Umahi cracks down on Contractors hoarding FG funds

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The minister also condemned the practice of fixing public funds in banks while seeking fresh disbursements from government, declaring that such conduct would no longer be tolerated under the current administration.

By Lydia Chigozie-Ngwakwe

The Minister of Works, Sen. Dave Umahi, has directed contractors who have held Advance Payment Guarantees (APGs) for years without executing projects to immediately return to site or risk forfeiting further payments.

Umahi described as unacceptable the practice of retaining Federal Government funds for four to five years without deploying them to the projects for which they were released, while simultaneously submitting payment certificates for additional funds.

“It is not done anywhere,” the minister stated, stressing that contractors must resume work without delay and apply the advance payments strictly to the specified contracts.

He warned that the ministry would no longer honour payment certificates from contractors still holding unutilised government funds.

“I will not pay your certificates if you are still holding our money for the past four or five years and want me to continue to pay,” Umahi said.

The minister also condemned the practice of fixing public funds in banks while seeking fresh disbursements from government, declaring that such conduct would no longer be tolerated under the current administration.

“That time is gone. We will continue to fight alongside Mr President until we retake our country,” he added.

Umahi reaffirmed the Federal Government’s commitment to accountability, transparency and prudent management of public resources, noting that infrastructure delivery must reflect value for money and responsible stewardship.