FOI: SERAP Seeks Details Of Spending On Failed $460m CCTV, Other Chinese Loans

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
“urgently provide information on the total amount of money paid to
contractors from the $460 million loan obtained in 2010 from China
to fund the apparently failed Abuja Closed-Circuit Television
(CCTV) contract, the loan which the Federal Government has
continued to re-pay.”

SERAP urged Mrs Ahmed to “disclose specific details of local
contractors, if any, that have received funds from the loan for the
CCTV contract, reportedly awarded to China’s ZTE Corporation, as
well as the implementation status of the project.”

SERAP also sought: “disclosure of details of repayment for other
Chinese loans for allegedly failed projects between 1999–2015, the
status of any such projects, and details of local and Chinese
contractors involved in the projects. We urge you to clarify if the
N1.5 billion paid in 2010 for another apparently failed contract to
construct the headquarters of the Code of Conduct Bureau is part of
another Chinese loan.”

In the FoI request dated 25 October 2019 and signed by SERAP
deputy director Kolawole Oluwadare, the organization said: “We are
concerned that Nigerians are being made to pay for the Chinese
loans for apparently failed projects, and for which they have not
benefited in any way, shape or form. Transparency in the spending
of Chinese loans is good for everyone, as this would help to
increase the effectiveness, legitimacy, and contribution of the
loans to the development of public goods and services, and the
general public interests.”

SERAP said it would take legal action “if the requested
information is not provided to us within 14 days of the receipt
and/or publication of this letter.”

SERAP said: “Servicing Chinese loans for failed projects is
double jeopardy for Nigerians—they can neither see nor benefit from
the projects; yet, they are made to pay both the loans and the
accrued interests. The loans should never have been obtained in the
first place, as successive governments should have drawn funds from
the over $670 million (N241.2 billion) budgeted annually as
security votes, but which remain synonymous with official
corruption and unaccounted for.”

The organization expressed “concern that the $460 million loan
got for the failed Abuja CCTV project and the N1.5 billion for the
construction of CCB headquarters, which may be part of another
Chinese loan, may have been mismanaged or stolen, and in any case,
remain unaccounted for.”

The FoI request read in part: “SERAP is concerned that the
allegations of corruption involving the use of the funds and other
similar Chinese loans may be responsible for the security
challenges confronting Abuja, and the limited capacity of the CCB
to discharge its constitutional and statutory mandates to prevent
corruption in asset declarations of presidents, vice-presidents,
governors, and other public officers, as prescribed by the Nigerian
constitution of 1999 (as amended).”

“As trustee of public funds, SERAP contends that your Ministry
has a legal duty to disclose details of spending on the $460
million Abuja CCTV project and N1.5 billion for the construction of
CCB headquarters, to the beneficiaries (Nigerians) of the trust, if
and when called upon to do so. Any failure or refusal to provide
the information will also be clearly inconsistent with the letter
and spirit of the FoI Act.”

“If the allegations of mismanagement and corruption in the
execution of projects for which loans have been obtained from China
are true, such allegations will clearly amount to a fundamental
breach of national anticorruption laws and the country’s
international anticorruption obligations including under the UN
Convention against Corruption to which Nigeria is a state party.
The facts relating to these serious allegations require your
immediate and urgent disclosure and clarifications.”

“As a key agency of government, the Ministry of Finance, Budget
and National Planning has a sacred duty to ensure that the
country’s loans including those obtained from China are
transparently and accountably used solely for the purposes for
which the loans are obtained, and for the effective development of
public goods and services as well as the general public
interests.”

“This implies providing strong leadership in the efforts to curb
public sector corruption, and to refer to appropriate
anticorruption agencies any allegations of corruption in which any
agencies of government and/or contractors may be involved. This
leadership is important if the Ministry is to enjoy the public
trust and confidence essential for its effectiveness and
impact.”

“We would like you to clarify if the N1.5 billion mobilisation
fee reportedly paid in September 2010 to contractors for the
construction of the headquarters of the CCB in Abuja is part of
another loan obtained from China.”

“We are concerned that the CCB building project is still in
foundation level several years after payment of N1.5 billion of the
total contract fee of N3.5billion. However, the contract was
reportedly reviewed in October 2012 from N3.5 billion to N8.7
billion, with the contract agreement signed on February 5,
2013.”

“SERAP notes that the consequences of corruption are felt by
citizens on a daily basis. Corruption exposes them to additional
costs to pay for health, education and administrative services.
Another consequence of corruption is the growing inequality in the
country, where the privileged few have access to all public
resources, while the vast majority of citizens are deprived of
access to public goods and services.”

“Also, corruption undermines economic development of the
country, trapping the majority of Nigerians in poverty and
depriving them of employment opportunities.”

SERAP therefore urged Mrs Ahmed to:

1. Disclose the total amounts of money, if any, that have been
paid/released for the execution of projects for which loans have
been obtained from China;

2. Compel the contractors and companies including Chinese
companies that have been paid from the loans to go back to sites
and urgently complete the projects;

3. Suspend repayment of any Chinese loans until there are
specific guarantees by local and Chinese contractors and companies
that transparency and accountability will be ensured in the
execution of the affected projects;

4. Disclose the amount of interests so far paid on the loans
obtained for the project which have allegedly not been fully,
properly or satisfactorily executed;

5. Refer any allegations of corruption involving the execution
of projects for which loans have been obtained from China to the
Economic and Financial Crimes Commission (EFCC) and the Independent
Corrupt Practices and Other Related Offences Commission (ICPC) for
investigation;

6. Ensure that anyone involved in alleged corruption in projects
supported by China is brought to justice if there is relevant and
sufficient admissible evidence;

7. Set up processes and procedures to safeguard Chinese loans
and mitigate corruption risks in the spending of the loans and to
promote fair and free competition, consistent with Nigeria’s
anti-corruption legal frameworks and international standards