SERAP wrote Tinubu, concerned that $1.5 billion World Bank loan to 36 countries, $3 billion Chinese loan to the Federal Government may have been diverted

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to “order the Attorney General of the Federation and the Minister of Justice Mr. Lateef Fagbemi, SAN and appropriate anti-corruption agencies to immediately and thoroughly investigate the disbursement of the $1.5 billion World Bank loan obtained by 36 states and Abuja for poverty alleviation and social protection across the states.”

SERAP stated, “Suspects of corruption and mismanagement must be prosecuted properly, if there is sufficient evidence and the proceeds of corruption must be returned in full.”

SERAP also urged him to “direct Mr Fagbemi and relevant anti-corruption agencies to immediately investigate the alleged mismanagement of the $3.121 billion Chinese loan obtained by the Federal Government.”

SERAP urged him to “instruct the Economic and Financial Crimes Eradication Commission (KPK) and the Corruption and Other Related Crimes Eradication Commission (KPK) to jointly track and monitor the disbursement of the World Bank loan of $1.5 billion to 36 states in Nigeria and Abuja.”

In an open letter dated August 10, 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organization said: “Ensuring accountability for World Bank and Chinese loan disbursements will build trust in democratic institutions with the ultimate goal of strengthening the rule of law.”

SERAP stated, “Impunity for corruption in the management of World Bank loans and Chinese loans will continue as long as high-ranking public officials are not punished for the crimes they are accused of.”

SERAP also said, “By following up on these allegations and bringing evidence to court, the truth will be revealed and justice will be upheld to the fullest.”

According to SERAP, “There are reports that a $1.5 billion World Bank loan to 36 states and Abuja and a $3 billion Chinese loan obtained by the Federal Government may have been misused or diverted, and in any case remain unknown.”

The letter reads in part: “Investigating and prosecuting allegations of corruption and mismanagement in the disbursement of World Bank and Chinese loans would be fully consistent with the Nigerian Constitution, and the country’s international anti-corruption obligations.”

“We note that while a governor may enjoy immunity from arrest and prosecution, he does not enjoy immunity from investigation. Any criminal charges against a sitting governor can and should be investigated pending the governor leaving office and losing his immunity.

“The results of the investigation could also be the basis for filing an impeachment lawsuit against the governor.

“Your government has a legal obligation to ensure accountability for the disbursement of loans obtained from the World Bank and China. SERAP is concerned about the continued lack of transparency and accountability in the management of World Bank and Chinese loans obtained by the states and the Federal Government.

“We would appreciate it if the suggested steps are taken within 7 days of receipt and/or issuance of this letter. If we have not heard from you by then, SERAP will consider appropriate legal action to compel your government to comply with our request in the public interest.

READ ALSO: SERAP files lawsuit against CBN over missing Rp100 billion banknotes

“SERAP is concerned by allegations of corruption and mismanagement over many years in the disbursement of World Bank and Chinese loans obtained by 36 Nigerian states and the Federal Government and the entrenched impunity of the perpetrators.

“These allegations have undermined the ability of government at all levels to address the debilitating poverty and economic disparities across the states and the Federal Capital Territory.

“Allegations of corruption and mismanagement in the use of these and other loans have left already impoverished residents unable to meet their minimum survival needs.

“Preventing corruption in the use of World Bank loans and other loans is a serious and legitimate public interest. There is a legitimate public interest in ensuring justice and accountability for alleged corruption and mismanagement in the administration of these loans.

“According to our information, the World Bank on December 15, 2020 approved a $1.5 billion loan for 36 states in Nigeria and Abuja for social protection and strengthening the COVID-19 response at the state level. The loan aims to help the states and Abuja build a resilient post-COVID19 recovery and reduce poverty.

“Specifically, the loan aims to improve access to basic education, quality water and sanitation services; improve primary health care; and increase the coverage and effectiveness of social assistance programs, promote women’s empowerment and reduce maternal and child mortality rates across the state.

“The World Bank loan of $1.5 billion is for two projects. The first is the Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) which aims to help improve access to social transfers and basic services, as well as provide grants to poor and vulnerable households. The project is financed through a $750 million International Development Association (IDA) credit.

“The second is the State Fiscal Transparency, Accountability and Sustainability for Results (SFTAS) Program, which aims to help improve efficiency in spending, strengthen revenue mobilization and enhance accountability in the management of public resources to strengthen the COVID-19 response at the state level.

“The project is financed through an International Development Association (IDA) credit of $750 million.”

“According to the Debt Management Office, Nigeria’s total borrowings from China were USD$3.121 billion, as of March 31, 2020. The USD$3.121 billion loan was for 11 projects including the Nigerian Railway Modernization Project (Idu-Kaduna section); and the Abuja Light Rail Project.

“Others include the Nigeria Airports Four Terminal Expansion Project (Abuja, Kano, Lagos and Port Harcourt), the Nigeria Railway Modernization Project (Lagos-Ibadan section) and the Abuja – Keffi-Makurdi Road Rehabilitation and Upgrade Project.

“According to the Debt Management Office, Nigeria’s total public debt, including external and domestic debt, increased by ₦24.33 trillion in just three months, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion) as of March 31, 2024.

“The debt represents external and domestic borrowings obtained by the Federal Government, 36 state governments and the Federal Capital Territory (FCT).”

SERAP article on Tinubu, fears $1.5 billion World Bank loan to 36 states, $3 billion Chinese loan to FG may have been diverted appeared first on Latest Nigeria News | Headlines from Ripples Nigeria.