Transit: Panel of Representatives Committed to Recovering SURE-P Loans from Carriers and Other Beneficiaries
A House of Representatives ad hoc committee investigating the failure of federal transit programs has said it will recover Grant Empowerment and Reinvestment Program (SURE-P) loans from defaulting beneficiaries.
Committee Chairman Afam Ogene (LP, Anambra) in a statement on Monday said that “1,179 vehicles have been delivered to beneficiaries under the scheme,” but most of the beneficiaries have not not repaid the loan.
He said the inquiry would examine the failure of the SURE-P program and other similar federal government interventions in the transportation sector.
Mr. Ogene has denounced the “serial mismanagement” of huge federal government interventions in urban mass transit projects, noting that the interventions are in the billions of Naira.
“A total of 1,179 vehicles have been returned to beneficiaries under this program, with a repayment plan spanning four years. However, according to TIB, many recipients defaulted and failed to repay their loans.
“For example, records show that in December 2015 only two of the recipients, ABC Transport PLC and The Young Shall Grow Transport Limited, liquidated their loans. Most of the beneficiaries have not yet paid as stipulated in the contractual agreements signed between them and TIB.
“Perhaps because they see these funds as a usual government handout. But that's where they're wrong, because they can't live big on our scarce collective resources while people suffer from poor public transit. The committee will hold defaulters to account for every government money they misused,” he said.
Mr. Ogene said the previous administration also made some interventions in the transportation sector, so the committee would investigate all of them.
He said: “The then Minister of Industry, Trade and Investment, Okechukwu Enelamah, announced that the Federal Government had also put in place a revolving loan program of 25 billion naira to enable transport companies in the country to purchase public transport vehicles. » SURE-P procedure
The SURE-P program was introduced by former President Goodluck Jonathan following the partial removal of the oil subsidy program in 2012. The government has invested over N16 billion which was released through the Infrastructure Bank (TIB).
READ ALSO: Court sentences former permanent secretary to four years in prison for SURE-P fraudSURE-P was mandated to convert the money saved from fuel subsidies into jobs, roads and other people-oriented programs. However, the implementation of this policy has been marred by allegations of corruption.
The current administration is also embarking on another intervention in the transport sector following the removal of the oil subsidy regime in May.
President Bola Tinubu, in his last national broadcast, promised to invest more than 100 billion naira in the transport sector. Fund recipients must repay the loan within 60 days.
“Part of our program is to deploy buses across states and local governments for mass transit at a much more affordable fare. We have planned to invest N100 billion by March 2024 to procure 3,000 units of CNG-powered 20-seater buses,” he said. Support the honest and credible journalism of PREMIUM TIMES
A House of Representatives ad hoc committee investigating the failure of federal transit programs has said it will recover Grant Empowerment and Reinvestment Program (SURE-P) loans from defaulting beneficiaries.
Committee Chairman Afam Ogene (LP, Anambra) in a statement on Monday said that “1,179 vehicles have been delivered to beneficiaries under the scheme,” but most of the beneficiaries have not not repaid the loan.
He said the inquiry would examine the failure of the SURE-P program and other similar federal government interventions in the transportation sector.
Mr. Ogene has denounced the “serial mismanagement” of huge federal government interventions in urban mass transit projects, noting that the interventions are in the billions of Naira.
“A total of 1,179 vehicles have been returned to beneficiaries under this program, with a repayment plan spanning four years. However, according to TIB, many recipients defaulted and failed to repay their loans.
“For example, records show that in December 2015 only two of the recipients, ABC Transport PLC and The Young Shall Grow Transport Limited, liquidated their loans. Most of the beneficiaries have not yet paid as stipulated in the contractual agreements signed between them and TIB.
“Perhaps because they see these funds as a usual government handout. But that's where they're wrong, because they can't live big on our scarce collective resources while people suffer from poor public transit. The committee will hold defaulters to account for every government money they misused,” he said.
Mr. Ogene said the previous administration also made some interventions in the transportation sector, so the committee would investigate all of them.
He said: “The then Minister of Industry, Trade and Investment, Okechukwu Enelamah, announced that the Federal Government had also put in place a revolving loan program of 25 billion naira to enable transport companies in the country to purchase public transport vehicles. » SURE-P procedure
The SURE-P program was introduced by former President Goodluck Jonathan following the partial removal of the oil subsidy program in 2012. The government has invested over N16 billion which was released through the Infrastructure Bank (TIB).
READ ALSO: Court sentences former permanent secretary to four years in prison for SURE-P fraudSURE-P was mandated to convert the money saved from fuel subsidies into jobs, roads and other people-oriented programs. However, the implementation of this policy has been marred by allegations of corruption.
The current administration is also embarking on another intervention in the transport sector following the removal of the oil subsidy regime in May.
President Bola Tinubu, in his last national broadcast, promised to invest more than 100 billion naira in the transport sector. Fund recipients must repay the loan within 60 days.
“Part of our program is to deploy buses across states and local governments for mass transit at a much more affordable fare. We have planned to invest N100 billion by March 2024 to procure 3,000 units of CNG-powered 20-seater buses,” he said. Support the honest and credible journalism of PREMIUM TIMES
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