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Contractors in Kaduna threaten to remove healthcare facilities due to N30bn debt

A group of contractors involved in healthcare infrastructure projects throughout Kaduna State has voiced their concerns regarding the non-payment of over N30 billion for jobs completed since 2023 across all 23 Local Government Areas in the state.

In a statement released on Saturday through the Eagle Brain Mediation Team, the contractors urged Governor Uba Sani, the Kaduna State Ministry for Local Government Affairs, and the Economic and Financial Crimes Commission (EFCC) to address the outstanding debt immediately to avert a significant healthcare crisis.

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The statement noted that these contracts were properly awarded and executed, backed by comprehensive documentation, including signed agreements from all Local Government Chairmen, a Memorandum of Understanding with the Kaduna State Government through the Ministry for Local Government Affairs, and oversight by consultant Formal Act Legacy Ltd, led by Managing Director Bashir Mohammed.

The projects encompassed essential primary healthcare infrastructure, including the construction of boreholes, provision of vaccines and medications, delivery of hospital beds, generators, motorcycles for health workers, and ambulances, all of which were installed in government health facilities throughout the state.

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Despite finalizing the projects in 2023, the contractors have yet to receive payment, and repeated assurances from the state government and EFCC have not materialized into payment. Additionally, the consultant’s arrest and incarceration have complicated the resolution of the issue.

The frustrated contractors warned that if the payments are not made promptly, they may need to return to the project sites to retrieve all supplied assets, such as boreholes, ambulances, hospital beds, and generators, as a means to recover their losses.

They indicated that taking such action would significantly disrupt primary healthcare services across all 23 LGAs, leaving communities without access to clean water, emergency transport, medical supplies, and crucial hospital services.

The Eagle Brain Mediation Team revealed that the contractors had formally approached their office seeking a peaceful resolution through dialogue, noting their repeated engagement with stakeholders to prevent a collapse of healthcare services.

The mediation team cautioned that neglecting this matter could harm Kaduna State’s reputation, diminish trust in public-private partnerships, and deter future private sector investments in government initiatives.

The contractors have called on the Kaduna State Government to promptly verify all completed projects, create a clear payment timeline for the outstanding debt, hold a final mediation meeting with the contractors and Eagle Brain within 14 days, and establish a direct payment method that sidesteps any legal issues related to the consultant.

They emphasized that paying this debt is not just a legal obligation but a moral duty that directly impacts the health and well-being of residents in Kaduna.

Eagle Brain reiterated its commitment to peaceful mediation but warned that urgent government action is essential to prevent a crisis that could deprive communities of crucial healthcare infrastructure.

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