The Lagos State government on Monday terminated the contracts of some operators with the Lagos State Waste Management Authority (LAWMA) over alleged contract violation and fraud.
In a statement issued on the matter, LAWMA said the operators violated some terms of their agreement with the government.
However, the staff of the affected companies had been directed to re-apply directly to the authority for employment.
A panel set up by the state government earlier in the year discovered that the state was being defrauded of millions of naira in a scheme involving LAWMA contractors.
The contractors, many of whom are politicians, allegedly inflated the wage bills of the street sweepers and supervisors under them.
The state pays the contractors over N560m monthly.
An audit of the agency undertaken by the state government revealed that a huge chunk of the money was going to ghost workers and non-existent contractors.
LAWMA added that those indicted in the audit had been asked to go.
The statement read: “The Lagos State Waste Management Authority has announced the immediate termination of all street-sweeping briefs awarded to some companies found involved in practices violating their contracts.
“The agency also revealed that the recent audit exercise approved by Governor Babajide Sanwo-Olu exposed the sharp practices of the agents, assuring that services will be repositioned for greater efficiency and value for tax-payers’ money.”