‘FG owes construction industry over N600 billion’
The Federation of Construction Industry (FOCI) has said that the immediate past administration of President Goodluck Jonathan is indebted to contractors to the tune of about N600 billion.
President of FOCI, Solomon Ogunbusola, told journalists yesterday in Abuja at the organisation’s 59th annual general meeting that the indebtedness of the government made urgent call for a state of emergency in the sector imperative.
He cited three major corporations that are “almost distressed” by over N200 billion debts being owed them by the government to include Julius Berger, SETRACO and MCC.
His words: “Government is owing the construction industry over N600 billion. For over a year or two years now, we have never had it so bad because the payments are not coming and we don’t know what to do.
“It is over N600 billion because I can mention over three companies, including Julius Berger, that are owed over N200 billion. Their financial director said it in their annual general meeting that they are being owed over N9 billion, and out of the N90 billion over N70 billion is owed by the Federal Government.
“MCC is owed over N70 billion too, SETRACO (is owed) over N80 billion, so all the companies are being owed. Dantata, they are owing them and I will not tell you what I don’t know. How can you continue to owe all these companies and for over a year or two years now, we have never had it so bad.