An ad hoc committee of the House of Representativeswhich investigates the failure of federal public transportation plans, says it will recover Subsidy Empowerment and Reinvestment Program (SURE-P) loans from delinquent recipients.
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 defaulted on the loan.
He stated that the investigation will look at the failure of the SURE-P scheme and other similar interventions in the transport sector by the federal government.
Ogene denounced the “serial mismanagement” of huge federal government interventions in urban public transport systems, noting that the interventions run into billions of naira.
“A total of 1,179 vehicles were delivered to the beneficiaries of the plan, with a reimbursement plan that covers four years. However, according to TIB, many of the beneficiaries defaulted and defaulted on the loans.
“For example, records show that in December 2015, only two of the beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, paid off their loans. Most of the beneficiaries are still required to pay as stipulated in the contractual agreements signed between them and TIB.
“Maybe because they see the funds as a regular government bonanza. But this is where they go wrong, because they can’t live large with our meager collective resources while people suffer as a result of poor public transportation. The committee will hold defaulters accountable for every government money they have embezzled,” he said.
Ogene said that the past administration also made some interventions in the transport sector, so the committee will investigate everything.
He said: “The then Minister for Industry, Trade and Investment, Okechukwu Enelamah, announced that the federal government had also set up a Naira 25 billion revolving loan scheme to enable the country’s transport companies to purchase public transport vehicles.” .
SURE-P intervention
The SURE-P scheme was introduced by former President Goodluck Jonathan following the partial removal of the oil subsidy scheme in 2012. The government invested over 16 billion naira which was released through the Infrastructure Bank (TIB).
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SURE-P was mandated to turn money saved from fuel subsidies into jobs, roads, and other people-oriented programs. However, the implementation of the policy was 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 latest national broadcast, promised to invest more than 100 billion naira in the transport sector. Recipients of the funds must repay the loan within 60 days.
“Part of our program is to deploy buses in state and local governments for public transportation at a much more affordable price. We have planned to invest 100 billion naira from now until March 2024 to procure 3,000 units of CNG-powered 20-seater buses,” he said.
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