Family Ties and Billion-Naira Deals: Umahi’s Alleged Role in Ebonyi’s Shady Contract Awards

The Ebonyi State government, led by former governor Dave Umahi, may have breached procurement laws in awarding parts of a N1 billion contract for the construction of shops at the Ebonyi State International Market, a SaharaReporters review suggests.

Investigations show that over N400 million worth of contracts for the market’s construction were awarded to companies linked to Umahi’s family members, including his younger brother and close associates. This raises serious questions about potential cronyism and a lack of transparency in the state’s procurement process.

One of the contracts, valued at N103 million, was granted to Alpha Ark Engineering Limited for the construction of a one-story building with 48 shops in Abakaliki, the state capital. The company, however, was the sole bidder for the contract, a situation that suggests the bidding process may have been manipulated to favor Umahi’s family.

The contract was awarded on January 18, 2019, but the state’s Open Contracting Portal reveals the bidding process opened on the very same day, raising further suspicions about the fairness of the process. More troubling is that the contract was officially awarded on January 2, 2019, prior to the public bidding announcement—an outright violation of competitive bidding norms outlined by the Bureau of Public Procurement (BPP).

The Family’s Financial Footprint: From Engineering Firms to Political Ambitions

SaharaReporters uncovered that Austine Chukwu Umahi, Dave Umahi’s younger brother, is listed as a director in Alpha Ark Engineering, the company that secured the controversial contract. Notably, Austine Umahi, who was appointed Secretary at the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) under the Buhari administration, contested in the 2022 Ebonyi South senatorial election, challenging his brother for the political seat.

Further investigation revealed other companies linked to the Umahi family. Cajegfrine Engineering Limited, registered in 2010, was found to have multiple directors with the Umahi surname. The contract awarded to the company—again for the construction of 48 shops at the International Market—was similarly marked by a lack of competitive bidding, with the company as the sole participant.

The Unanswered Questions: Were the Laws Ignored?

The questionable contract process extended beyond Alpha Ark Engineering. Mercy-seat Engineering Limited, another company with links to the Umahi family, was awarded two contracts worth N206.2 million for similar construction work. These contracts, which were also granted without competition, were finalized during Dave Umahi’s time as governor, further raising doubts about the transparency and fairness of the procurement system under his leadership.

Despite multiple attempts by SaharaReporters to get a response from Uzoma Betty, Executive Secretary of the Bureau of Public Procurement, she neither answered calls nor returned messages seeking clarity on the contracts. The lack of communication only deepens the mystery surrounding the contracts and whether the public procurement laws were intentionally sidestepped to benefit Umahi’s family.

A Pattern of Favoritism?

With evidence suggesting that the Umahi family was awarded multiple high-value contracts without competitive bidding, questions abound as to whether this was a pattern of favoritism, with the state using restrictive bidding processes to ensure certain companies—linked to those in power—were awarded lucrative government contracts. The ongoing investigation casts a dark shadow on the administration’s handling of public resources and raises serious concerns about the integrity of Ebonyi’s public procurement system.