How Ebonyi Government Under Dave Umahi Violated Procurement Laws, Awarded N412million Worth Of Contracts To Family Members

This is as a SaharaReporters’ review of the Ebonyi State Open Contracting portal showed that about N400million of the contracts were awarded to the former governor, Umahi’s younger brother, family members  and cronies.

The Ebonyi State government under former governor, Dave Umahi, may have violated the law in the awards of parts of the N1billion contracts for the construction of shops at the Ebonyi State international market.  

This is as a SaharaReporters’ review of the Ebonyi State Open Contracting portal showed that about N400million of the contracts were awarded to the former governor, Umahi’s younger brother, family members  and cronies.

Checks by SaharaReporters showed that a contract was awarded to Alpha Engineering and Construction Limited for construction of a one storey building of forty eight shops at the International Market Abakaliki. 

Details on the Ebonyi State Open Contracting portal however shows that only Alpha Ark Engineering company limited bidded for the contract. The contract was then awarded to the company at N103million.

It is unclear why only the organisation bidded for the contract, especially as such may have denied room for competitive bidding processes and meant the state used restrictive bidding for construction of shops.

Further checks revealed that Austine Chukwu Umahi, who is a younger brother of former governor, Dave Umahi, was listed as a director in the Alpha Ark Engineering Company.  

The contract was also awarded on January 18, 2019, when Dave Umahi was governor of the state. 

Details on the Ebonyi State Open Contracting Portal also shows that while the bidding for the contract was started on January 18, 2019, the contract was awarded on January 2nd, 2019. 

This would mean that based on the information provided on the state’s open contracting portal, the contract was already awarded before it was opened for bidding wherein only Umahi’s younger brother bidded and won the contract.

In 2022, Austine was appointed secretary at the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) by the then Muhammadu Buhari-led Presidency. 

In July 2022, Austine also contested against his brother, Dave, in the Ebonyi South district senatorial election in the state. 

Another company that was tracked in this report is Cajegfrine engineering limited, the company was listed as registered in 2010. 

However, checks show that the Umahi family are listed as directors in the organisation. 

Some of those listed included; 

Nwaeze Umahi Elizabeth, Nwaeze Umahi, Umahi Nwaeze Obi-Abel, Nwaeze Chinyere Stephanie and Ezeigbo Benson Chikadobia. 

Checks on the Wikipedia page of former governor, Dave Umahi lists Obi-Abel as a brother to the former governor. 

Checks by SaharaReporters shows that the organisation was awarded a contract for Construction Limited for construction of a one storey building of forty eight shops at the International Market Abakaliki. 

The organisation however was the only one that was listed as a bidder for the contract and then the contract was awarded to the firm at the tune of N103.1million in January, 2019, suggesting an absence of competitive bidding. 

Findings show that the contract was awarded on the same day bidding opened. For instance, bidding opened on 2nd January 2019, the same day that the contract was awarded. 

This is despite the clear provision of the Bureau of Public Procurement law stating competitive bidding; it is even more so as the contract was not listed as a direct procurement and instead awarded to a company. 

The Ebonyi State government awarded two contracts to Mercy-seat Engineering limited for the construction of a new storey shop at the Ebonyi International market, the contract sum stood at N103.1 million each totalling N206.2 million. 

It was awarded on 3rd October, 2018, during the time of Umahi as governor of Ebonyi State.

Checks however showed that the directors in the company were listed as Engineer Umahi Stanley O, Catherine Onu Umahi, Femi Obeyemi, Chinyere Obi Umahi. Only the organisation bidded for the contract and won the deal, per details on the Ebonyi State open contracting portal. 

SaharaReporters contacted the executive secretary of Bureau of Public Procurement, Uzoma Betty to seek comments on why there was no competitive bidding for the contracts and the role Umahi being governor of the state as of the time of the contract award played in leading to awards of contracts to these companies.

She however did not take her call nor returned them. Despite reading messages sent to her on WhatsApp, she also did not reply to enquiries sent as of the time of this report. 

Read More