…Some power companies receives commendations
….Bank executives turned back
By Lubem Gena, Abuja
The House of Representatives Public Accounts Committee (PAC) has invited the Finance and Coordinating Minister of the Economy, Mr. Wale Edun and the Comptroller General of Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi to explain their roles in the delay of several power projects in Nigeria.
The committee at its resumed hearing today, Wednesday, 13th December, entertained cases bothering on the procurement contracts involving several companies who were to embark on capital projects for the various electricity distribution companies in the accelerated transmission and distribution interface project.
Representative Bamidele Salam who chairs the committee informed the hearing that the committee was beaming its searchlight on issues around the procedure for the disbursement of loans and accessing the funds by the contractors as well as the repayment pattern for the loans that the distribution companies received from the Central Bank of Nigeria (CBN).
It could be recalled that while making their presentations on the status enquiry/investigation on the projects worth $231,004,002.8 and N18,264,411,235.66, contractors including AAKS &Bros Ventures, Laga Cepower Limited, Bussdor & Company Limited, Elektron Petroleum Energy and Mining Limited, Skipper Nigeria Limited and a host of others heaped a lot of blames on the Federal Government and financial institutions for making it difficult to access the funds that are released for the projects.
On the part of the federal government, it was emphasized that, the inability of the Ministry of Finance to issue waivers to them has accounted for the reason while their equipment lied at the seaport for long and demurrage accumulated on them thereby adding extra burden to their contractual obligations.
Honourable Zakaria Dauda Nyampa having listened to the lamentations of the contractors on matters relating to the standard practice on goods of this nature described it as unfortunate.
“Mr. Chairman, with your kind support, I want to come as a motion to summon the Nigeria Customs and the Minister of Finance to clarify on this challenge because the issue of the power sector affects everybody. It affect our economy as a nation and if these things are just been introduced, it is quite unfortunate.
“So, Mr. Chairman, I want to move that we invite them and still invite the Transmission Company of Nigeria (TCN) to come and make the same presentation. The contractors will also be here and everybody will know that some people are also part of our suffering in this country. I so move Mr. Chairman”.
Responding, Rep. Salam who put the motion to vote states that, “is there any seconder to that motion that this honourable committee should invite the Minister of Finance and the Comptroller General of Customs to come and explain why the contractors handling this TCN project should not be given the waiver as it was a standard before now for us to be able to clear those items?”
Hon. Abdulmalik Abdulahim seconded the motion and it consequently received the voice affirmation.
Earlier, while opening the floor, the CBN said it has already released the monies to the various banks that were provided by the contractors from where it was to go to just as he pointed out that he has visited a number of the projects and have a record that shows the various levels of status of the projects.
AAKS and Bros ventures whose completion status stands at 40% while Laga Cepower Ltd who has performed at 90% as well as Bussdor and Company Ltd that has also performed upto 90%.
Meanwhile, some companies who explained that in spite of the challenges in the process of incurring foreign exchange, went into bowing and even mortgaged some of their personal belongings to execute the project were commended for doing a great service of honour to the country.
They include Mr. Oscar Igbokwe, the President of Bussdor Group and Mr. Ayodele Osuporu of Inlaks Power Solutions Limited among others.
Also, during today’s seating several Managers of various banking institutions were turned back as not meeting the hierarchy required to appear before the committee.
They were to make certain clarifications on their failure to release money to contractors to embark on the projects as they were there bankers. The committee had written to the Managing Directors and requested that officers not below the rank of Executive Directors but was surprised to find out that heads of units were in attendance for the purpose.
