The Senate has commenced 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.
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.”
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.
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.
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