Senate on Monday queried the Federal Ministry of Works and Housing over duplication of $434.7 million borrowing for emergency road rehabilitation and maintenance in the country.
The Minister of State, Works and Housing, Abubakar D. Aliyu had requested from the Senate Committee on Local and Foreign Debts to approve $434.7 million for emergency road rehabilitation and maintenance in the country.
But the Chairman of the Committee, Clifford Ordia quickly responded that the $434.7 million for the emergency works had been approved in the 2016- 2018 borrowing plan by the National Assembly, adding that there is no need for the committee to approve same request again.
Senator Clifford Ordia said, “Hon. Minister, it is good to be very precise in a situation like this. Like I have told you, as far as the National Assembly is concerned, that $434,700,000.00 has been approved by the National Assembly under the borrowing plan 2016 – 2018.
“We cannot change it now. If you want to remove it from your system, then you have to formally do what is called virement which will now come back again to the National Assembly for approval. It has been approved but they have not accessed it.
“I want to let you know that after that borrowing plan, we have been able to access some money on the institutional strengthening and implementation of policy reforms and the Abidjan-Lagos Corridor Highway Development Project Study. You may wish to confirm from the Federal Ministry of Finance for clarification. But for the one of $434,700,000.00 that has been approved by the National Assembly under the borrowing plan and we cannot change it here now.”
Another member of the committee, Senator Francis Alimikhena said what is expected of the Ministry is to brief the committee on the work status of the road enlisted for the amount, not to come up with the same request.
Based on documents obtained by our correspondent, the $434.7 million was part of $569, 950, 000 the Medium Term 2016-2018 External Borrowing (Rolling) plan approved by the Senate.
The $434.7 million will be financed by Africa Development Bank (ADB).
The document further revealed that the new loan submitted by President Muhammadu Buhari for the Ministry of Works and Housing in the 2018-2021 borrowing plan is $2.178,753, 419 for the construction of Lafia Bypass Road and Dualization of 9th Mile (Enugu)- Otulpo-Makurdi Road Project (Keffi Phase 11) and construction of Akwanga Jos-Bauchi-Gombe Carriage Project.
The loan will be obtained from China Exim Bank.
The Minister for state therefore responded that the agency will try as much as possible to interface with the Ministry of Finance, commending the committee for updating the Ministry that the money has been approved in the 2016-2018 borrowing plan.
Minister said,” I think the most important thing is that we have not gotten funding. What I mean is that we have not received money and these projects have not taken off.
“Like I said earlier, coming to you is not a one off coming. But these clarifications if we are not able to make it now, we will still come back with them and adjust them to suit the present condition.”
The Permanent Secretary of the Ministry , Babangida Hussein added: “The truth is that the roads you mentioned have been in our borrowing plan. They include Gombe-Biu road, Calabar Urban-Ekan-Ajaso road, Owerri-Amaraku-Okigwe road, Mokwa-Pezi-Tegina-Kaduna road, Katsina-Gibiya-Niger Republic Border road.
“We have not gotten money for them and no money has been released for the implementation and execution of these roads. Actually, the contracts have not even been awarded. So we are still waiting for funding before they can be procured and executed.”