broll Property Services Limited, awarded the mall’s management contract despite Shoprite’s initial involvement; and the Chief of Staff to Governor Obaseki, Osaigbovo Iyoha, who is allegedly managing the mall.
Additionally, the APC is pressing for transparency regarding the state’s shareholding in the mall, the actual project cost, and the specifics of various financial transactions related to the project. Concerns also extend to other ventures, such as the Garrick Memorial School land acquisition, the failed Gelegele port project, and significant sums spent on demolitions and other questionable expenses.
The APC’s demands for EFCC intervention include a comprehensive audit of the Benin City Mall project and a closer look at the financial dealings of key state officials, including Secretary to the State Government Osarodion Ogie, Commissioner for Budget and Economic Planning Mrs. Adaze Aguele-Kalu, and others.
The APC’s allegations paint a grim picture of governance under Governor Obaseki, accusing his administration of plunging Edo State into debt while diverting public funds for private gain. The party’s call to action emphasizes the need for accountability and transparency to safeguard the state’s resources and restore public trust.
