The Enugu State Government has accused the chief executive officer of Sujimoto Luxury Construction Limited, Olasijibomi Ogundele, of defrauding the state of N5.76 billion meant for the construction of 22 Smart Green Schools.
Mr Ogundele was declared wanted on Friday by the Economic and Financial Crimes Commission (EFCC) over alleged money laundering and diversion of funds.
A video later surfaced showing him denying the allegations and stating he was ready to clear his name.
In a statement on Friday, the state commissioner for information and communication, Malachy Agbo, said the contract was awarded on July 2, 2024, for a total of N11.45 billion.
According to him, the government paid 50 percent of the contract sum upfront to accelerate the project, but the sites were abandoned.
“The Enugu State Government paid the sum of N5,762,565,475.25, representing 50 per cent of the contract sum, in order to fast-track the projects at all the sites,” the statement read.
The government alleged that Ogundele failed to meet contractual obligations, using inexperienced workers and producing work that did not meet structural requirements.
It also claimed he ignored calls, messages and invitations to project briefings, as well as failed to cooperate with law enforcement inspections.
Mr Agbo said a joint inspection by the state ministry of works and Infrastructure and the EFCC on May 8 and 9, showed “minimal to no significant work done at the said sites one year after the contract award.”
He added that although Ogundele presented a bond from Jaiz Bank to secure the contract, the funds paid to his company were not deployed to the project.
The state government said the contract sites have now been reassigned to new contractors to ensure the schools are completed ahead of the school resumption.
It also urged Nigerians to disregard Ogundele’s public defence, insisting it would recover the funds.
Earlier, Ogundele had described the controversy as a business deal gone wrong, explaining that it stemmed from a contract with the Enugu State Government.
He maintained that he was not guilty of any crime and promised to appear before the EFCC to clear his name.
In November 2024, Ogundele was also accused of defrauding a client in a $325,000 real estate deal, which he denied, blaming rising costs and currency depreciation for the delays.
