Missing $3bn: Senate commences thorough investigation of power projects sale

The Senate on Thursday, January 28 commenced thorough investigation into the sale of ten National Integrated Power Projects (NIPP) by the Bureau For Public Enterprises (BPE).

This decison was taken after a three prayer motion moved by Sen. Mohammed Hassan representing Yobe South senatorial district.Bukola Saraki, the President of the Senate expressed disappointment in the way the 3 billion dollars was handled.

The Federal Government invested over 8.2 billion dollars in the 10 power projects which were later sold for 5.8 billion dollars in 2014.Saraki therefore stressed that the Senate ensured that actions are carried out and these organisations are set as a deterrent for defaulters.“The privatization of some of the companies must be properly investigated: you wonder: how does an agency, sitting somewhere, can on its own, write off over $3 billion without any referral to anybody.“It is mind boggling: even if you are going to take a decision like that there must be some level of consultation and collective responsibility.“On this matter we must make an example, all these are our responsibilities and we must see some of these through, when we resume from plenary the report of the committee must be given priority,” he said.The senate directed its committee on Power and its Committee on Privatisation to look into the matter and report back in four weeks.Saraki stressed that the alleged non-payment of tax by some of the companies in the power sector amounted to revenue leakages.“We have been talking about non-oil revenue and we talk about how there is need to ensure that taxes are paid at the same time we are condoning agency of government that is not paying tax.“Then we wonder why our tax to GDP ratio is very low: these are issues that we must make an example of,” said Saraki.Danjuma Goje, the Chairman of the Committee on Appropriation also expressed his agreement with the matter being investigated

He said that the idea was to inject the private sector to make power more stable but stressed with displeasure that that there was no difference between the pre-privatisation and post-privatisation era.

The Senate thereafter also directed the investigation into preparation, execution and implementation of the management contract for TCN.
However, the Senate also queried the relevance of BPE on the board of Distribution Companies of Nigeria (Discos).