Former Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala has debunked media reports that a substantial part of a $1.005 billion loan from the China Exim-Bank obtained for the construction of a standard gauge rail line linking Lagos and Kano was diverted under the immediate-past administration.
Following a presentation to President Muhammadu Buhari last Monday by the Permanent Secretary, Ministry of Transport, Alhaji Mohammed Bashar that a substantial part of a $1.005 billion loan for the rail line had been diverted, the president had reportedly expressed disappointment that foreign loans obtained in line with signed agreements were moved from one project to another.
But reacting to the alleged diversion on Sunday via a statement by her Media Adviser, Mr. Paul Nwabuikwu, Okonjo-Iweala declared that the first point to be cleared was that the Kano-Lagos rail project was not funded by China-Exim Bank.
She also noted that contrary allegations, the Chinese bank keeps and disburses funds for approved projects to contractors based on milestones as funds are not domiciled with the Finance Ministry
“Since this story was first reported, we have continued to receive media inquiries regarding an allegation reportedly made by the Permanent Secretary, Ministry of Transport, Alhaji Mohammed Bashar, that a substantial part of a $1bn loan obtained from the China-EximBank by the Jonathan administration for a Kano-Lagos rail project was diverted to other projects.
“I want to state categorically that there is no truth in the reported allegation. Anyone who is interested can cross-check with the China-EximBank or the Chinese Embassy.
“It is noteworthy that even though President 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 Exim Bank for several strategic infrastructural projects across the country,” the former minister said.
According to her, it was the Lagos–Ibadan rail project and not the Lagos-Kano rail project that was proposed in the original application to the China-EximBank, adding that in the end, no funds were assigned for the Lagos-Ibadan rail project by the China-EximBank.
“The fact which can be confirmed is that the following projects which are at various stages of progress are being funded from facilities obtained from the China-Exim-Bank.”
