The Nigerian Senate and Julius Berger Nigeria Plc on Tuesday resolved a dispute concerning abandoned projects handled by the construction firm.
Following the resolution, the Senate withdrew the warrant of arrest earlier issued against the company’s Managing Director, Peer Lubasch, for failing to appear before its Committee on Works.
The Senate had, on December 12, 2024, issued the warrant after Mr. Lubasch repeatedly declined invitations to explain delays and cost escalations in ongoing projects.
The resolution followed a motion moved by Senate Minority Whip, Senator Osita Ngwu (Enugu West), and co-sponsored by Senators Asuquo Ekpenyong (Cross River South) and Mpigi Barinada (Rivers South East).
Senator Ngwu accused Julius Berger of refusing to engage with the Senate Committee on Works regarding the abandonment of projects and a significant cost variation on the Odukpani-Itu-Ikot Ekpene Road project, which increased from ₦54 billion to ₦195 billion.
However, during Tuesday’s plenary, the Senate vacated the arrest warrant after receiving a written apology from Julius Berger.
In a letter addressed to Senate President Godswill Akpabio through the Chairman of the Senate Committee on Works, Senator Barinada Mpigi, the construction giant apologized for its absence, citing miscommunication during a leadership transition.
The letter, dated January 10, 2025, and signed by MD Peer Lubasch and Director of Administration Dr. Abdulaziz Isa Kaita, stated:
“We acknowledge receipt of your instructions regarding the investigative hearing on the Odukpani-Itu-Ikot Ekpene Road and sincerely apologize for missing the previous meeting due to miscommunication during our leadership transition.
“JBN remains committed to partnering with the National Assembly and Federal Government to deliver projects that benefit Nigerians, address infrastructural challenges, and create jobs. We assure you of our attendance at the next committee meeting and look forward to continued collaboration.”
The apology was accepted by the Senate during plenary following a voice vote called by Senate President Akpabio. The investigative panel, led by Senator Mpigi, also accepted the apology but cautioned Julius Berger against allowing similar issues to escalate in the future.
During his explanation to the committee, the MD of Julius Berger attributed project delays to challenges such as slow payment of contract advances and cost variations.
“JBN has an unquestionable track record of consistency in quality project execution in Nigeria since 1965, with a workforce of over 10,000 and more than 150,000 indirect workers,” Lubasch said.
The committee pledged to mediate between Julius Berger and the Federal Ministry of Works to resolve any lingering disagreements.
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