The Minister of Transportation, Mr Rotimi Amaechi has observed that the investigations of loans taken by the Federal Government could send wrong signal to the lenders, putting the construction of railway lines and other projects at risk.
Amaechi made the observation at an investigative hearing organised by the House of Representatives Committee on Treaties, Protocols and Agreements in Abuja.
He said that the investigation could cause foreign partners to withdraw such loan facilities which have negative effect on Nigeria’s infrastructural development.
The minister said that he has raised the concerns over the ongoing investigation with the Speaker of the house, Rep. Femi Gbajabimila.
The House of Representatives Committee on Treaties, Protocols and Agreements, Tuesday grilled Amaechi over the $500m loan to be sourced from the Export-Import Bank of China for the construction of railway lines and other projects.
The committee demanded the details of the contracts as well as the agreements signed between the Ministry of Transportation and the CCECC on the Abuja-Kaduna, Lagos-Ibadan, Ibadan-Kaduna and Kaduna-Kano rail lines.
It asked Amaechi to provide the details of the agreement between the ministry and ZTE (Nig) Ltd for the provision of community actions and signalling equipment for the Itakpe-Ajaokuta-Warri Railway line as well as the details of the agreement between the Federal Ministry of Transport and the China Railway Construction Company International in respect of the Itakpe-Abuja line/New Port in Warri project.
The loan agreement was signed between the Federal Government of Nigeria and the Export-Import Bank of China on September 5, 2018.
Amaechi, in his presentation, said if the probe continued, it might jeopardise the loan.
“My fear is that if this probe continues, at the end of the day, some sections of the country may suffer.
“In oversighting, there is what is called national interest. But in asking questions on this loan now, it may jeopardize this loan. The Lagos- Ibadan (rail project) is not completed; the Ibadan- Kano is not completed.
“Let the government of China not say there’s a disagreement in government on this loan and so we’ll not give this loan.
“So, I appeal to the chairman to give us from now till December when we’re likely to secure the loan. Then, from January, February, you can resume this investigation”, Amaechi pleaded.
But the chairman of the committee, Ossai Nicholas Ossai, dismissed Amaechi’s plea, saying he should return on August 17 with the Minister of Communications and Digital Economy, Isa Pantami and the Minister of Finance, Zainab Ahmed, to give the details of the contract agreements.
“We’re looking for transparency, which is what the Chinese government wants. So, we’ll like to have the pre-payment plans for these loans.
“Most of these contracts signed by the government are not known by the National Assembly as provided for in the DMO Act; and we’re supposed to know. We need to know how many Chinese are involved in these projects and their expertise.
“In the documents we’ve seen, there are variations in interest rates. Why did you sign these documents at the same time with different interest rates”, Ossai queried Amaechi.
In another development, the Federal Inland Revenue Service, the Accident Investigation Bureau, the Federal Road Safety Commission and the National Planning Commission are to appear before the House of Representatives Committee on Public Accounts over the disbursement of N182 billion given to them as grants by the Federal Government.
The committee also summoned the National Pension Commission, the Nigeria Customs Service, the Nigeria Air Force and the Ministry of Defence for failing to appear before based on Audit Queries by the Office of the Auditor-General of the Federation.
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