The immediate past Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has dismissed report of diversion of $1.5 billion China EximBank loan meant for the construction of standard gauge line linking Lagos and Kano.
Okonjo-Iweala in a statement by her media adviser, Paul Nwabiuku, said the alleged diversion has no substance for the simple reason that “the Kano-Lagos project was not even among the projects presented for funding by the China Exim Bank for several strategic infrastructural projects across the country.”
Nwabiuku stated that the China EximBank keeps and disburses funds for approved projects to contractors based on milestones, adding that the funds are not domiciled with Finance Ministry.
The former minister directed anyone interested in establishing the truth on the loan to cross-check with the China EximBank or the Chinese Embassy.
“It is noteworthy that even though President Muhammadu Buhari, in his reported comments on the allegation, made no reference to Dr. Okonjo- Iweala but rightly stressed the need for due process and transparency in the execution of public projects, a sponsored media campaign has once again been launched by political elements to make the former minister the culprit in a non-existent scandal.
“The alleged diversion has no substance for the simple reason that the Kano-Lagos project was not even among the projects presented for funding by the China EximBank for several strategic infrastructural projects across the country.
“In fact, it was the Lagos– Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China EximBank. But in the end, no funds were assigned for the Lagos- Ibadan rail project by the China EximBank.”
Providing further insight on the loan, the statement said that $500 million was for the expansion of four international airport terminals in Lagos, Kano, Abuja and Port Harcourt; $500m for the Abuja Light Rail project; $984 million for the Zungeru Hydroelectric power project and $100 million for the Galaxy Backbone project.
“It is also important to note that even if the alleged project was on the list of China EximBank-funded projects, diversion of any Chinese funds would have been extremely difficult because the terms of the contract and the processes would simply not have permitted such action,” he stated.
He added that the procedure for realising approved loans entails that the funds remain in the China EximBank and are released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by the responsible ministry.
“For the sake of emphasis, the China EximBank does not disburse money directly to government and therefore the issue of diversion does not arise,” he noted.
President Buhari had, last week, asked the Ministry of Finance to provide explanations on the whereabouts of the foreign loans obtained for rail projects but diverted to other purposes under the watch of former Minister of Finance, Okonjo-Iweala.
The president’s directive followed an instance of the diversion of a substantial part of the $1.005 billion from the Chinese EximBank, meant for the construction of a standard gauge rail line linking Lagos and Kano States to somewhere else.
c
Follow Us