DAILY TRUST
The federal government has re-awarded the revoked section of the Abuja-Kaduna highway to an inactive and obscure company, Daily Trust investigations report.
The company, Infoquest Nigeria Limited as announced by the Minister of Works, Sen David Umahi, had secured the contract for the completion of the remaining sector of Section 2 of the Abuja-Kaduna highway.
Daily Trust reports that the section of the road was revoked from Julius Berger Construction Company over a price dispute and completion timeline. However, the construction company in an advertorial placed in the national dailies blamed the adjustment in cost on inflation which led to increases in energy and material costs. It also claimed that it had not received payment for works executed since November 2023.
Sen. Umahi had during an inspection of the road last week said Infoquest Nigeria Limited secured a “No objection” of N252.89 billion from the Bureau of Public Procurement (BPP) and the contract would be presented for ratification at the next sitting of the Federal Executive Council (FEC).
A “No Objection,” according to the Public Procurement Act, 2007, means the procurement process was conducted in accordance with the provisions of the Act and that the Bureau of Public Procurement had no objections to the award of the contract. This essentially serves as an approval for the procuring entity to proceed with the contract award and make payments to contractors or suppliers.
Status of Infoquest
However, Daily Trust reports that the status of Infoquest Nigeria Limited is inactive on the Corporate Affairs Commission (CAC) website.
This means that the decision to award the contract to the company violates the Companies and Allied Matters Act (CAMA) 2020.
Additional information about the company shows its total ordinary shares is N100,000 and its total share capital is N100,000. Also, the company has never paid annual returns since its establishment according to information accessed by Daily Trust from the CAC website.
What the Act says
According to the Companies and Allied Matters Act (CAMA) 2020, an inactive company is legally incapable of executing contracts or undertaking new business activities.
Therefore, the decision to award a contract for the Abuja-Kaduna highway to Messer Infoquest Nigeria Limited contradicts Section 525(3) & (4) of the CAMA 2020 which empowers the Corporate Affairs Commission (CAC) to remove such companies from the register.
Once struck off the register, the company ceases to exist legally and cannot enter into or enforce contracts.
Also, section 526 states that once a company is struck off, all its assets become bona vacantia (ownerless property) and vest in the government.
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