Reps query Minister over N701bn utilization plan

The House of Representatives Committee on Power, on Wednesday summoned Babatunde Fashola, Minister of Power, Works and Housing to furnish it with details of plans for the utilization of the N701 billion bond for power sector.

The lawmakers also requested for details of the $5.71 billion of Mambilla Hydro Plant Project as approved by the Federal Executive Council (FEC).

Daniel Asuquo, chairman of the Committee who queried the arbitrary violation of the procurement process and violation of the 2017 Appropriation Act, described most of the transactions carried out within the sector are ‘voodoo’.

The lawmakers specifically queried Nigerian Bulk Electricity Trading Plc (NBET) over the utilization of N22 billion spent monthly on gas without commensurate result.

Asuquo who frowned at the level of impunity in the sector, decried the poor management of the power sector and the arbitrary approvals and disbursement without recourse to the National Assembly.

“There’s panic in the industry but most of the people in this hall are afraid to speak out. But for how long are we going to be deceiving ourselves? I look at the figures here and I’m shocked to the foundation, billions, billions, billions but there’s no power. Why are we deceiving ourselves?

“We are not seeing the will from the Executive because all we see are the people who just want to put us in debt, debt and debt even without passing through due process, because TCN is a can a worm from our own overview.

“We need to bring out this to the public for them to know the state of our power, we have parleyed too much. How much of this can the distribution companies take,” Asuquo queried.

During the investigative hearing, members of the Committee expressed displeasure over the inability of the Minister’s representatives to respond to inquiries on the proposed N309 billion loan to finance the shortfall in the Nigerian electricity market.

On his part, Mark Gbillah (APC-Benue) who decried the solvency of NBET and TCN, argued that the power sector may collapse in the next six to seven years if drastic action is not taken.

Gbillah who described the process of approval of loans by the Federal Executive Council as ‘insultive’ emphasized the need for the House to call the Executive arm to order.

“It seems the other teams of the Executive believe Federal Executive Council approval is enough for them to start to disburse the loans that have been approved.

“You’ve started disbursing money approved by Federal Executive Council that are binding to this country in terms of loans as well.

“We need to finally come up with a response to this for Nigerians to know with regards to this impunity by calling the Executive to order,” Gbillah who doubles as deputy chairman, House Committee on Petroleum Resource (Upstream) said.

The lawmaker who called for forensic audit of the sectoral activities and funds spent so far on the power sector, alleged that “We are trying to pay for the business of certain individuals at that level of gas and generation. We need to do a forensic study of these gas companies.

“What are they actually generating? What are we always required to pay them? The generating companies always tell us a mongos figures of what they are generating, and how there’s no transmission capacity, the losses that they experience.

“We need to start from the bottom up as well from the gas angle. Where are these monies going to? This question goes to the Permanent Secretary.

“What is the utilization of these funds and the level of generation along the value chain, the operating cycle from GenCoS to TCN and DisCos?

“Is this the best model in the world? I think NBET only came to complicate the issues in the centre of the value chain,” he alleged.

While reacting to the submission of the Minister’s representatives, Toby Okechukwu (PDP-Enugu) who frowned at the indiscriminate injection of fund into the distribution companies by Federal Government.

He said: “I don’t know whether the acquisition of the distribution companies is worth more than N701 billion. The total capital of these companies may not be up to N701 billion.

“Yet we are borrowing money to support them and give NBET,” Okechukwu who doubles as Chairman, House Committee on Works lamented.

The permanent secretary who represented Fashola failed to furnish the committee with detailed information about unauthorized activities carried out by the ministry.

While responding to question on the status of NBET Board, Dozie noted that the company is wholly owned by Federal Government adding that all government owned without board, are answerable to the President through the Minister.

Worried by the development, the Committee directed the Minister to appear before it along with Louis Edozien, permanent secretary along with Managing Directors of TCN and NBET at yet to be announced date.