From Femi Oyelola, Kaduna
The Kaduna State Commissioner for Local Government and Chieftaincy Affairs, Hon. Sadiq Mamman Lagos, has dismissed claims that contractors shut down the Ministry for Local Government over an alleged N30 billion debt, describing the reports as fake news and blackmail.
Addressing members of the press on Thursday, Mamman Lagos said the Uba Sani administration is not involved in any transaction with the so-called Kaduna Contractors Group and has not awarded contracts through any of the 23 local government areas since taking office.
“We are here this afternoon to counter what we saw on social media yesterday by the so-called Kaduna Contractors Group. We don’t know who they are or how they claimed that they shut down the Ministry for Local Government over a liability of N30 billion,” he said.
The commissioner clarified that the current administration has no contractual agreement with the group. “When we came in, it was not the Uba Sani administration that awarded any contracts to the local governments. None of the 23 local governments awarded any contracts,” he stated.
He explained that the only related transaction found in the handover notes from the previous administration involved a company called Formal Art under an SDGs arrangement. The agreement, he said, was that Formal Art would secure contracts with various local governments and then pay subcontractors.
“We do not have any contractual agreement with them, and the Ministry for Local Government did not issue any award letter. None of the local governments under the present administration issued any award letter. We have no transactions with them,” Mamman Lagos said.
The commissioner disclosed that the matter is already under investigation by the Economic and Financial Crimes Commission (EFCC) and that the individual allegedly behind the scheme is currently in detention. “It is a pending issue with the EFCC. Even the individual who allegedly defrauded them is in custody,” he said.
He urged the aggrieved parties to seek legal redress if they believe they have a case. “Since it is turning into blackmail, they should go to court and let the court decide, especially as the matter is already before the EFCC and the individual is still in detention,” he added.
Mamman Lagos refuted claims that the ministry was shut down, stating that staff were at work and that the police intervened to disperse the protesters. “Nobody shut down the ministry yesterday. We were there, and we called the police because we did not want to take the law into our own hands. The police dispersed them,” he said.
Responding to questions on the spread of the allegations online, the commissioner described social media as a source of fake news and called for stronger regulation. “Anyone with a grievance should go to court. We do not have any agreement with anyone. It is just social media,” he said.
He also cautioned against the misuse of platforms like TikTok to spread misinformation and create disaffection. “People go on TikTok to record videos of themselves saying negative things, creating insecurity and disharmony in society,” Mamman Lagos said.
“The Kaduna State Government has no liability for the N30 billion allegedly owed to contractors. The matter remains under investigation by the EFCC and involves a company called Formal Art,” he reiterated, challenging the contractors to produce valid award letters if they have genuine claims.
On the role of the ministry, Mamman Lagos explained that the Ministry for Local Government is a supervisory body and does not issue contracts on behalf of councils.
“If you see us issuing contracts, it would be for joint projects agreed upon by the 23 local governments, with their consent. Individually, without the consent of local government chairmen, we do not issue contracts,” he said.
He advised any aggrieved contractor to approach the specific local governments that allegedly issued award letters, noting that even those councils did not have payment agreements with the contractors. “It is Formal Art that is supposed to pay,” he added.
The commissioner said the Uba Sani administration had initially intervened to assist local contractors caught in the dispute by setting up a committee with the EFCC and even initiating payments to some of them.
“We tried to handle the situation and even started paying some contractors, but when it turned into blackmail, we withdrew. Since they are impatient, they should go to court,” he said.
Mamman Lagos reiterated that since becoming commissioner, he has not encountered any contractor owed by the ministry.
He maintained that the matter stems from the previous administration’s dealings through Formal Art, whose managing director is under EFCC investigation.
“We only discovered a transaction from the previous administration involving a company called Formal Art, whose managing director, Bashir, is currently being investigated by the EFCC,” he said.
He concluded by restating the state government’s position: “When we assumed office, we stepped in to assist local contractors and even reached an agreement to pay them, with some already receiving payments.
However, once it turned into blackmail and character assassination, we stepped back. If they have further claims, they should go to court.”
