The Minister of Science, Technology and Innovation, Chief Uche Nnaji, has revealed that more financial scandals concerning contracts awards under the administration of Governor Peter Mbah would soon be unveiled.
Nnaji who stated this in an interview in Enugu noted that the N5.7billion the state government paid to Sujimoto Luxury Construction Limited for the construction of Smart School was small compared to what was going on in the state.
“The current administration is causing our people immense suffering because it lacks the capacity. Look at the Smart Green School project scandal. Can you believe it? The issue of providing water in 180 days is another scandal. There are many scandals under this administration, and more will come to light soon,” he maintained.
Meanwhile, the South-East Youths Stakeholders Forum (SEYSF) has charged the Enugu State House of Assembly to commission an independent forensic audit of all major contracts awarded since 2023 by Governor Mbah’s administration particularly examining adherence or otherwise to due process and procurement guidelines.
The group in a statement titled “Sujimoto Scandal: Investigate Gov Peter Mbah’s Circumvention of Procurement Laws and Due Process,” lamented that the Sujimoto scandal exposes the growing body of financial impropriety by the Mbah administration, all pointing to a disturbing pattern of abuse of due process, awarding financially unviable contracts, and scapegoating contractors when projects inevitably fail.
“The Enugu State House of Assembly is enjoined to live up to its constitutional role by investigating the Governor Peter Mbah’s administration as the scandal over the N5.7billion Smart School contract to Sujimoto Luxury Construction Limited points to systemic corruption and contractual manipulation in Enugu government’s dealings with contractors and a deliberate circumvention of procurement laws and due process,” the statement signed by its Executive Director, Mr Onyirimba Mazi stated.
The Forum argued that on paper, Governor Mbah pursued an ambitious development agenda showcasing numerous high-profile projects across the state, but the reality is a disturbing pattern of administrative manipulation, contractual irregularities, and systemic evasion of established procurement guidelines.
“The case of Sujimoto Construction and several other contractors suggest an approach that may be deliberately designed to shift accountability from government failures to private enterprises, while obscuring the government’s own potential violations of due process and lack of financial transparency.”
Citing multiple sources, the Forum alleged that Gov Mbah has deliberately circumvented the provisions of the Public Procurement Act of 2007 and awarded contracts to his cronies without open competitive bidding and without proper valuation or feasibility studies.
“The Mbah administration has pursued a deliberate centralisation of procurement decisions in the governor’s office thereby creating an environment for financial misappropriation through inflated contracts; Contract awards to cronies and relations; Absence of technical evaluation for contracts and last-minute contract variations.
“Indeed, Gov Mbah’s refusal to publish annual audited financial statements further compounds these transparency issues, violating basic principles of fiscal accountability and public trust,” it argued.
Tackling Mbah’s administration on accountability and transparency, the Forum cited several high-value projects, including the revamping of Hotel Presidential and revival of Niger Gas Company Limited and queried the government’s refusal to proffer information relating to Contract award processes; Selection criteria for contractors; Detailed cost breakdowns and payment terms and schedules.
“This lack of transparency suggests that the avoidance of due process may be systemic rather than exceptional in the Mbah administration,” it noted.
The Forum further argued that evidence at its disposal shows that the Mbah administration created a culture of establishing unrealistic contractual terms, failed to adhere to due process, created conditions for certain failures, and then shifting blame to contractors when problems emerged.
“The case of Sujimoto Construction which illustrates this pattern clearly is not an isolated case. Anotherdocumented example involves a power supply contractor for electricity supply to Ninth Mile Corner Water Station and evidence suggests it may be part of a broader approach to governance in the state.
“To address these disconcerting developments, we urge the House of Assembly to amongst others urgently inaugurate an ad-hoc Contract Review Committee comprising private sector and civil society representatives to review controversial contracts and recommend fair resolutions.
“To compel the Mbah-led government to immediately resume publishing annual audited financial statements to enable proper public oversight.
“The development of Enugu State requires partnerships with private enterprises, not public vilification and grandstanding by government. Only through transparent processes, fair contracting practices, and mutual accountability can the Mbah administration achieve its much-publicised development objectives. The current approach of manufacturing failures to hide governmental inadequacies and abuse of due process serves neither the interests of Enugu’s people nor its economic future,” the statement noted.
‘YOU COROCODILE TEARS — ENUGU GOVERNMENT REPLIES SUJIMOTO CEO
The Enugu state government has accused Olasijibomi Ogundele, chief executive officer of Sujimoto Luxury Construction Limited, of defrauding the state of N5.7 billion.
The government alleged that Ogundele disappeared after receiving funds for the construction of 22 smart green schools across the state.
BACKGROUND
On Friday, the Economic and Financial Crimes Commission (EFCC) declared the real estate developer wanted for alleged diversion of funds and money laundering.
Hours later, a video surfaced online showing Ogundele in tears as he denied any wrongdoing.
The entrepreneur said the allegations stemmed from a contract with Enugu state, which he undertook despite concerns over safety and pricing.
“I’m not a thief, I’m not a fugitive,” Ogundele said.
He explained that rising inflation and attacks on his workers made the project difficult to execute, citing an increase in cement price from N7,000 to N10,000 per bag.
‘THEATRICS, CROCODILE TEARS’
On Friday night, Malachy Agbo, commissioner for information in Enugu, issued a statement dismissing Ogundele’s viral video as “theatrics and crocodile tears”.
The Enugu state government accused Ogundele of “premeditated fraud”, alleging that the businessman presented a bond from Jaiz Bank to secure the contract, but used a Zenith Bank account to receive payment, shielding Jaiz from liability.
Agbo said the N11.4 billion contract was awarded on July 2, 2024, with a six-month completion deadline.
The commissioner claimed that the government paid the contractor N5.7 billion upfront to fast-track the project, but Ogundele resorted to “shoddy jobs”.
“Rather than play to the rules of the contract to deliver quality projects for furnishing and equipping ahead of September 2025 school resumption, in line with the priority placed on the Smart Green Schools initiative by the government, Mr Ogundele resorted to shoddy jobs and the use of inexperienced workers and quack engineers,” the statement reads.
“None of his sites met the structural integrity of the projects as specified in the structural drawing.
“Worse still, he vanished into thin air with the money. All efforts made by the government to get him to a roundtable proved abortive.”
The statement added that Ogundele abandoned the sites, ignored calls, and failed to attend project briefings, prompting the government to involve the EFCC.
Agbo said a joint inspection by state officials and EFCC operatives in May 2025 showed “minimal to no significant work” on the 22 sites one year after the contract award.
He noted that some sites were not excavated and that the government has since reassigned the projects to new contractors.
“Nigerians should disregard his theatrics and crocodile tears,” Agbo said.
“The Enugu state government will surely recover every penny of Ndi Enugu obtained by Olasijibomi Ogundele.”
