Abandoned Projects: FMC Blames Contractors Disagreement, Inflation Rate For Non-Release Of Funds - THE ENCOUNTER NEWS

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Sunday, July 25, 2021

Abandoned Projects: FMC Blames Contractors Disagreement, Inflation Rate For Non-Release Of Funds

 


ABEOKUTA - After the Encounter News reports, the management of Federal Medical Centre, Idi-Aba, Abeokuta has blamed the non-release of funds for capital projects in the hospital on the disagreement between her and contractors over the feasibility of fulfilling terms of the projects due to inflation in market price of the building materials.


The management disclosed this in a press statement issued in Abeokuta on Saturday by its Head of Public Relations and Information, Mr. Segun Orisajo.


The Encounter News further reports that, the non release of funds for the execution of the capital projects was due to an instruction allegedly issued to the hospital management by the board Chairman not to touch the funds.


But Orisajo while reacting to the publication, noted that the stoppage of work has nothing to do with any directive by the  Board Chairman.


He added that, it was due to the effect of inflation and consequent reluctance of Contractors to agree to the terms of the projects. 


The statement reads as follows, "before the exit of the former Medical Director, there was disagreement by contractors on the feasibility of fulfilling the terms of the projects due to a sharp rise in the prices of building materials.

READ ALSO: FMC Abeokuta: Two Months After Musa-Olomu's Exit, President Buhari's Telemedicine Centre, Other Projects Suffer Neglect - INVESTIGATION

"The matter  was not resolved immediately thereafter. Consequently, several meetings have held to resolve this issue. In a matter of days, the contractors will mobilize to site.


"So the delay/stoppage of work has nothing to do with any directive by the Board Chairman to anybody. Rather, it is due to the effect of inflation and consequent reluctance of Contractors to agree to the terms of the projects. 


"All these have to be resolved at a higher level and progress is already being made."


He however, reiterated the management's appreciation to the  media for their concerns, advising to seek information at the appropriate quarters before going to press.

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