The House of Representatives Ad-hoc Committee to investigate Failure of Federal Mass Transit Schemes in Nigeria since 1999, has decried the serial mismanagement of huge government investments in Urban Mass Transit Schemes.
The Chairman of the Committee Mr Afam Ogene, in a statement, warned that the Committee would get to the roots of the mismanagement of the funds that runs into billions of naira ploughed into the scheme by successive governments, without commensurate impact since 1999.
He expressed displeasure at the seeming reluctance by line ministries and agencies, in releasing 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.
Ogene, who represents Ogbaru Federal Constituency in Anambra state, 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 Programe 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. But according to TIB, many of the beneficiaries defaulted and didn’t repay the loans.
“For instance, records show that as at December 2015, only two of the beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, liquidated their loans. Most of the beneficiaries are yet to pay as stipulated in the contractual agreements signed between them and TIB.
The chairman of the committee also said on October 4th 2016, the then Minister of Industry,Trade and Investment, Okechukwu Enelamah announced that the federal government had also set up a N25 billion revolving loan scheme to enable transport companies in the country purchase Mass Transit Vehicles.
In view of these developments, especially with documented abysmal results, the lawmaker assured that his ad-hoc committee has been mandated to look into all these developments, with a view to finding out what went wrong. Who did what. And why the people are being made to suffer as a result of what may likely be individual, corporate or institutional failures.