Ngozi Okonjo-Iweala, Nigeria’s immediate past minister of finance, has refuted reports alleging that the $1 billion Chinese rail loan was diverted to other projects under her watch.
Okonjo-Iweala |
Okonjo-Iweala said the allegations were
not true on the grounds that the Kano-Lagos rail project was not funded
by the alleged China-EximBank loan and as such the issue of diversion of
the said loan should not arise.
The China-Exim Bank keeps and disburses
funds for approved projects to contractors based on milestones and as
such funds are not domiciled with the Finance Ministry, she said.
There were reports last week that
President Muhammadu Buhari queried the Ministry of Finance over alleged
diversion of a substantial part of $1.005 billion loan obtained from the
Chinese Exim Bank for the construction of a rail line linking Lagos to
Kano. Buhari sought the explanation when Mohammed Bashar, permanent
secretary, Ministry of Transport, briefed him on the ministry’s
activities at the Presidential Villa, Abuja.
But Okonjo-Iweala, speaking through Paul
Nwabuikwu, her media adviser, said the response became necessary
following several media inquiries on the matter since the story broke on
the said allegations made by Bashar.
“I want to state categorically that
there is no truth in the reported allegation. Anyone who is interested
can cross check with the China-Exim Bank or the Chinese Embassy.
“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,” Nwabuikwu said
in a statement.
He explained that it was actually the
Lagos–Ibadan rail project, not Lagos-Kano rail project that was proposed
in the original application to the China-Exim Bank. But in the end, the
China-Exim Bank assigned no funds for the Lagos-Ibadan rail project.
Clarifying further, Nwabuikwu said the
following projects, including $500 million for the expansion of four
international airport terminals in Lagos, Kano, Abuja and Port Harcourt;
$500 million for the Abuja Light Rail project, and $984 million for the
Zungeru Hydro-electric power project, were being funded from facilities
obtained from the China-Exim Bank, and were at various stages of
completion.
The $100 million for the Galaxy Backbone
project is also part of the projects being funded by the Chinese loan,
he said, noting that these projects could be verified.
“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 maintained.
The procedure, according to him is that
funds for approved loans 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, which in this case would be the Federal Ministry of Transport,
based on the agreed milestones.
“For the sake of emphasis, the
China-EximBank does not disburse money directly to government and
therefore the issue of diversion does not arise.” Nwabuikwu maintained.
In the statement, Nwabuikwu raised
concerns that even though President Buhari, in his reported comments on
the allegation, made no reference to 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.”
“This is yet another example of the kind of whispering campaign of calumny, innuendo, misinformation, and outright distortions being perpetrated by certain political elements against Dr. Okonjo-Iweala in a bid to try to damage her reputation,” he claimed.
“This is yet another example of the kind of whispering campaign of calumny, innuendo, misinformation, and outright distortions being perpetrated by certain political elements against Dr. Okonjo-Iweala in a bid to try to damage her reputation,” he claimed.
BY
Oniyi Nwanchuk
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