Court orders FG to account for $460m Chinese loan spent on failed Abuja CCTV project

A federal high court in Abuja has ordered the administration of President Muhammadu Buhari to account for the use of a $460 million Chinese loan to fund the “failed” Abuja closed-circuit television (CCTV) project.

The order was issued by Judge Emeka Nwite while delivering judgement in the freedom of information suit ‘FHC/ABJ/CS/1447/2019′ filed by Socio-Economic Rights and Accountability Project (SERAP).

The judge ordered the government to publish the total amount of money paid to Chinese and local companies and contractors, as well as specific details about the companies’ and contractors’ identities and the project’s implementation.

In December 2019, SERAP sued Finance Minister Zainab Ahmed for failing to disclose information and specific documents on the total amount of money paid to contractors from the $460 million loan obtained from China in 2010 to fund the Abuja CCTV project.

Ahmed stated that Nigeria was servicing the loan and that she had no further information on the project’s status.

Nwite agreed with SERAP that there was a reasonable cause of action against the government in his decision.

In his judgement, Nwite agreed with SERAP that there was a reasonable cause of action against the government.

“Accounting for the spending of the $460 million Chinese loan is in the public’s interest. It will be inimical for the court to refuse SERAP’s application for judicial review of the government’s action,” he said.

“The Minister of Finance is in charge of the finances of the country and cannot by any stretch of imagination be oblivious of the amount of money paid to the contractors for the Abuja CCTV contract and the money meant for the construction of the headquarters of the Code of Conduct Bureau.”

The judge directed the government to provide “details clarifying whether the sum of N1.5 billion paid for the failed contract to construct the Code of Conduct Bureau headquarters was part of another loan obtained from China.”

Nwite issued a mandamus order compelling the federal government, through the minister of finance, “to provide and make available to SERAP information on the total amount of money paid to contractors, with specific details of the names of companies local contractors involved, from the $460 million loan obtained from China by the Federal Government of Nigeria in 2010 to fund the failed Abuja CCTV contract.”

The judgment reads: “An order of mandamus is hereby made directing and compelling the government (through the Minister of Finance) to provide the details of the local companies and Chinese contractors that have received funds from the $460 million loan for the finance of the Abuja CCTV contract as well as details of the status of implementation of the project.

“An order of mandamus is hereby made directing and compelling the government (through the Minister of Finance) to provide the details clarifying whether the sum of N1.5 billion mobilisation fee reportedly paid to the contractors for the construction of the Headquarters of the Code of Conduct Bureau in Abuja was part of another loan from China.”