It was learnt that N2billion had been released to the contractor out of the contract sum, before it was terminated and re-awarded.
Dantata and Sawoe, the contractor handling the Akure-Ado Ekiti highway project has filed a legal action against the Federal Government.
The contractor sued government for terminating the N30billion contract and re-awarding it to two new contractors.
It was learnt that N2billion had been released to the contractor out of the contract sum, before it was terminated and re-awarded.
However, the Minister of Works and Housing, Babatunde Fashola recently stated that the contract had been re-awarded after the initial contractor failed to secure the needed funds to prosecute the road project.
Meanwhile, the Minister of Transportation (State), Mr Ademola Adegoroye, said that the court action instituted by the former contractor was stalling the takeoff of the project.
Adegoroye, who spoke during a radio interview, said: “The reconstruction of the deplorable Ado Ekiti-Akure Expressway has been re-awarded to two new contractors but the court action instituted by the former contractor had stalled the execution of the project.
“The crisis stalling the construction of the Akure-Ado Ekiti road will soon be resolved for the project to fully take off.
“The Minister of Works and Housing, Mr. Babatunde Raji Fashola, is doing everything possible with other stakeholders to ensure that the project is not abandoned.
“I know how our people are suffering on that road. My mother is from Ekiti and my father is from Akure. So, I know how crucial that road is to our people in Ondo and Ekiti States. We are not relenting in our efforts on the road.
“Two days ago, I and the new Governor of Ekiti State, Mr. Biodun Oyebanji, met and we discussed this issue. We resolved to meet with the former contractor in January to see how the issue can be settled out of court so that the project can take off.”