President Muhammed Buhari has called for an explanation from the Ministry of Finance on the diversion of the foreign loans obtained for rail projects in the country.
Buhari was speaking at the Aso Rock Presidential Villa in Abuja on Monday shortly after a presentation to him by the permanent secretary of the Ministry of Transport, Alhaji Mohammed Bashar, who briefed him on the activities of the ministry.
Senior Special Assistant to the President on Media and Publicity Mallam Garba Shehu, in a statement, said Buhari sought the explanation while reacting to the specific instance of the diversion of a substantial part of the Chinese Exim Bank $1.005 billion loan which was obtained for the construction of a standard gauge rail line linking Lagos to Kano, but was moved elsewhere.
The presidential aide said the permanent secretary had revealed to President Buhari that only $400 million of that loan remained with the Ministry of Finance.
Shehu quoted Buhari as saying that it was disappointing to find out that foreign loans that were obtained in line with signed agreements were moved from one project to another.
He also quoted the president as warning: “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".
He said Buhari also regretted that government had, over the years, failed to meet its counterpart funding obligation on some projects, leading to such projects being left uncompleted or abandoned.
