From Kemi Yesufu, Abuja
The House of Representatives Committee on Federal Capital Territory (FCT), investigating the alleged malpractices in the execution of the one trillion FCT Land for Investment Programme has identified lack of due process for the failed take-off of the programme.
The programme better known as the Land Swap Deal was introduced under the Jonathan administration by the former Minister of the FCT, Senator Bala Mohammed. It entails granting of Greenfield lands to competent real estate developers who will in turn provide infrastructure such as roads, electricity, potable water, drainages and sewer lines, communication dots to residents without any financial or technical demand on the government, rake in billions of naira from banks in and outside the country and also generate over one million jobs. Under the deal, 7,600 hectres of land was made available by the FCT ministry to investors.
At the opening of investigative public hearing on the alleged malpractices under the scheme, it was revealed that 841 hectares of land allocated to Gwagwa Concession Company by the immediate past FCT administration worth N117, 638 billion was not paid for. Also, Abuja Infrastructure Investment Centre (AIIC), which got 289.9 hectres failed to pay the N350 million non-refundable fee.
Sani Yakubu, Head of Business Development for AIIC, who affirmed this at the hearing held at the instance of the House Committee on FCT, chaired by Herman Hembe (APC-Benue), admitted that the company was given allocation under the programme, but said: “We did accept the offer.”
However, the former FCT minister who interjected during Yakubu’s testimony stated that his administration did not engage the AIIC as it did not meet the basic requirements.
He explained that the initiative was geared towards fast-tracking the development of various districts across the nation’s capital city, even as the project was to raise investment to the tune of one trillion naira for the Federal Government, stressing that the project became necessary as only N2 billion had so far been invested by government for the development of 10 districts.
Hembe had in his introductory remarks disclosed that before the passage of the motion and its referral to his committee, there had been investigations into why the programme never took off.
He disclosed that preliminary findings by his committee showed that contrary to official gazette of AIIC detailing the requirements to qualify as a partner, majority of the companies selected by the centre failed to make the mandatory deposit of N350 million, based upon which an Memorandum of Understanding (MoU) will be signed before land is allocated.
The lawmaker explained that despite the failure to meet the financial requirement, and the non-observance of other requirements such as the signing of a Comprehensive District Development plan, some of these companies were allocated land.
He accused the immediate past FCT administration of conducting the entire programme without properly advertising it, in order to attract genuine investors.
However, the former FCT minister responded that he personally invited companies involved in the deal, “based on their track record.”
The incumbent FCT minister, Bello Mohammed though present at the hearing did not testify.
