156 Views

How N16billion Mass Transit Sure-P Fund Was Squandered

Over N16 billion of Subsidy Reinvestment and Empowerment Programme (SURE-P) funds released by the Goodluck Jonathan administration in 2012 for the Public Mass Transit Revolving Fund (PMTF) was squandered, the International Centre for Investigative Reporting icirnigeria.org has found.
The fund, administered as a revolving loan by The Infrastructure Bank (TIB) was given out in form of mass transit vehicles to 31 beneficiaries, mostly commercial transport operators. A total of 1,179 vehicles were released to the beneficiaries under the scheme, with a repayment plan covering four years.
But four years after the vehicles were disbursed, only two of the beneficiaries-ABC Transport PLC and Young Shall Grow Transport Limited, have fully repaid their loans. Most of the other beneficiaries are yet to pay back as stipulated in the contractual agreements signed between them and the TIB.
The bank lists as “chronic defaulters” 15 companies and organizations, owing a total of N4,586,088,671.63 as at December 2015. That figure would have gone up as at the time of filing this report.
The loan defaulters include National Union of Road Transport Workers (NURTW), which got N2.3 billion; Nigerian Association of Road Transport Owners (NARTO), N403,487,239; Road Transport Employers Association of Nigeria (RTEAN), N370,738,460; Greenline Bus, N370,500,000; Global Ginikana, N295,290,190 and Classic Link Express, N123,500,000.
Those familiar with the disbursement say the Jonathan administration gave out the loans largely as political patronage, with many of the recipient believing that they were actually helping the government out of the ditch it ran into after the fuel subsidy protests of January 2012.
Investigations by the icirnigeria.org revealed that the scheme was compromised by stakeholders, including the beneficiaries, TIB and the Bureau of Public Procurement (BPP).
Most of the beneficiaries who defaulted in loan repayment cited supply of poor quality vehicles by TIB as major reason for their inability to pay back. While the beneficiaries requested Toyota, Mercedes and Ashley Leyland high capacity buses, they were supplied Hyundai and IVM Innoson vehicles, which they said is unsuitable for commercial use.
Unlike Mercedez, Leyland and Toyota vehicles, the loan defaulters claim spare parts for Hyundai and Innoson vehicles are also not easily available in the country, a situation that forced many of the beneficiaries to park the vehicles less than a year after delivery.
Najim Yasin, National President of NURTW, said the organization rejected the vehicles provided by TIB but was persuaded to take them as a show of support to the Jonathan administration which was then facing a debilitating country-wide workers strike over the cut in fuel subsidy.
Mr. Yasin said of the 234 mass transit buses given to the NURTW, less than 65 were Toyota vehicles, the others were Hyundai and Innoson buses that broke down within the first month of operation.
Communications between the NURTW and TIB, seen by this website, show that the organization complained about the poor quality of the vehicles and the fact that there were no spare parts to fix those that broke down.
Mr. Yasin said the complaints were ignored by TIB.
In a letter dated May 22, 2012, the NURTW wrote to TIB to reject all the Hyundai and Innoson buses given to it by the bank, claiming that they were not good for transportation business.
Also, in a reply to a letter from the TIB for settlement of the N4.7 billion loan given to NURTW dated July1, 2015, the NURTW wrote: “We reiterate the fact that our good intentions to defray the loan have been hampered and challenged by the fact that these vehicles are mostly grounded due to their inferior and sub-standard qualities. Others are accidented, and despite the fact that we have sent several claims for insurance cover/payment on the buses, these claims have not been paid by the consortium of insurance companies solely appointed by you.”
TREAN, another beneficiary, said it requested TIB to supply it 100 Toyota and Ashley Leyland buses but was given only 10 Toyota buses and 32 Hyundai and Innoson buses, all at the cost of N370.7 million.
The National President of the association, Musa Shehu, told the icirnigeria.org that most of the Hyundai and Innoson buses broke down within the first month because of the rigour of travelling on bad roads, while the others could not last a year, thereby making it impossible to repay the loan.
Mr. Shehu gave our reporter copies of the letters his association wrote TIB to supply them the remaining 58 vehicles and make sure they were Toyota or Ashley Leyland buses so that they could off-set the loan on the bad vehicles with money from the good ones. He said although TIB promised to give them the vehicles the bank never kept the promise.
On May 24, 2012, RTEAN wrote to TIB, complaining that some of the buses were “faulty and draining our pocket.” The association said many of the vehicles they got developed faults within days or weeks after they were delivered.
“Most of the vehicles giving us severe problem are Innoson and Hyundai models,” it said in the letter, asking that the buses be replaced.
In another letter dated July 19, 2012, the association complained that it could not continue to meets its repayment obligation under the agreement as some of the buses given to its members were breaking down daily.
“These buses can hardly be used for 3 days without developing some sort of fault or the other. There is no week that passes by without these buses going to a mechanic’s workshop,” the association wrote.
“We hereby appeal that these Innoson buses should be retracted by you and in exchange, release to us Hummer buses in order for us to effectively run our commercial businesses…”
Both NURTW and RTEAN said those who got the Toyota buses, who are few, met their contractual obligations because the buses are still on the road.
“But those who got Hyundai and Innoson cannot pay back because the vehicles have been parked due to lack of spare parts.  While the former has paid only N350 million till date, the later has paid back less than N30 million,”Mr. Shehu stated.
But investigations also show that the transporters were also wont to complain about just any vehicle given to then, even Toyota buses. For instance, in a letter written to TIB by RTEAN in September, 2012, the association also complained about a Toyota Coaster bus which it said developed faults three months after
It was supplied. “This particular vehicle (a Toyota Coaster bus), which has not been on the road for more than three months, has been associated with all sorts of problems which include perpetual break down, faulty internal parts of the vehicle and high cost of maintenance.”
source: Tori.ng

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

#BBNaija: Why Cee-C Is Bbetter Than President Buhari – Reno Omokri
Entertainment
60 views
Entertainment
60 views

#BBNaija: Why Cee-C Is Bbetter Than President Buhari – Reno Omokri

PH - April 21, 2018

Former aide to Ex-President, Goodluck Jonathan, Reno Omokri,in his latest shade on President Buhari has mentioned that a housemate on the Big Brother Naija 2018 reality TV…

Why I Didn’t Do Well At Chelsea – Liverpool Star, Mohamed Salah
Sports
101 views
Sports
101 views

Why I Didn’t Do Well At Chelsea – Liverpool Star, Mohamed Salah

MT - April 20, 2018

While speaking in an exclusive interview ahead of Liverpool’s clash at West Brom on Saturday, on Sky Sports Premier League, Mohammed Salah admitted that he is focusing on…

“Why Soldiers Burnt Houses In Benue State” – Army Spokesperson
Shocking
103 views
Shocking
103 views

“Why Soldiers Burnt Houses In Benue State” – Army Spokesperson

MT - April 20, 2018

The Nigerian army has taken responsibility for the attack, which resulted in burning down of houses in a Benue community on Thursday. The Army said the attack…

Meet Vivian Chiologi, John Shittu’s Wife Who Got Married At 50, Gave Birth At 51
Best of Nigeria
120 views
Best of Nigeria
120 views

Meet Vivian Chiologi, John Shittu’s Wife Who Got Married At 50, Gave Birth At 51

MT - April 20, 2018

My darling Viv, today I celebrate you and I thank God for your life and strength. What a testimony your life has become. You met and fell…

Lazy Youths: Why Buhari Should Apologize And Be Forgiven – Shehu Sani
Politics
86 views
Politics
86 views

Lazy Youths: Why Buhari Should Apologize And Be Forgiven – Shehu Sani

MT - April 20, 2018

SHEHU Sani, Senator representing Kaduna Central, has urged President Muhammadu Buhari to apologize over his remarks about Nigerian Youths. While answering a question at the Commonwealth Business…

19-Year-Old Udeh Precious Wins 2018 Sisi Oge Cultural Pageant (Photos)
Best of Nigeria
92 views
Best of Nigeria
92 views

19-Year-Old Udeh Precious Wins 2018 Sisi Oge Cultural Pageant (Photos)

MT - April 20, 2018

19 year old Miss Udeh Precious has emerge winner of the 2018 Sisi Oge Cultural Pageant. The actress and model beat 19 other contestants in the competition…

Nigeria Uninterruptible Power Supply To Reach 4.7% In 2024
Business
79 views
Business
79 views

Nigeria Uninterruptible Power Supply To Reach 4.7% In 2024

PH - April 20, 2018

Nigeria Vision 20:2020 is set to be a major development plan for the country to accelerate growth of commercial and industrial sectors over the coming years. Further,…

Nigeria’s Brent Crude Hits $73.79 per Barrel
Business
85 views
Business
85 views

Nigeria’s Brent Crude Hits $73.79 per Barrel

PH - April 20, 2018

An improvement in Nigeria’s oil earnings is on course as prices held firm on Friday near three-year highs reached earlier this week as ongoing Organisation of Petroleum…

Debbie Rise’s Sister Tee-Rise Releases Gospel single “First Loved Me”
Entertainment
88 views
Entertainment
88 views

Debbie Rise’s Sister Tee-Rise Releases Gospel single “First Loved Me”

PH - April 20, 2018

Temilolu Olurishe also known as Tee-Rise is a young lady with a desire to express her worship to God in her songs while she helps others enjoy…

WATCH: Chimamanda Adichie Talks #MeToo, Feminism and Gay Rights on CNN
Best of Nigeria
87 views
Best of Nigeria
87 views

WATCH: Chimamanda Adichie Talks #MeToo, Feminism and Gay Rights on CNN

PH - April 20, 2018

Chimamanda Ngozi Adichie was on CNN to discuss the #MeToo movement, feminism, and rights of LGBT people with Christiane Amanpour. The writer who revealed earlier this week…

19-Year-Old Udeh Precious emerges Winner of the 2018 Sisi Oge Cultural Pageant
Art, History and Culture
85 views
Art, History and Culture
85 views

19-Year-Old Udeh Precious emerges Winner of the 2018 Sisi Oge Cultural Pageant

PH - April 20, 2018

The 19-year-old model, actress and show host, Udeh Precious, beat stiff competition from 19 other contestants to emerge winner of the 2018 Sisi Oge Cultural Pageant. Precious,…

BBNaija: Tobi Bakre Is Not A Lazy Nigerian Youth; Check Out His 5 Professions..
Best of Nigeria
89 views
Best of Nigeria
89 views

BBNaija: Tobi Bakre Is Not A Lazy Nigerian Youth; Check Out His 5 Professions..

MT - April 20, 2018

Shared Via IG With Caption .. Nigerians are one of the most resourceful and hardworking people in the world. From generation to generation, this has remained true.…

Veteran Actress, Ireti Doyle Shares How She Almost Lost A Job “For Being The Wrong Skin Colour”
Entertainment
81 views
Entertainment
81 views

Veteran Actress, Ireti Doyle Shares How She Almost Lost A Job “For Being The Wrong Skin Colour”

PH - April 20, 2018

Veteran actress Ireti Doyle, in a post on her Instagram page, is speaking about colorism. In her post, she details how she almost lost a major gig…

1771 Cases of Domestic Violence, 138 Against Men, Recorded in 10 Months in Lagos
Shocking
75 views
Shocking
75 views

1771 Cases of Domestic Violence, 138 Against Men, Recorded in 10 Months in Lagos

PH - April 20, 2018

The Lagos State Domestic Violence & Sexual Violence Response Team (DVSRT) recorded 138 cases against men between May 2017 and March 2018. This was revealed by the…

5 Women-Owned Tech Spaces that VP Osinbajo Could Have Visited During #VPTourOfTech – Mary Olushoga
Business
77 views
Business
77 views

5 Women-Owned Tech Spaces that VP Osinbajo Could Have Visited During #VPTourOfTech – Mary Olushoga

PH - April 20, 2018

Why are women innovators largely ignored in Nigeria’s male-dominated technology spaces? Why didn’t Vice President Osinbajo visit any women-owned spaces during the highly popular and attention-grabbing #VPTourofTech?…

#ReadyToBeatMalaria: Chimamanda Adichie Joins Bill Gates, Prince Charles at Malaria Summit in London
Food and Health
87 views
Food and Health
87 views

#ReadyToBeatMalaria: Chimamanda Adichie Joins Bill Gates, Prince Charles at Malaria Summit in London

PH - April 20, 2018

Nigerian writer Chimamanda Ngozi Adichie gave a speech at the Malaria Summit on Wednesday, 18th of April,in London, England. The Malaria Summit was held to urge Commonwealth…

Mace Theft: How Ike Ekweremadu Redeemed Lawmakers’ Image
Politics
123 views
Politics
123 views

Mace Theft: How Ike Ekweremadu Redeemed Lawmakers’ Image

PH - April 20, 2018

A member of House of Representatives, Rep. Joseph Akinlaja (Ondo-PDP), has said Deputy President of the Senate, Mr Ike Ekweremadu’s wisdom saved Nigeria a greater embarrassment on…

Why Federal Government Wants Rail Line Between Nigeria And Niger – Amaechi
Business
99 views
Business
99 views

Why Federal Government Wants Rail Line Between Nigeria And Niger – Amaechi

PH - April 20, 2018

The Minister of Transportation, Rotimi Amaechi, has explained that the rail line from Kano in Nigeria to Maradi in Niger Republic was mainly to encourage business owners…

Loading...