- Investigation not limited to SURE-P, will also cover similar federal government interventions in transportation sector
- Concern over repeated mismanagement of federal interventions to enhance urban mass transit projects, involving significant funds
- Only two beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, paid off their loans as of December 2015
A special committee within the House of Representatives, responsible for investigating the lack of success of federal mass transit projects, has announced its intention to reclaim loans from recipients who defaulted on the Subsidy Reinvestment and Empowerment Programme (SURE-P).
Chairman of the Committee, Afam Ogene (LP, Anambra), conveyed this decision through a statement on Monday, indicating that “1,179 vehicles were provided to beneficiaries through the scheme.” However, a substantial number of beneficiaries failed to repay the loans as agreed.
Ogene noted that the investigation will not only focus on the shortcomings of the SURE-P initiative but also on other comparable government interventions within the transportation sector at the federal level.
He expressed concern over the “repeated mismanagement” of significant federal interventions aimed at enhancing urban mass transit projects, emphasizing that these interventions involve substantial amounts of money.
“A total of 1,179 vehicles were released to the beneficiaries under the scheme, with a repayment plan covering four years. However, according to TIB, many of the beneficiaries defaulted and didn’t repay the loans.
“For instance, records show that as of 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.
“Perhaps because they see the funds as usual government bonanza. But this is where they get it wrong because they can’t be living large with our collective scarce resources while the people suffer as a result of poor mass transportation. The committee shall make the defaulters to account for every government money they have misapplied,” he said.
Mr Ogene said the past administration also made some interventions in the transportation sector hence the committee will investigate.
He said, “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 to purchase Mass Transit Vehicles.“
The SURE-P scheme was introduced by former President Goodluck Jonathan following the partial removal of the petroleum subsidy scheme in 2012. The government invested over N16 billion which was released through The Infrastructure Bank (TIB).