The Senate on Wednesday mandated its Committee on Public Accounts to ascertain the $650 million balance of Eurobond with the Transmission Company of Nigeria (TCN) and the Nigeria National Petroleum Corporation (NNPC).
The upper legislative chamber also mandated the committee to invite the Minister of Power, Works and Housing, Babatunde Fashola, to render a detailed account of public funds spent on the Afam Fast Power Project.
It also urged the committee to investigate and consider summoning the Nigerian Sovereign Investment Authority (NSIA) and Nigerian Electricity Bulk Trading Company (NBET) to establish the status of the funds.
This was sequel to a motion sponsored by Dino Melaye (APC, Kogi State) on “Monumental Fraud in the Power Sector”.
He noted that sometime in July 2013, the Federal Government raised a total sum of $1billion through a Eurobond issue.
He said: “The sum of $350 million was taken by the Federal Government, out of the proceeds of the July 2013 Eurobond issue and released to the Nigeria Electricity Bulk Trading Company( NBET) Plc as shareholder contribution to shore up its capitalisation.”
He said the sum of $350 million released to NBET was to demonstrate NBET’s preparedness to assume its role as a government backed electricity bulk trader, to provide market confidence in the privatised electricity market.
“This move by the Federal Government was intended to backstop NBET with new investors in the electricity market especially new generation companies and to provide assurance to them that NBET is a credit worthy off-taker of power with the requisite capitalisation to meet its payment obligations to both greenfield and brownfields power generating companies.
“As confidence building measure, this money $350 million) was domiciled with the Nigerian Sovereign Investment Authority (NSIA) for reinvestment in low risk investment and structured in a manner that NBET can call for funds at short notice when required.
He said the fund had been with NSlA since 2014 and had built market confidence especially among new investors in the electricity market who see NBET’s positive balance sheet as a form of security that their investments are safe.
He alleged that there was a desperate attempt by the Ministry of Power, Works and Housing to retrieve the fund and divert same to fund the Fast Power Projects.
Senate President Bukola Saraki who presided over the session, referred the matter to the Senate Public Accounts Committee.
OWEDE AGBAJILEKE, Abuja
