OrderPaperToday– The House of Representatives on has mandated its Committee on Power to conduct a comprehensive investigation into the operational and financial activities of the Niger-Delta Power Holding Company (NDPHC), including all contracts awarded by the company since 2004.
The House expressed concern that billions of naira have been used in funding the organisation without commensurate impact.
The decision was sequel to a motion raised on Wednesday by Mr. Chisom Dike (PDP, Rivers) who noted that the National Integrated Power Project (NIPP) was conceived in 2004 as a fast-track government funded initiative to stabilise Nigeria’s electricity supply system while the private-sector-Ied structure of the Electric Power Sector Reform Act of 2005 took effect.
Leading debate on the matter, Mr. Dike noted that the initial funding for NIPP from the Excess Crude Savings Account (ECSA) and that the federal government incorporated the NDPHC as a limited liability company to serve as the legal vehicle to hold the NIPP assets using private sector-orientated best business practices.
He also revealed that the NDPHC, in the discharge of its duties, has awarded various contracts in relation to generation, transmission and distribution of electricity running into several billions of naira without corresponding impact on ground to show for such massive investments thereby denying Nigerians value for their money.
The lawmaker further expressed disappointment that most of the contracts awarded by the NDPHC, including contracts for the engagements of consultants and insurance companies are in clear violation of the Public Procurement Act of 2007.
He also complained about the widespread cases of non-execution of contracts by contractors of the NDPHC, some of which included the Lot 14 Lekki Ajah transmission line and Lot 8 of Ibiala Orlu transmission line.
The lawmaker added, “There are widespread allegations and controversies surrounding the award of contracts by the NDPHC for various projects including but not limited to contracts and payment of N350 million for additional works on Lot 14T Transmission Project, N244 million for extra works on New Abeokuta transmissions line (Lot 14-E), N104 million for Papalanto Old Abeokuta New Abeokuta 132 KV DC Transmission line (Lot 14-C).
“Again, N84 billion was approved for payment of compensation to communities where transmission lines of power projects were to be laid. Despite the claims that over N50 billion had been paid to communities, contractors were said to have been prevented from doing their works by the communities over non-payment of compensation, even as there were allegedly several other bogus payments made on compensation to communities, including N850 million as compensation to communities which has generated so much controversy.
“The manner in which the NDPHC has conducted its business for and on behalf of Nigerians, without corresponding results measured in terms of improvements in power supply over the years has deeply entrenched corruption, mismanagement and embezzlement of funds meant to be used for the development of the nation’s power sector”.
The motion was adopted when Speaker Femi Gbajabiamila put the question and referred to relevant committees for further legislative input.