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Senate probes Abacha, Obasanjo billion-dollar rail projects
February 20, 2008 | posted by Mobolaji Aluko (Archives)

VANGUARD

Senate probes Abacha, Obasanjo billion-dollar rail projects

Written by Emmanuel Aziken

Wednesday, 20 February 2008

THE Senate Committee on Public Accounts yesterday commenced a probe of the $8.3 billion dollar rail modernization project asking on why the immediate past administration entered into the project without completing the $528 million rehabilitation project started by the Abacha regime. Committee members led by the chairman, Senator Ahmad Lawan were particularly concerned that the same Chinese company, CCECC was awarded the $8.3 billion modernization contract without showing evidence of performance in the earlier contract given it by the Abacha administration.

Yesterday’s hearing involved officials of the Federal Ministry of Transportation led by the Permanent Secretary, Mrs. Ammuna Lawan Ali.

Committee members also flayed reports that the rehabilitation project awarded by the Abacha regime was 80 per cent completed.

Senator Lawan promised that the Committee would take inventory of the supplies made by the Chinese company.
“This Committee will go out to inspect even the accidented wagons. We want to see them because they cant disappear, they are not organic so they cant decay and I am sure CCECC will not take them away because they are our own,’’ Senator Lawan said.

Making her submission yesterday, Mrs. Ali said that Abacha administration in 1995 awarded the $528 million rail rehabilitation project to CCECC saying that the project was abandoned after 80 per cent completion. She said payments made to the company so far amounted to $446 million.

The company she said stopped work in 2003. However, the company was in 2006 given the $8.3 billion rail modernization project with a mobilization of N9.48 billion given in local and foreign currency payments.

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