The Delta Government says its Commercial Tricycle Scheme has been over-subscribed by N40 million by members of Commercial Motorcycles and Tricycles Riders Association in the state.
Mr Ben Igbakpa, the Commissioner for Transport, disclosed this to the News Agency of Nigeria (NAN) on Tuesday in Asaba.
The commissioner denied that the state collected money from members of the association, but failed to deliver.
He said that the truth was that the number of tricycles available was over-subscribed by the association.
He told NAN that the state government acquired 1,250 tricycles in the first batch to test-run the scheme, adding that those who were not successful would get a refund.
“We have sold all the 1,250 tricycles we procured.
“We did it on first-come-first-served basis. When we finished allocating the available tricycles, we discovered that payments made were beyond what we have.
“I think the reason why it was over-subscribed is because we made the government account number for the payment available to the union.
“Everyone was paying into it without caring about the number of tricycles available for sale.
“Now, we have a case of over-subscription by as much as N40 million and the people are pressing that because they have paid, government must provide tricycles for them.
“We cannot do that because we have exhausted what we have and the only way out is to refund the money to those who paid it in,” he said.
Igbakpa said that although more tricycles would be received by the government in two weeks time, the government would refund the depositors and ask them to re-apply.
He said the association encouraged its members to make direct payments for the tricycles, not minding the number of tricycles available for sale.
The commissioner said that the tricycles were over-subscribed because the price was subsidised by the government.
The commissioner said that each of the tricycles was sold for N150,000 from initial price of N200,000.
NAN reports that the state government introduced tricycles to replace motorcycles which it banned from operating in towns in the state with effect from Nov. 1. (NAN)