FHA contractors protest against payment delay, illegal VAT deduction

Contractors under the aegis of Federal Housing Authority Contractors Association, Tuesday, staged a protest against FHA over delay in payment of completion funds of for the Abuja Mass Housing Project, Zuba totalling N1.5 billion as well as the Apo housing project awarded in 2011 and completed since last year February, 2020.

They also complained of illegal deduction of 7.5% Value Added Tax as against 5% Value Added Tax that was clearly stated in our BOQ and the letter of award of 2011 for Apo and 2018 of Zuba Mass Housing Project.”

The contractors numbering over 200 gathered at the FHA office at 26 Julius Nyerere Crescent, Asokoro, Abuja where the placard-wielding crowd chanted solidarity songs, calling for the release of their file which they said has been with the management .

The protesting crowd who caused traffic congestion on the road carried placards with inscriptions which called on the FHA Managing Director, Senator Gbenga Ashafa to firmly take charge or resign from his position.

They also accused the Executive Director Business Development, Mr Jubril Abdulmumini, of allegedly “withholding their money and using the same to award other contracts.”

Chairman of the Association, Mr Innocent Idika, told newsmen that some of the contracts were executed and handed over since 2011 without payment.

Odika further explained the reasons for the protest: “The total completion payment for Abuja mass Housing Project, Zuba was released last year by the Federal Government in the total sum of N1.5billion but the money has been with the management.

“Many contractors that had payment certificates since last December have not been paid, their files had been stocked at the office of Executive Director Business Development (EDBD) since December 2020.”

He further stated that “The Apo housing project was awarded in 2011 and was completed since last year February, 2020, it has been purchased and allottees have been living there but up till now, the chunk of the money has not been paid.”

Also, “illegal deduction of 7.5%  value Added Tax as against 5% Value Added Tax that was clearly stated in our BOQ and Our letter of award of 2011  for Apo Project and 2018 of Zuba Mass Housing Project.”

According to the chairman, several appeals and meetings held with management to resolve the aforementioned were to no avail.

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