Financial experts have opened a new vista to the billion Naira contract scam involving J-Pros International Nig Limited, saying that the company is not qualified to handle a contract of such magnitude.
Speaking in separate interviews, the experts stated that Imo State government erred to have awarded a N1.15billion road contract to the company when its share capital is just N10million.
Mr. Uche Emegwara, an Owerri-based accountant submitted that at best, J-Pros could only do a contract worth about N200million. According to him, companies are barred from executing contracts more than 30 percent of its share capital.
Record from the Corporate Affairs Commission (CAC) shows that J-Pros international Nig Limited has N10million share capital. While Joseph Dina, its chairman/managing director holds N7m share, Prince Macdonald Akano holds N2m share. The other two directors namely Aline Dina and Jean Samir Aoun own N500,000 shares apiece.
Also speaking, Mr. Okereke Kingsley of Union Registrars submitted that the low share capital of the company compared to the magnitude of the contract sum makes the company ineligible for the job.
‘J-Pros does not have the capacity to execute a contract of that size. Do you know the risk involved? The risk is bigger than it could handle,’ Okereke submitted.
Emegwara stated that the award of such a big contract to J-Pros is corruption itself. ‘Corruption has eaten deep in the country’s fabric, he further stated, adding: This is why anything goes.
Okereke also lamented that the contract was awarded to J-Pros in February 2012 when its share capital was below N10m.
According to information from the CAC, Prince Akano applied to join the board of directors of the company in June last year. It therefore means that J-Pros had only N8million share capital since Akano only hold two million shares.
The experts also bemoaned the cost of the contract going by the milestone set by the incumbent administration.
At inception, state governor, Owelle Rochas Okorocha sounded it loud and clear that he had reduced the cost per kilometre of road from N120m to N60m. He told contractors who wished to do business in the state to either accept it or ship out.
Okereke wondered why the governor awarded a 4kilometre road to J-Pros for N1.15billion which is about N350million per kilometre.
Courtesy: Gele Agbai