The House of Representatives on Monday condemned the serial mismanagement of humongous government’s investments in Urban Mass Transit Schemes since 1999.
The Chairman of the Ad-hoc Committee to Investigate Failure of Federal Mass Transit Schemes in Nigeria, Hon. Afam Victor Ogene, in a statement issued in Abuja, warned that the Committee would get to the roots of the mismanagement of the funds that run into billions of naira throughout successive governments since 1999, without commensurate impact.
He expressed displeasure at the seeming reluctance of line ministries and agencies to release documents relating to public funds expended on previous Mass Transit Schemes.
“This becomes important especially at this period of grueling multifaceted economic challenges that have heightened the sufferings of the people and lowered the living conditions of many,” he said.
Hon. Ogene, who represents Ogbaru Federal Constituency in Anambra state and who is also the Labour Party caucus leader in the House, disclosed that in 2012 alone, over N16 billion was released through The Infrastructure Bank (TIB) for the purchase of busses for Public Mass Transit, from the Subsidy Reinvestment and Empowerment Programme (SURE-P) funds, under the administration of former President Goodluck Jonathan, from the Public Mass Transit Revolving Fund, PMTF.
“A total of 1,179 vehicles were released to the beneficiaries under the scheme, with a repayment plan covering four years. However, according to TIB, many beneficiaries defaulted and didn’t repay the loans.
“For instance, records show that as of December 2015, only two beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, liquidated their loans. Most beneficiaries have not paid as stipulated in the contractual agreements signed between them and TIB.
“Perhaps because they see the funds as usual government bonanza. But this is where they get it wrong because they can’t live large with our collective scarce resources while the people suffer due to poor Mass Transportation.
“The Committee shall make the defaulters to account for every government money they have misapplied.”
The chairman of the committee also alleged that on the 4th October 2016, the then Minister of Industry, Trade and Investment, Okechukwu Enelamah, announced that the Federal Government had also set up N25 billion revolving loan scheme to enable transport companies in the country to purchase Mass Transit Vehicles.
Just a year ago, in August 2022, the immediate past Minister of State for Transport revealed that the former President, Muhammadu Buhari, had approved the establishment of yet another Mass Transit Scheme and a committee for its implementation.
In view of these developments, especially with documented abysmal results, Hon. Ogene said that his ad-hoc committee has been mandated to look into all these developments to find out what went wrong. Who did what? And why the people are being made to suffer due to what may likely be individual, corporate or institutional failures.
The Committee’s brief covers road transport, waterways and rail transportation in Nigeria.
. TheWitness
