Babatunde Fashola
According to a Punch Metro report, the Senate on Wednesday began an
investigation into the alleged plan by the Ministry of Power, Works and
Housing to secure the release of $350m domiciled with the Nigerian
Sovereign Investment Authority to finance electricity projects.
The lawmakers specifically criticised the ministry for allegedly
spending $35m out of the money on power projects without approval by the
National Assembly.
Punch Metro reports that the decision followed the adoption of a
motion by Senator Dino Melaye (Kogi-West), at the plenary on Wednesday,
entitled, ‘Monumental Fraud in the Power Sector.’
Granting a prayer of the motion, the Senate mandated its Senate
Committees on Power and Public Accounts to invite the Minister of Power,
Works and Housing, Babatunde Fashola (SAN) “to render a detailed
account in terms of public funds spent on the Fast Power Projects (Afam
Fast Power Project in particular); evidence of feasibility study
indicating the viability of the projects; requisite appropriation by the
National Assembly as required by the Constitution; and the
controversial presidential approval for the projects.”
Another prayer was also granted to mandate same committees “to
investigate and consider summoning the Nigerian Sovereign Investment
Authority, the Nigerian Electricity Bulk Trading Company, etc., to
generally establish the status of the funds ($350m) and to report back
to the Senate within two weeks.”
The Senate also unanimously granted the prayer to “direct the
Federal Ministry of Power, Works and Housing to stop or suspend all
attempts or efforts to pressurise NSIA to release the sum of $350m meant
for NBET to the ministry for use on the controversial fast power
projects.”
President of the Senate, Bukola Saraki, in his remarks, noted that
the issues had previously been raised concerning the power sector in the
chamber.
He also noted that the law establishing the Nigerian Sovereign Investment Authority was due for a review.
“It is not having proper oversight. First, I am told that they
don’t require any confirmation for their appointment by the Senate;
there is no report to the Senate; and this is an organisation that is
controlling over $1.5bn and a lot of monies are being sent there; and it
is growing everyday with no oversight at all.
I think there is the need for relevant committees to duly carry out a diligent investigation on the activities of the NSIA,” Saraki said.
Saraki’s suggestion on the review of the NSIA Establishment Act was
presented as an additional prayer and it was unanimously granted.
In the motion, Melaye recalled that the Federal Government raised
$1bn through an Eurobond issue in July 2013, while the government
released $350m out of the sum to the Nigeria Electricity Bulk Trading
Company Plc as shareholder contribution to shore up its capitalisation.
Melaye said, “The Senate observes that this fund has been with
the NSlA since 2014 and has helped build market confidence especially
among new investors in the electricity market who see NBET’s positive
balance sheet as a form of security that their investments are safe and
that NBET has the wherewithal to meet its payment obligations.
“The Senate is alarmed that there is now a desperate attempt by
the Federal Ministry of Power, Works and Housing to retrieve this fund
($350m) and divert same to fund the so-called Fast Power Projects, which
the ministry has already spent $35m of public funds not appropriated by
the National Assembly.
“The Senate is further alarmed that since the introduction of
the Fast Power Project by the Federal Ministry of Power, Works and
Housing, a total sum of $35m has been spent by the ministry on Afam
Power Project alone to pay $29m to General Electric as cost for turbines
and $6m in consultancy fees to other entities respectively, all without
requisite feasibility study of the projects and appropriation by the
National Assembly as required by the Constitution.”
The senator said “a lot of questions are begging for answers” as
regards the $29m paid to General Electric and the $6m paid to other
consultants.
He asked who the consultants were and how were they procured. He
also asked if there was observance of due process in the award of the
contracts. He further asked why the transaction was cloaked in secrecy
and what was the true value of Afam Fast Power?
Melaye further asked, “Why is the Ministry engaging in
constructing new power plant while the government has several idle
plants that is seeking buyers for? Why is the ministry that is supposed
to be making policies, dabbling into constructing new power plants that
we have all agreed is better handled by the private sector?”
He added, “The Senate is concerned that the Federal Ministry of
Power, Works and Housing is determined to persist in this brazen
violation of the Constitution and extant laws on due process by
insisting that the NSIA should release the $350m meant for NBET on the
pretext of acting under a purported presidential approval.
“The Senate is convinced that there is an urgent need to bring
the .inistry to order regarding its planned diversion of the sum of
$350m meant for NBET and further demand a detailed account of
unappropriated public funds spent on the controversial fast power
projects.”
Seconding the motion, Senator Mohammed Hassan (Yobe-South) noted
that apart from the $350m released to NBET, the Transmission Company of
Nigeria also got $150m and the Nigerian National Petroleum Corporation
got $500m for some gas projects.
He said, “These monies will be maturing and they will be due
for return by next year. Our concern is on these contracts that were
awarded; I think that is the area that the Senate should look at. I will
want to recommend that the Senate Committee on Power should look at
that, not only ascertaining the credit balance of the $350m, we need to
find out what is the status of the $500m with NNPC and $150m with TCN. I
think that is the way to go.”
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