Saipem is accused of abandoning Rivers turbine generator set in The Netherlands, resulting in the state incurring huge demurrage cost
By Uzor Odigbo
Rivers State Government is to initiate a criminal proceeding against Saipem Contracting Nigeria Limited for alleged breach of trust which led to the abandonment of the State’s gas turbine generator unit and accessories in The Netherlands since 2012.
This was contained in a statement made available to newsmen by Kelvin Ebiri Special Assistant (Media) to the Rivers State Governor, on Thursday, October 21, 2021.
The decision to file a criminal proceeding against Saipem Contracting Nigeria Limited was taken at the 15th Executive Council meeting presided over by Governor Nyesom Ezenwo Wike at the Government House, Port Harcourt on Thursday.
Briefing journalists after the meeting, the Commissioner for Power, Damiete Herbert-Millier explained that due to the abandonment of the gas turbine generator unit and accessories by Saipem, the Rivers state government had incurred huge losses in terms of demurrage charges and others.
“Consequently, the council unanimously directed the Attorney General of Rivers State to file criminal proceeding against Saipem Contracting Nigeria Limited for her role in this ugly incident.”
The State Executive Council also approved the reconstruction of two roads, Oyigbo-Okoloma and Chokocho-Igbodo totaling 46.5km.
The Commissioner for Works, Elloka Tasie-Amadi said the Oyigbo-Okoloma project scope is 19.4km long at the cost of N11.483 Billion.
He further stated that the reconstruction of Chokocho-Igbodo Road is 27.1km, awarded at a cost of N13.523 Billion. According to him, the two projects are expected to be completed within twelve months.
Also speaking, the Commissioner for Finance, Isaac Kamalu, said the council gave approval for the Rivers State medium-term expenditure framework 2022-2024.
Kamalu said the council also approved the State participation in the Federal government and the Nigerian Governors’ Forum supported bridging finance support facility for subnational economies designed to cushion the impact of the repayment of the bailout.
The Special Adviser to the Governor on Special Projects, Alabo George-Kelly said the council approved the award of contract for the construction of the Rivers State Magistrate Court Complex at the cost of N8.1 Billion.
He said the scope of the project include, the construction of 24 Magistrate courts, which will be housed in four two-storey structure, three floors each