The House of Reps says the Nigerian government officials signed empty repayment loan documents for the development of the Nigerian Rail sector even before the terms of the loans were negotiated.
On Monday, during the investigative hearing on the review of bilateral loan agreements and commercial contract agreements by ministries, Hon. Ossai Nicholas Ossai, the chairman, House Committee on Treaties, Protocols, and Agreements, stated that the Ministry of Transportation signed a commercial contract worth $33 billion dollars without a clear cut financial arrangement while most of other contracts agreement did not have local content clauses.
The house also revealed that some of the loans collected by the government were signed even before the terms were negotiated.
In contrast, the Minister of Transportation, Rotimi Amaechi denied the accusations, demanding that the Committee to furnish his Ministry with details of the contract to enable them make necessary response.
Hon. Ossai, however alleged that public officials’ are only desperate to obtain the loan without proper scrutiny of the agreements.
“we have also noted comments on the facts that National Assembly approved these loans, so why turn around to probe it now? Well, I remember stating in our last meeting here, that executive scrutiny and oversight by the legislature on government policies, programmes and projects can be done at the beginning, during implementation and at the end of implementation.
“From our experience, the MDAs sign these commercial agreements in billions of dollars, then go the President and Federal Executive Council for approval to execute including securing loan facilities through Ministry of Finance and Debt Management Office (DMO) and then proceed to negotiate the terms of these loans before coming back to Mr. President who then writes the National Assembly asking for approval for billions of dollars to do projects without attaching the negotiated loan and commercial contracts agreements details.
“This approach is the reason we have government representatives signing empty pages of loan agreements repayment schedule and other key documents required for the loan agreements to become effective. We have commercial contracts signed in US Dollars, while the loan agreements for the execution of the same contracts were signed in Chinese YUAN currency in Ministry of Communications and Digital Economy/Galaxy Backbone Limited.
“We have also seen references made in the commercial contracts regarding BOQs but none of‘ the commercial, contracts agreements submitted to us especially by Ministry of Transport has a single BOQ attachment.
“We have noticed from documents available to us that commercial contracts process signed by Federal Ministry of Transport alone within this is over $33 billion without any clear cut financing arrangements. Most of these commercial contracts agreements didn’t also have local content clauses and we’re witnessed by none properly designated and authorised officials.
“There are observable issues relating to procurement process, evidences of 15% advanced payments, payment of management fees, drawdown process and remittances and a whole lot of other matters, which we are strongly poised to ask questions on and hope to get honest answers that will finer tune the current process, plan for possible negotiation of some these governments in order to serve Nigerians better,” he said.
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