The immediate past Minister of Finance, Dr Ngozi Okonjo-Iweala on Sunday described as untrue allegations that a substantial part of the $1bn Chinese loan obtained for railway projects was diverted.

Okonjo-Iweala in a statement issued by her Media Adviser, Mr Paul Nwabuikwu, also explained that contrary to the allegation, the Kano-Lagos rail project is not part of the project listed for funding from the Chinese loan.

President Muhammadu Buhari had last Monday queried the Ministry of Finance over alleged diversion of foreign loans obtained for rail projects by the administration of former President Goodluck Jonathan.

Specifically, the President was seeking clarification on alleged diversion of a substantial part of a $1.005bn loan obtained from the Chinese Exim Bank for the construction of a standard gauge rail line linking Lagos to Kano.

The funds were said to have been moved elsewhere.

But while reacting to the allegation, Okonjo-Iweala who spearheaded the negotiation of the loan during her time as finance minister said the China-EximBank kept and disbursed funds for approved projects to contractors based on milestones.

The funds, she added, were not domiciled with Finance Ministry.

Giving a breakdown of the loan and how it was utilized, the minister said that $500m was used for the expansion of four International Airport Terminals in Lagos, Kano, Abuja and Port Harcourt, $500m for the Abuja Light Rail project, $984m for the Zungeru Hydro-electric power project and $100m for the Galaxy Backbone project

The minister in the statement noted that even if the alleged project was on the list of China-Exim Bank 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.

The statement reads in part, “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 EximBank for several strategic infrastructural projects across the country.

“In fact, it was the Lagos–Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China-EximBank. But in the end, no funds were assigned for the Lagos-Ibadan rail project by the China-EximBank.”

The statement explained that based on the terms of the loan, the procedure was that funds for approved loans remain in the China-EximBank.

The funds, according to her were released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by 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,” the statement added.
http://www.punchng.com/news/1bn-chinese-rail-loan-not-diverted-okonjo-iweala/

Waiting for comments

I trust she must reply in due time

If truly her points are investigated and found to be through, then I expect the Perm Sec to be on his way out of Govt. As the accounting officer of the ministry, he should even know this process better than the ministers

Madam ngobaby are you sure??

Lol NOI never disapoints!!! Buhari keep searching !!! You are yet to find any dirt on her!!! The APC are just desperate to nail NOI and just keep making a fool of themselves.First Oshiomhole now the illiterate himself.

By the time she is through with you guys you will know there is difference between a secondary school drop out and a harvard 1st class graduate

The funds, according to her were released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by the Federal Ministry of Transport, based on the agreed milestones.

Chinese government loans in Africa, are NEVER given as cash to any country or government, also 99.9% of the contractors are Chinese with all raw materials imported from China. In a country like Nigeria where illiterates reign supreme, stories like Chinese loans diversion are repeated by the very ones, that know its not true.

I just love okonjo

NOI never disappoints... Always setting the record straight

Splashme:
With due respect, our president seems not to have the right academic capacty to govern Nigeria. His grapse of issues is very diappointing

The man just moves about throwing up figures in the media without facts

This Government is a disaster in waiting.

Buhari's so called probe is simply a masturbation. It is useless and can never be helpful. Buhari is a disaster and i am making it clear that Buhari should resign.

This woman should just come back and clear her name from this dirt and mess she got herself involved in Shekena.However, she claimed the money was not diverted why was it used for another project (Airport project) has she claimed instead of what it was intended for (railway project) in this first place this woman is jail bound!!!!

sammyj:
This woman should just come back and clear her name from this dirt and mess she got herself involved in Shekena.However, she claimed the money was not diverted why was it used for another project (Airport project) has she claimed instead of what it was intended for (railway project) in this first place this woman is jail bound!!!!

Pls read the text again.

sammyj:
This woman should just come back and clear her name from this dirt and mess she got herself involved in Shekena.However, she claimed the money was not diverted why was it used for another project (Airport project) has she claimed instead of what it was intended for (railway project) in this first place this woman is jail bound!!!!

comprehension is your problem

Buhari no get brain, that is the reason people with brain just visited him to not just probing but investigate first