Senate summons Adeosun, Amaechi others over alleged diversion of $600m Eurobond proceeds

The Senate has summoned the Minister of Finance, Kemi Adeosun to appear before it to explain why part of the $600 million loan obtained to revive the power sector was diverted by the Federal Government to remodel four airports across the country.

According to the Senate, there was $600 million Eurobond from the Chinese Government for the rehabilitation of the power sector, out of which $100 million was used as counterpart funding for the remodeling of Lagos, Abuja, Kano and Port Harcourt Airports.

Also to appear before the Matthew Urhoghide-led Joint Senate Committee on Public Accounts and Power, Steel Development and Metallurgy are the Minister of Transportation, Rotimi Amaechi and the Director- General, Debt Management Office (DMO) Patience Oniha.

Speaking on Thursday in Abuja when the Permanent Secretary, Ministry of Transportation, Sabiu Zakari appeared before the Committee, Urhoghide asked them to appear before the Committee next week Thursday to explain the rational behind the movement of such loans from its original purpose to a fresh one.

According to the Senate, there was the need to establish the desirability of the loan, just as it said that when the loan was being sourced by the Federal Government, it was very clear what it was for and not as counterpart funding to finance Chinese loan for the airports.

Urhoghide said: “We need to establish the desirability of the loan, it was for power sector, to develop the sector, it was for the Nigerian Electricity Bulk Trading Company (NBET) Transmission Company of Nigeria (TCN) among others. Aviation was not in the picture, Nigerian National Petroleum Corporation (NNPC) was used to secure the loan. Aviation did not apply for it, not in the list of agencies to benefit. There was no Presidential approval, Aviation was not listed as a beneficiary”.

The Senate said that it would want to know whether there was a formal letter from the Ministry of Aviation to the Finance Ministry to finance the counterpart funding, even as it said that it would want to know whether the process got the blessings of the National Assembly.

According to Senate, the Ministry must furnish it with vital information on the update of the project, how much has been spent on it among others.

Responding, Zakari who promised to come with the needed information next week, said that the $100 million was a loan that was given to the ministry which must be paid back.

 

OWEDE AGBAJILEKE, Abuja