Buhari Queries Okonjo-Iweala Over $1bn Rail transport Loan Diversion

President Muhammed Buhari on Monday 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, Dr. Okonjo Iweala.

The president directive followed an instance of the diversion of a substantial part of the loan of USD1.005 billion from the Chinese Exim Bank, meant for the construction of a standard gauge rail line linking Lagos and Kano States to somewhere else.

This was even as the Permanent Secretary, Ministry of Transport by the Permanent Secretary, Alhaji Mohammed Bashar informed the President that only $400 million is left of the loan.

Bashar made the revelation during a presentation of his ministry’s activities to president Buhari at the presidential villa.

Reacting, President Buhari said

“I hope that due process was followed before such diversions were carried out. Taking money from one project to another has to be done properly,” he warned.

The President regretted that government had, over the years, failed to meet its counterpart funding obligation on some projects, leading to such projects being left uncompleted or abandoned.

He added that there was a clear need to streamline, harmonize, and prioritize on-going projects in the transportation sector.

The Permanent Secretary of the Ministry also briefed the President on other challenges facing the transport and maritime sectors such as  encroachment on railway land, lack of security on inland waterways and the confused nature of agreements between the Nigeria Ports Authority and ports concessionaires.

The Permanent Secretary of the Ministry according to PUNCH was reported to have told State House corespondent that the ministry would meet the December deadline for the completion of the Abuja-Kaduna rail track.

He said, 

“On the rehabilitation programme of the old gauge lines, as you are aware, we have completed the Lagos-Kano and it is operational. Twice a week, people move from Lagos to Kano and back to Lagos. 

“We have also recently commenced operation from Kano to Port Harcourt, and Port Harcourt to Gombe and from Gombe upwards we have some challenges. 

“With regards to Abuja-Kaduna, track has been completely laid and we are now waiting for locomotives to arrive, which have been ordered and paid for. Our belief is that we will meet the deadline of December, 2015.”