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N634.8b Earmarked For Federal Roads Maintenance Diverted

The Senate on Tuesday raised alarm on the diversion of over N634.8 billion into unknown accounts.

The fund was earmarked for the maintenance of federal roads across the country.

The Chairman of the Senate Committee on Federal Road Maintenance Agency, Senator Magnus Abe, made this known at the 2018 budget defence of the agency.

Abe vowed to uncover the mismanagement of the money deducted from sale of fuel to maintain federal roads in Nigeria.

He added: “Everybody gets their own shares from sale of fuel, but the fund meant to maintain federal roads were diverted to unknown account.

“The agency has only received the fund once since the law has been made.

“The funding of federal roads was taken consideration when the fuel price was agreed upon.

“The money is collected from Nigerians.

“Everybody gets their own shares except FERMA.

“Who is taking the money?
“We don’t know before now.

“We are going to seek clear mandate to investigate what has happened to the fund.

“This is not the question of taxation, but the money that has been collected that would end in an unknown destination.

“We will use legislative means to find out how this money is being collected and who collected it.”

It was gathered that the Senate had ordered the Petroleum Products Pricing Regulatory Agency since 2016 to remit the fund into FERMA purse, but declined.

In his presentation before the panel, the Acting Managing Director of FERMA, Engr. Nurudeen Rafindadi, disclosed that the agency is indebted to the tune of N15 billion to contractors, pleading with the lawmakers to capture the debt in the 2018 budget.

Rafindadi said the agency’s debt profile is huge and there is the need to settle contractors that have worked for the agency.

He said: “FERMA’s debt profile is huge and there will be need to settle outstanding debt in order to encourage contractors back to site.

“Moreover, with reference to the recent public hearing by the House committee on FERMA, the Honorable Minister of Power, Works and Housing in his submission strongly suggested that the indebtedness of the agency now assessed in the total sum of N15.7 billion be captured as a line item in the proposed budget to further strengthen the agency in its quest for holistic approach to road maintenance.”

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