President Muhammed Buhari on Monday demanded explanation from the Ministry of Finance on the whereabouts of the foreign loans obtained for rail projects.
The loan was reportedly siphoned under the watchful eyes of immediate past Minister of Finance, Dr. Okonjo Iweala.
Buhari’s directive followed the alleged diversion of a substantial part of the loan of USD1.005 billion from the Chinese Exim Bank, meant for the construction of a standard gauge rail line linking Lagos and Kano States.
Relatively, the Permanent Secretary, Ministry of Transport by the Permanent Secretary, Alhaji Mohammed Bashar informed the President that only $400 million was left of the loan.
Bashar made the revelation during a presentation of his ministry’s activities to president Buhari at the presidential villa.
Reacting, President Buhari said that it was unfortunate to find that foreign loans obtained in line with signed agreements were moved from one project to another.
“I hope that due process was followed before such diversions were carried out. Taking money from one project to another has to be done properly,” he warned.
Vanguard reports that the President regretted that government had, over the years, failed to meet its counterpart funding obligation on some projects, leading to such projects being left uncompleted or abandoned.
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