The House of Representatives yesterday resolved to open an investigation into contracts awarded and payments made to contractors by the federal government since 1999.
The resolution was reached following a motion: ‘Need to review government expenditure on the power sector to ensure sustenance of the power reform programme in Nigeria’ sponsors by Mr. Sada Soli.
The probe, according to the resolution unanimously adopted by the House at the plenary will cover the $16 billion spent by the President Olusegun Obasanjo-led administration between 1999 and 2007.
It will also cover the administrations of Umaru Yar’Adua, Goodluck Jonathan and the incumbent, Muhammadu Buhari.
Presenting the motion, Soli said: “The House notes that the Electric Power Sector Reform Act was aimed at removing the ineffectiveness of the sector in order to transform it into a more efficiently managed sector.
“Aware that the power sector reform was expected to open opportunities for the development of Small and Medium Scale Enterprises, increase access to electricity in processing farm produce; create job opportunities for Nigerian teeming graduates and enhance socio-economic development of the country.
“The House recalls that an investigative hearing was conducted by the House of Representatives in 2008 over the alleged spending of about $16bn on the power sector.
“The set power generation target was that by year 2020, the nation would have achieved 40,000 MW based on the alleged investments in the proposed power plants, but till date, such generation target has eluded nation.
“Alarmed that the Investigative Hearing further revealed that contracts awarded for the Kainji, Egbin, Afam and Ugheli power stations as well as 9 other such contracts totaling up to $142 million dollars were never executed.
“Also alarmed that contracts awarded of over $50 million dollars to companies that didn’t exist and that two billion dollars ($2bn) worth of energy contracts were also awarded without bidding and due process.
“The House acknowledges the lamentation by the President (Muhammadu Buhari) to the effect that such huge sums of billions of dollars could be spent without commensurate results in the generation, transmission and distribution of power supply in the country.
“Cognizance of the provisions of Section 88 (2) (b) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) which empowers the House of Representatives to expose corruption, inefficiency or waste in the execution or administration of laws within its legislative competence and in the disbursement or administration of funds appropriated by it.
“Worried that up to date no person, company or agency of government involved in the alleged misappropriation of such huge sums of Billions of dollars has been prosecuted; despite the perennial epileptic power supply and its associated socio-economic consequences for the nation.”
