Reps probe over N2bn, $3.8m allegedly diverted from sale of PHCN

The House of Representatives on Tuesday unveiled plans to investigate over N2 billion and $3.8 million allegedly diverted from the proceeds of the sale Power Holding Company of Nigeria (PHCN) assets to successor companies.

The resolution was passed sequel to the adoption of a motion sponsored by Chukwuka Onyema, Deputy Minority Leader.

In his lead debate Onyema expressed concern over the failure of regulatory agencies involved in the privatisation and commercialisation of public assets to give details of the exercise.

“The House notes that the Electric Power Sector Reform Act of 2005 unbundled the Power Holding Company of Nigeria into a series of 18 successor Companies composed of six Generation Companies, and 12 Distribution Companies covering all the 36 States of the Federation and a National Power Transmission Company.

“The House also notes that following the divestiture of Federal Government from PHCN through privatization, the Company was divided into separate Companies known as the Local Electricity Distribution Companies.

“The House is aware that the successor Companies made payment to the Federal Government through the following Banks: Standard Chartered Bank, Fidelity Bank, Stanbic IBTC, Access Bank, FCMB, Skye Bank, Sterling Bank, Zenith Bank and Unity Bank,” he explained.

He alleged that the “accrued interests due to the Federal Government to the tune of N2 billion and $3.8 million were alleged to have been diverted by those Banks in collaboration with officials of the Central Bank of Nigeria.

While calling for the intervention of the House in line with Section 88(2b) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) which “empowers the House to conduct investigations for the purpose of exposing 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,” Onyema said.

To this end, the House resolved to set up an Ad-hoc Committee that would investigate the matter and report back within six weeks for further legislative action.