Nigeria

FHA explains delay in contractors’ payment

The management of the Federal Housing Authority (FHA) on Wednesday said all contractors being owed by the agency will be paid once its verification exercise has been concluded.

It said contractors who have completed their projects and met all key performance indices will be paid on Friday March 19.

Activities were on Tuesday brought to a stand still at the office of the FHA Abuja as result of protests by aggrieved contractors over non-payment of N1.5 billion debt owe them.

Dozens of contractors who handled the construction of Abuja Mass Housing Project for agency stormed the office to register their grievances over the debt.

Operating under the aegis of Federal Housing Authority Contractors Association, the contractor staged the protest against FHA citing delay in payment of funds after the projects have been completed.

However, FHA management under Senator Gbenga Ashafa in a statement said the delay was occasioned by painstaking verification exercise so that Nigerians get value for their money.

The statement reads “Having just concluded a fruitful meeting with representatives of contractors being owed by the Federal Housing Authority, the management of the FHA, in the spirit of transparency, wishes to assure the Nigerian people of its commitment to fairness and due diligence”.

“Since assumption of office, the new management, under the leadership of Senator Gbenga Ashafa, has made it a priority to adhere strictly to the ethics of public accountability in the payment of every contractor that has delivered on the agreed milestones, as it relates to the housing projects currently under construction”.

“The delay in payments that resulted in the recent demonstration by contractors working on some of the Authority’s projects was largely due to the extent of painstaking verification that had to be carried out via rigorous auditing, on-site verification and physical inspection, quality control and compliance with global standards – all in a bid to ensure that the Nigerian people – prospective home owners – get value for their money”.

“We have, therefore, assured every contractor, many of whom the FHA has enjoyed a long and healthy relationship with, of the management’s commitment to pay off every outstanding debt owed to those who have completed their projects and have met with all agreed Key Performance Indices by Friday, 19 March 2021”.

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