President Muhammed Buhari on Monday called for an explanation from the Federal Ministry of Finance on the foreign loans obtained for rail projects but diverted to other purposes.
Speaking at the end of a presentation by the Permanent Secretary, Federal Ministry of Transport, Alhaji Mohammed Bashar, at the Presidential Villa, Abuja, Buhari said that it was disappointing to find that foreign loans obtained in line with signed agreements were moved from one project to another.
The President in a statement issued by his Senior Special Assistant on Media and Publicity, Garba Shehu, warned: “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.”
President Buhari was reacting to the diversion of a substantial part of the $1.005billion loan secured from the Chinese Exim Bank for the construction of a standard gauge rail line linking Lagos to Kano.
The Permanent Secretary had informed the President that only $400million of that loan remained with the Ministry of Finance.
The President regretted that government had over the years failed to meet its counterpart funding obligation on some projects, leaving such projects uncompleted or abandoned.
He added that there was a clear need to streamline, harmonize, and prioritize ongoing projects in the transportation sector.
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