Reps off to China - To probe N8.3bn Lagos-Kano rail
By Idowu Samuel
Sunday, November 23, 2008


AMID suspicion over the N8.3 billion awarded by the past civilian government for the modernisation of Lagos-Kano rail line, the House of Representatives is set to take a trip to China to investigate the Chinese contractor handling the contract.


There have been reports of alleged mismanagement of the contract sum, especially the $250 million paid by the federal government as upfront to the Chinese contractor; China Civil Engineering Construction Corporation (CCECC).

Members of the House Committee on Land Transport led by Honourable Benard Udoh will be taking off to China today to ascertain the competence of CCECC in handling the rail line project.

The House member had during the week visited the corporate headquarters of CCECC on an oversight function in a bid to determining reason behind the slow pace of work on the rail line project.

The project co-ordinator, Mr. Karl Leo, had told the representatives that it was in a good mood to execute the contract in line with the terms of agreement CCECC had with the federal government on it.

The co-ordinator lamented that much as his company was eager to construct a world-class rail line for Nigeria, its efforts had been slowed down by pausity of fund caused by the federal government and non-release of landed property for the rail line construction by state governments involved.

Leo recounted the tales of woe his company had been encountered in handling the rail project in Nigeria, noting that rather than being paid the sum of $1.13 billion being the agreed 10 per cent of the mobilisation fee, the government only paid 3 per cent, amounting to only $250 million.

Leo said his company had even invested more than $250 million on the project in order to keep it going in anticipation of further release of fund by the federal government.

As a mark of the CCECC commitment to the rail-line project, the co-ordinator disclosed that the company had purchased equipment worth more than $100 million, and hence, conducted the legislators round its premises where the equipment were kept lying fallow.

The Chinese company said it was not happy that the government was stalling progress on the rail line project, more so after tying down resources on it in the interest of the terms of agreement it had with the government.

The co-ordinator also lamented that since the federal government called for re-scopping of the project, it has encountered difficultly in communicating with the officials on the next line of action.

http://odili.net/news/source/2008/nov/23/607.html

these Chinese will continue ripping us off, until our leaders learn to think with their brains instead of their stomachs

My question is why should they all travel to China to investigate that?. They can still get the information the need by phone or at least send one person. This people are wasting our money like water.

ziddy:

these Chinese will continue ripping us off, until our leaders learn to think with their brains instead of their stomachs

You should be asking OBJ what pact he had with them.

N40bill satellite dead

$8.1bill railway to no where.

If they have build 'primary schools' this would done something for our education.

You should be asking OBJ what pact he had with them.

N40bill satellite dead

$8.1bill railway to no where.

If they have build 'primary schools' this would done something for our education.

all I know is that Obj did all he can to bring that nation out of the sewer.

RedHotChic:

all I know is that Obj did all he can to bring that nation out of the sewer.

This is a joke, right?

in as much as china is an emerging world power, our leaders will do will to tread carefully when dealing with them.
people that can give their own children poisonous milk to drink, can never have your best interest at heart ooo. if u have to dine with the devil use a long spoon and in this case i would advice a very loooong spoon.

it's always the same kind of stories emanating from Nigeria. when will Nigerians ever decide to actually make the nation good for the generality of the populace and not for the thieving few who occupy top positions?

The idiots are actually flying to china in order to get evidence. We'lll see what they come back with. I do business with people all over the world without leaving my desk and out reps need to go to China to investigate a deal brokered in Nigeria!