The Ebonyi State government, under former Governor Dave Umahi, appears to have breached procurement laws in awarding portions of a N1 billion contract for constructing shops at the Ebonyi State International Market.
An investigation by Chronicles Reporters into the Ebonyi State Open Contracting Portal revealed that approximately N400 million of these contracts were awarded to Umahi’s younger brother, family members, and close associates.
One such contract was granted to Alpha Engineering and Construction Limited for building a one-story structure with 48 shops at the International Market in Abakaliki. According to details on the Open Contracting Portal, only Alpha Ark Engineering Company Limited submitted a bid for this project, and the contract was awarded to them for N103 million.
It is unclear why only one company bid for the project. This lack of competition raises concerns about the transparency of the process and suggests the possibility of restrictive bidding practices.
Umahi’s Brother Linked to Contracts
Further investigations revealed that Austine Chukwu Umahi, the former governor’s younger brother, is listed as a director in Alpha Ark Engineering Company. Records show the contract was awarded on January 18, 2019, during Umahi’s tenure as governor. However, discrepancies in the timeline show that while bidding for the contract officially began on January 18, 2019, the contract was awarded earlier on January 2, 2019. This suggests that the contract was awarded before the bidding process even commenced, with only Umahi’s brother participating and securing the deal.
In 2022, Austine was appointed Secretary at the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) under the Muhammadu Buhari administration. He also contested against his brother, Dave Umahi, in the Ebonyi South Senatorial election in July 2022.
Other Contracts Linked to the Umahi Family
Another company implicated in this report is Cajegfrine Engineering Limited, registered in 2010. Investigations revealed that the Umahi family members, including Nwaeze Umahi Elizabeth, Nwaeze Umahi, Umahi Nwaeze Obi-Abel, Nwaeze Chinyere Stephanie, and Ezeigbo Benson Chikadobia, are listed as directors in the company.
Cajegfrine Engineering Limited was awarded a contract to construct a one-story building with 48 shops at the International Market in Abakaliki. Similar to Alpha Ark, the company was the sole bidder and secured the contract for N103.1 million in January 2019. Again, bidding and awarding occurred on the same day, violating procurement laws requiring competitive bidding.
Mercy-Seat Engineering Limited
The Ebonyi State government also awarded two contracts worth N103.1 million each to Mercy-Seat Engineering Limited for constructing new shop buildings at the same market. The total contract value stood at N206.2 million. These contracts were awarded on October 3, 2018, during Umahi’s governorship.
Directors listed in Mercy-Seat Engineering Limited include Engineer Umahi Stanley O, Catherine Onu Umahi, Femi Obeyemi, and Chinyere Obi Umahi. As with the other companies, Mercy-Seat Engineering Limited was the sole bidder and secured the contracts.
Violations of Procurement Laws
The Bureau of Public Procurement law mandates competitive bidding for public contracts, yet the Ebonyi State government awarded these contracts without adhering to these guidelines. Despite not being listed as direct procurement, the contracts were handed to companies closely linked to the Umahi family, raising questions about favoritism and lack of transparency.
Efforts to get a response from Uzoma Betty, the Executive Secretary of the Bureau of Public Procurement, proved unsuccessful. Calls and messages sent to her WhatsApp were not returned, even though she read the messages.
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