Senate Passes Motion To Investigate The Alleged Misappropriation Of $35million

The President of The Senate - Federal Republic of Nigeria Senator Bukola Saraki

Today, the Senate passed a Motion to investigate the alleged misappropriation of $35million on projects in the power sector.

As this is the 4th of 5th time that this Senate is addressing issues that are raised on the power sector, we have directed the Senate Public Accounts Committee to lead the investigation so that we can truly get to the bottom of this issue.

Additionally, we have mandated the Senate Committee on Finance to investigate the actions of the the Nigerian Sovereign Investment Authority (NSIA) inclusive of the issues raised in this Motion. It is important that we examine how policy decision in this organization are made; ensure that it operates with appropriate oversight and with best practices.

I have asked the Senate Committees to return back to the full plenary with their full Reports in two weeks.

-Dr. Abubakar Bukola Saraki (CON), President of the Senate

From 

The President of The Senate - Federal Republic of Nigeria

Today, the Senate passed a Motion on the Monumental Fraud in the Power Sector

Here’s what you need to know:

The Motion had to do with the $350million that was released to the Nigeria Electricity Bulk Trading Company (NBET) by the Federal Government, from a July 2013 $1billion Eurobond.

NBET is a Federal Government-owned public liability company that deals in electricity trading and management of associated liabilities. This is why the release of the $350million to NBET, was to demonstrate the company’s preparedness to assume its role as a government-backed bulk trader of electricity.

Additionally, the aforementioned release of the funds was intended to backstop NBET with new investors by providing these investors with the assurance that NBET was a credit-worthy off-taker of power with the requisite capitalization to meet its obligations.

As a confidence-building measure, this $350million was domiciled in the Nigerian Sovereign Investment Authority (NSIA) for structured reinvestments in a low risk manner that will provide NBET with the necessary liquidity.

However, there have been ongoing attempts by the Federal Ministry of Power, Works and House to retrieve this $350million, and divert the funds to some ‘Fast Power Projects’ that have not been appropriated by the National Assembly. Already, $35million of non-appropriated public funds have been spent on the aforementioned scheme, with $29million paid to General Electric for turbines, and $6million paid to other entities as ‘consultancy fees.’

Moving forward, the Senate has observed that a lot of questions in the disbursement of this $35 million need answers. Namely:
-Who were these consultants, and how were they procured?
-Was due process followed in the award of the $6million consultancy contract?
-Why was this transaction cloaked in so much secrecy?
-Why is the Ministry of Power Works and Housing constructing new power plants when government has several idle power plants?

To answer these questions, the Senate has resolved to:

1. Mandate its Committees on Power and Public Accounts to invite the Minister of Power, Works and Housing to render a detailed account of how the public funds were spent on the Fast Power Project; evidence of the feasibility studies conducted to show the viability of the project; and the requisite appropriation by the National Assembly as required by the Constitution.

2. Mandate the aforementioned Senate Committee to investigate and consider summoning the NSIA; Nigerian Electricity Bulk Trading Company to establish the status of the $350million; and

3. Mandate the Committee on Finance to investigate the actions of the NSIA inclusive of the issues raised in this Motion. As well as look into how policy decisions are made decisions are made on this issue. The Committee has been asked to submit its report to the Senate in two weeks.

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