NIGERIA: FORMER FINANCE MINISTER, OKONJO-IWEALA DENIES THAT $600M CHINESE RAIL LOAN WAS DIVERTED

The Minister of Finance under former President Goodluck Jonathan, Dr. Ngozi Okonjo-Iweala on Sunday debunked the allegations going around that a substantial part($600 million)of the $1 billion Chinese loan meant for railway projects was diverted.
Okonjo-Iweala through her Media Adviser, Mr. Paul Nwabuikwu said contrary to the allegations being peddled, the Kano-Lagos rail project was not part of the project listed for funding by the Chinese loan.
President Buhari queried the Ministry of Finance last Monday on the diversion of loans meant for railway projects during Jonathan's administration.
Okonjo Iweala who actually negotiated the loan during her tenure as Finance Minister informed that the China-Exim Bank disbursed funds to contractors  based on milestones.
The funds were not domiciled with the Finance Ministry.
Giving a breakdown of how the loan was utilised, Okonjo Iwuala said, $500million was used for expansion of four International Airport terminals in Lagos, Abuja, Portharcourt and Kano; $500million for Abuja light rail project; $984million for the Zungeru Hydro-electric power project and $100 million for Galaxy Backbone project.
Okonjo-Iweala reiterated that there was no iota of truth in the allegations of diversion being peddled around and that initially it was Lagos-Ibadan rail project that was proposed in the initial application for the China Exim Bank loan but in the end no funds were assigned by China Exim Bank for that particular project.