Socio-Economic Rights and
Accountability Project (SERAP) has sent a Freedom of Information (FoI) request
to Zainab Ahmed, Minister of Finance, Budget and National Planning, asking her
to urgently provide information on the total amount of money paid to
contractors from the $460 million loan obtained in 2010 from China to fund the
apparently failed Abuja Closed-Circuit Television (CCTV) contract.
SEEAP noted that the Federal
Government has continued to pay the loan.
The group urged Mrs Ahmed to
“disclose specific details of local contractors, if any, that have received
funds from the loan for the CCTV contract, reportedly awarded to China’s ZTE
Corporation, as well as the implementation status of the project.”
SERAP also sought: “disclosure of
details of repayment for other Chinese loans for allegedly failed projects
between 1999–2015, the status of any such projects, and details of local and
Chinese contractors involved in the projects. We urge you to clarify if the
N1.5 billion paid in 2010 for another apparently failed contract to construct
the headquarters of the Code of Conduct Bureau is part of another Chinese
loan.”
In the FoI request dated 25
October 2019 signed and made available to DAILY POST by SERAP deputy director
Kolawole Oluwadare, the organization said: “We are concerned that Nigerians are
being made to pay for the Chinese loans for apparently failed projects, and for
which they have not benefited in any way, shape or form. Transparency in the
spending of Chinese loans is good for everyone, as this would help to increase
the effectiveness, legitimacy, and contribution of the loans to the development
of public goods and services, and the general public interests.”
SERAP said it would take legal
action “if the requested information is not provided to us within 14 days of
the receipt and/or publication of this letter.
“Servicing Chinese loans for
failed projects is double jeopardy for Nigerians—they can neither see nor
benefit from the projects; yet, they are made to pay both the loans and the
accrued interests. The loans should never have been obtained in the first
place, as successive governments should have drawn funds from the over $670
million (N241.2 billion) budgeted annually as security votes, but which remain
synonymous with official corruption and unaccounted for.”
The organization expressed
“concern that the $460 million loan got for the failed Abuja CCTV project and
the N1.5 billion for the construction of CCB headquarters, which may be part of
another Chinese loan, may have been mismanaged or stolen, and in any case,
remain unaccounted for.
“SERAP is concerned that the
allegations of corruption involving the use of the funds and other similar
Chinese loans may be responsible for the security challenges confronting Abuja,
and the limited capacity of the CCB to discharge its constitutional and
statutory mandates to prevent corruption in asset declarations of presidents,
vice-presidents, governors, and other public officers, as prescribed by the
Nigerian constitution of 1999 (as amended).”
“As trustee of public funds,
SERAP contends that your Ministry has a legal duty to disclose details of
spending on the $460 million Abuja CCTV project and N1.5 billion for the
construction of CCB headquarters, to the beneficiaries (Nigerians) of the
trust, if and when called upon to do so. Any failure or refusal to provide the
information will also be clearly inconsistent with the letter and spirit of the
FoI Act.”
“If the allegations of
mismanagement and corruption in the execution of projects for which loans have
been obtained from China are true, such allegations will clearly amount to a
fundamental breach of national anticorruption laws and the country’s
international anticorruption obligations including under the UN Convention
against Corruption to which Nigeria is a state party. The facts relating to
these serious allegations require your immediate and urgent disclosure and
clarifications.
“As a key agency of government,
the Ministry of Finance, Budget and National Planning has a sacred duty to
ensure that the country’s loans including those obtained from China are
transparently and accountably used solely for the purposes for which the loans
are obtained, and for the effective development of public goods and services as
well as the general public interests.
“This implies providing strong
leadership in the efforts to curb public sector corruption, and to refer to
appropriate anticorruption agencies any allegations of corruption in which any
agencies of government and/or contractors may be involved. This leadership is
important if the Ministry is to enjoy the public trust and confidence essential
for its effectiveness and impact.
“We would like you to clarify if
the N1.5 billion mobilisation fee reportedly paid in September 2010 to
contractors for the construction of the headquarters of the CCB in Abuja is
part of another loan obtained from China.
“We are concerned that the CCB
building project is still in foundation level several years after payment of
N1.5 billion of the total contract fee of N3.5billion. However, the contract
was reportedly reviewed in October 2012 from N3.5 billion to N8.7 billion, with
the contract agreement signed on February 5, 2013.
“SERAP notes that the
consequences of corruption are felt by citizens on a daily basis. Corruption
exposes them to additional costs to pay for health, education and
administrative services. Another consequence of corruption is the growing inequality
in the country, where the privileged few have access to all public resources,
while the vast majority of citizens are deprived of access to public goods and
services.
“Also, corruption undermines
economic development of the country, trapping the majority of Nigerians in
poverty and depriving them of employment opportunities.”
SERAP therefore urged Mrs Ahmed
to:
Disclose the total amounts of
money, if any, that have been paid/released for the execution of projects for
which loans have been obtained from China.
Compel the contractors and
companies including Chinese companies that have been paid from the loans to go
back to sites and urgently complete the projects.
Suspend repayment of any Chinese
loans until there are specific guarantees by local and Chinese contractors and
companies that transparency and accountability will be ensured in the execution
of the affected projects
Disclose the amount of interests
so far paid on the loans obtained for the project which have allegedly not been
fully, properly or satisfactorily executed.
Refer any allegations of
corruption involving the execution of projects for which loans have been
obtained from China to the Economic and Financial Crimes Commission (EFCC) and
the Independent Corrupt Practices and Other Related Offences Commission (ICPC)
for investigation
Ensure that anyone involved in
alleged corruption in projects supported by China is brought to justice if
there is relevant and sufficient admissible evidence.
Set up processes and procedures
to safeguard Chinese loans and mitigate corruption risks in the spending of the
loans and to promote fair and free competition, consistent with Nigeria’s
anti-corruption legal frameworks and international standards
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