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Fashola’s claims on 2017 budget misleading – NASS

The Senate on Saturday warned Minister of Works, Housing and Power, Mr Babatunde Fashola, to desist from spreading falsehood on the 2017 Budget with regards to
projects under his ministry.

It said that in passing the Appropriation Bill, the legislators worked and applied equity in provision for new and outstanding projects across the country.

In a statement by its spokesperson, Sen. Sabi Abdullahi, in Abuja, the upper chamber said that Fashola did not give the public details about the Lagos-Ibadan Expressway, which was on private finance initiative from beginning.

It said that Bureau of Public Procurement (BPP) and the Federal Executive Council, in 2013, approved the reconstruction, rehabilitation and expansion of the expressway on Public-Private-Partnership (PPP) basis, “using private finance initiative”.

“The Federal Government provided about 30 per cent of the funding while the balance shall be provided by the private sector.

“The project was on course for completion by end of 2017 when the private finance initiative was being implemented, with over 30 per cent completion rate attained as at early 2015.

“But, in a blatant disregard for existing agreements, constituted authorities and extant laws, Fashola on assumption of office, got the government through the ministry to start voting money for the implementation of the project.

“Even, as at last year, the 2016 Appropriation Act voted N40 billion for the project on the insistence of the ministry and only N26 billion was released.

“If we had known, the rest N14 billion could have been allocated to other critical roads across the country,” it said.

It added that due to concerns and in the spirit of consensus-building and effective stakeholder engagement, the leadership of the Senate met with relevant stakeholders, including the Ministries of Works, and Finance.

According to it, it was agreed that we should give the Private Finance Initiative a chance to complement government’s resources in the delivery of critical infrastructure across the country.

“Hence, in this year’s budget, we have engaged with the government and private sector groups, who have assured that they will resume funding of the project.

“So, we only provided the fund in the budget that would ensure that work does not stop before the funds from the private sector start coming in.

“It is our view that the Federal Government cannot fund the reconstruction and maintenance of all the 34, 000 kilometres of roads under its care,” the senate said.

It explained that what was necessary was the need for private funds for some of the roads, particularly those with high potential of attracting private investors.

It said, “With private sector finance initiative, the rehabilitation of the road can be completed on time because full funding will be provided and there will be more certainty.

“The minister’s statement is in bad taste.”

The statement said that the National Assembly acted in the national interest to ensure that equity and fairness were achieved in the distribution of projects.

The senate said that it also ensured that all sections of the country had representation in the national budget as guaranteed by the Constitution.


Similarly, the House of Representatives said that Fashola peddled “inaccuracies, misleading and calculated mischief” about the 2017 budget.
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