{"id":70129,"date":"2019-10-27T15:11:10","date_gmt":"2019-10-27T14:11:10","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=70129"},"modified":"2019-10-27T15:11:10","modified_gmt":"2019-10-27T14:11:10","slug":"foi-serap-seeks-details-of-spending-on-failed-460m-cctv-other-chinese-loans","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/foi-serap-seeks-details-of-spending-on-failed-460m-cctv-other-chinese-loans\/","title":{"rendered":"FoI: SERAP seeks details of spending on failed $460m CCTV, other Chinese loans"},"content":{"rendered":"<div id=\"m2218624130604675630\" class=\"mail-message expanded\">\n<div class=\"mail-message-header spacer\"><\/div>\n<div class=\"mail-message-content collapsible zoom-normal mail-show-images \">\n<div class=\"clear\">\nScio-Economic Rights and Accountability Project (SERAP) has sent a<br \/>\nFreedom of Information (FoI) request to Mrs Zainab Ahmed, Minister of<br \/>\nFinance, Budget and National Planning, asking her to &#8220;urgently provide<br \/>\ninformation on the total amount of money paid to contractors from the<br \/>\n$460 million loan obtained in 2010 from China to fund the apparently<br \/>\nfailed Abuja Closed-Circuit Television (CCTV) contract, the loan which<br \/>\nthe Federal Government has continued to re-pay.&#8221;<\/p>\n<p>SERAP urged Mrs Ahmed to &#8220;disclose specific details of local<br \/>\ncontractors, if any, that have received funds from the loan for the CCTV<br \/>\ncontract, reportedly awarded to China&#8217;s ZTE Corporation, as well as the<br \/>\nimplementation status of the project.&#8221;<\/p>\n<p>SERAP also sought: &#8220;disclosure of details of repayment for other Chinese<br \/>\nloans for allegedly failed projects between 1999&#8211;2015, the status of<br \/>\nany such projects, and details of local and Chinese contractors involved<br \/>\nin the projects. We urge you to clarify if the N1.5 billion paid in 2010<br \/>\nfor another apparently failed contract to construct the headquarters of<br \/>\nthe Code of Conduct Bureau is part of another Chinese loan.&#8221;<\/p>\n<p>In the FoI request dated 25 October 2019 and signed by SERAP deputy<br \/>\ndirector Kolawole Oluwadare, the organization said: &#8220;We are concerned<br \/>\nthat Nigerians are being made to pay for the Chinese loans for<br \/>\napparently failed projects, and for which they have not benefited in any<br \/>\nway, shape or form. Transparency in the spending of Chinese loans is<br \/>\ngood for everyone, as this would help to increase the effectiveness,<br \/>\nlegitimacy, and contribution of the loans to the development of public<br \/>\ngoods and services, and the general public interests.&#8221;<\/p>\n<p>SERAP said it would take legal action &#8220;if the requested information is<br \/>\nnot provided to us within 14 days of the receipt and\/or publication of<br \/>\nthis letter.&#8221;<\/p>\n<p>SERAP said: &#8220;Servicing Chinese loans for failed projects is double<br \/>\njeopardy for Nigerians\u2014they can neither see nor benefit from the<br \/>\nprojects; yet, they are made to pay both the loans and the accrued<br \/>\ninterests. The loans should never have been obtained in the first place,<br \/>\nas successive governments should have drawn funds from the over $670<br \/>\nmillion (N241.2 billion) budgeted annually as security votes, but which<br \/>\nremain synonymous with official corruption and unaccounted for.&#8221;<\/p>\n<p>The organization expressed &#8220;concern that the $460 million loan got for<br \/>\nthe failed Abuja CCTV project and the N1.5 billion for the construction<br \/>\nof CCB headquarters, which may be part of another Chinese loan, may have<br \/>\nbeen mismanaged or stolen, and in any case, remain unaccounted for.&#8221;<\/p>\n<p>The FoI request read in part: &#8220;SERAP is concerned that the allegations<br \/>\nof corruption involving the use of the funds and other similar Chinese<br \/>\nloans may be responsible for the security challenges confronting Abuja,<br \/>\nand the limited capacity of the CCB to discharge its constitutional and<br \/>\nstatutory mandates to prevent corruption in asset declarations of<br \/>\npresidents, vice-presidents, governors, and other public officers, as<br \/>\nprescribed by the Nigerian constitution of 1999 (as amended).&#8221;<\/p>\n<p>&#8220;As trustee of public funds, SERAP contends that your Ministry has a<br \/>\nlegal duty to disclose details of spending on the $460 million Abuja<br \/>\nCCTV project and N1.5 billion for the construction of CCB headquarters,<br \/>\nto the beneficiaries (Nigerians) of the trust, if and when called upon<br \/>\nto do so. Any failure or refusal to provide the information will also be<br \/>\nclearly inconsistent with the letter and spirit of the FoI Act.&#8221;<\/p>\n<p>&#8220;If the allegations of mismanagement and corruption in the execution of<br \/>\nprojects for which loans have been obtained from China are true, such<br \/>\nallegations will clearly amount to a fundamental breach of national<br \/>\nanticorruption laws and the country&#8217;s international anticorruption<br \/>\nobligations including under the UN Convention against Corruption to<br \/>\nwhich Nigeria is a state party. The facts relating to these serious<br \/>\nallegations require your immediate and urgent disclosure and<br \/>\nclarifications.&#8221;<\/p>\n<p>&#8220;As a key agency of government, the Ministry of Finance, Budget and<br \/>\nNational Planning has a sacred duty to ensure that the country&#8217;s loans<br \/>\nincluding those obtained from China are transparently and accountably<br \/>\nused solely for the purposes for which the loans are obtained, and for<br \/>\nthe effective development of public goods and services as well as the<br \/>\ngeneral public interests.&#8221;<\/p>\n<p>&#8220;This implies providing strong leadership in the efforts to curb public<br \/>\nsector corruption, and to refer to appropriate anticorruption agencies<br \/>\nany allegations of corruption in which any agencies of government and\/or<br \/>\ncontractors may be involved. This leadership is important if the<br \/>\nMinistry is to enjoy the public trust and confidence essential for its<br \/>\neffectiveness and impact.&#8221;<\/p>\n<p>&#8220;We would like you to clarify if the N1.5 billion mobilisation fee<br \/>\nreportedly paid in September 2010 to contractors for the construction of<br \/>\nthe headquarters of the CCB in Abuja is part of another loan obtained<br \/>\nfrom China.&#8221;<\/p>\n<p>&#8220;We are concerned that the CCB building project is still in foundation<br \/>\nlevel several years after payment of N1.5 billion of the total contract<br \/>\nfee of N3.5billion. However, the contract was reportedly reviewed in<br \/>\nOctober 2012 from N3.5 billion to N8.7 billion, with the contract<br \/>\nagreement signed on February 5, 2013.&#8221;<\/p>\n<p>&#8220;SERAP notes that the consequences of corruption are felt by citizens on<br \/>\na daily basis. Corruption exposes them to additional costs to pay for<br \/>\nhealth, education and administrative services. Another consequence of<br \/>\ncorruption is the growing inequality in the country, where the<br \/>\nprivileged few have access to all public resources, while the vast<br \/>\nmajority of citizens are deprived of access to public goods and<br \/>\nservices.&#8221;<\/p>\n<p>&#8220;Also, corruption undermines economic development of the country,<br \/>\ntrapping the majority of Nigerians in poverty and depriving them of<br \/>\nemployment opportunities.&#8221;<\/p>\n<p>SERAP therefore urged Mrs Ahmed to:<\/p>\n<p>1.\u00a0 \u00a0 Disclose the total amounts of money, if any, that have been<br \/>\npaid\/released for the execution of projects for which loans have been<br \/>\nobtained from China;<\/p>\n<p>2.\u00a0 \u00a0 Compel the contractors and companies including Chinese companies<br \/>\nthat have been paid from the loans to go back to sites and urgently<br \/>\ncomplete the projects;<\/p>\n<p>3.\u00a0 \u00a0 Suspend repayment of any Chinese loans until there are specific<br \/>\nguarantees by local and Chinese contractors and companies that<br \/>\ntransparency and accountability will be ensured in the execution of the<br \/>\naffected projects;<\/p>\n<p>4.\u00a0 \u00a0 Disclose the amount of interests so far paid on the loans obtained<br \/>\nfor the project which have allegedly not been fully, properly or<br \/>\nsatisfactorily executed;<\/p>\n<p>5.\u00a0 \u00a0 Refer any allegations of corruption involving the execution of<br \/>\nprojects for which loans have been obtained from China to the Economic<br \/>\nand Financial Crimes Commission (EFCC) and the Independent Corrupt<br \/>\nPractices and Other Related Offences Commission (ICPC) for<br \/>\ninvestigation;<\/p>\n<p>6.\u00a0 \u00a0 Ensure that anyone involved in alleged corruption in projects<br \/>\nsupported by China is brought to justice if there is relevant and<br \/>\nsufficient admissible evidence;<\/p>\n<p>7.\u00a0 \u00a0 Set up processes and procedures to safeguard Chinese loans and<br \/>\nmitigate corruption risks in the spending of the loans and to promote<br \/>\nfair and free competition, consistent with Nigeria&#8217;s anti-corruption<br \/>\nlegal frameworks and international standards<\/p>\n<\/div>\n<\/div>\n<div class=\"mail-message-footer spacer collapsible\"><\/div>\n<\/div>\n<div id=\"conversation-footer\" class=\"spacer\"><\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Scio-Economic Rights and Accountability Project (SERAP) has sent a Freedom of Information (FoI) request to Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning, asking her to &#8220;urgently provide&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":56720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-70129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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