The House of Representatives Monday said it discovered that the Ministry of Transportation signed a commercial contract worth $33 billion without any clear cut financial arrangement while most of the contracts agreement did not have local content clauses.
Also, the house maintained that the Nigerian government officials signed empty repayment loan documents for the development of the Nigeria rail sector even before the terms of the loans were negotiated.
Chairman, House Committee on Treaties, Protocols and Agreements, Mr. Ossai Nicholas Ossai who disclosed this during the resumed investigative hearing on the review of bilateral loan agreements and commercial contracts agreements by Ministries, Departments and Agencies (MDAs) also said that some of the loans collected by the government were signed even before the terms were negotiated.
But the Minister of Transportation, Rotimi Amaechi, said there was no such contract existing in the Ministry as the only contract was the $1.6 billion loan for the Lagos/Ibadan rail project signed by the Buhari government and the about $800 million dollars loan signed by the Jonathan government.
He challenged the Committee to furnish his Ministry with details of the contract to enable them make necessary response.
Meanwhile, Mr. Ossai, who frowned at the misconceptions and misgivings on the ongoing legislative scrutiny of various agreements, alleged that public officials’ response for the facility are only desperate to obtain the loan without proper scrutiny of the agreements.
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“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.
Speaking further, he said, “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 authorized 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 stated.
