The Senate at its plenary session of Wednesday, 8 Nov 2017 mandated its Committees on Public Accounts and Power to investigate the allegations of financial fraud and planned diversion of $350million by the Federal Ministry of Power, Works and Housing.
Presenting his submission on the motion titled ” Monumental Fraud in the Power Sector”, Sen. Dino Melaye (APC:Kogi) explained that the Federal Government had released the sum of $350million from its proceeds of $1billion Eurobond to the Nigeria Electricity Bulk Trading (NEBT) Company in 2013 so that it could assume the role of an electricity bulk trader focusing on electricity trading and management of associated liabilities. According to him, the funds were domiciled with the Nigerian Sovereign Investment Authority (NSIA) since 2014 for re-investment in low risk ventures and were structured in a manner that NEBT could request for funds at short notice when required.
Sen. Melaye explained that these funds had help build market confidence among new investors in the electricity market, as it had created a form of security for their investment, therefore, the planned diversion and request by the Federal Ministry of Power, Works and Housing for the NSIA to release these funds meant for NEBT to fund its Fast Power Project violated extant laws on due process. He described the actions of the said Ministry as “fraudulent” mentioning that it had already spent $35million, which was not appropriated by the National Assembly on the project.
In addition, he explained that since the introduction of the Fast Power Project, the said Ministry had paid $29million to General Electric (GE) as cost of turbines and $6million in consultation fees to other entities without requisite feasibility studies of the project. He urged the Senate to further demand for a detailed account of funds expended on the Fast Power Projects.
