The Senate on Wednesday summoned the Minister of Power, Works and Housing, Babatunde Fashola, over the spending of $35 million without appropriation.
The Senate had mandated its Joint on Power and Public Account to unravel alleged monumental fraud on the “fast power project”.
The Minister was accused of paying $29 billion to General Electric on Adam Power project alone, as cost for turbines, and also paid $6 million as consultancy fees to other entities.
The Senate also summoned the Nigerian Sovereign Investment Authority and the Nigerian Electricity Bulk Trading Company among others to generally establish the status of the funds.
In addition, the upper chamber directed full probe $500 million eurobond with the Nigeria National Petroleum Corporation Company and the Transmission Company of Nigeria and report back in two weeks.
Leading a motion, Senator Dino Melaye accused Fashola of spending $35 million without the approval of the National Assembly.
According to Melaye, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric as cost for turbines and $6 million in consultancy fees to other entities, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.
He also raised the alarm that there is a desperate attempt by the Minister to collect $350 million from Nigeria Sovereignty Investment Authority, which is meant for NBET, on the pretext of acting under a purported presidential approval.
Melaye said: “There is now a desperate attempt by the Federal Ministry of Power, Works and Housing to retrieve this fund ($350 million) and divert same to fund the so-called Fast Power Projects, which the Ministry has already spent $35 million of public funds not appropriated by the National Assembly;
“Since the introduction of the Fast Power Project by the Federal Ministry of Power, Works and Housing, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric as cost for turbines and $6 million in consultancy fees to other entities respectively, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.
“Lot of questions are begging for answers as regards the $29 million paid to General Electric and the $6 million paid to other consultants as to who were the Consultants and how were they procured?
“Was there observance of due process in awarding the consultancy of $6 million and in paying General Electric $29 million for turbines?
“Why is the transaction cloaked in secrecy?
“What is the true value of Afam Fast Power?
“Why is the Ministry engaging in constructing new power plant, while government has several idle plants that is seeking buyers for?
“Why is the Ministry that is supposed to be making policies dabbling into constructing new power plants that we have all agreed is better handled by the private sector?”
Seconding the motion, Senator Hassan Mohammed said the motion is very straightforward one and called for the investigation of $500 million with Nigeria National Petroleum Corporation and the $150 million with Transmission Company of Nigeria.
After exhaustive debate on the motion, the Senate mandated the Senate Committees on Power and Public Accounts to invite Fashola to render a detailed account in terms of public funds spent on the Fast Power Projects (Afam Fast Power Project in particular); evidence of feasibility study indicating the viability of the projects; requisite appropriation by the National Assembly as required by the Constitution; and the controversial presidential approval for the projects.
It also directed the Senate Committees on Power and Public Accounts to investigate and consider summoning the Nigerian Sovereign Investment Authority Nigerian Electricity Bulk Trading Company, etc to generally establish the status of the funds ($350 million) and to report back to the Senate within two weeks.
Direct the Federal Ministry of Power, Works and Housing to stop or suspend all attempts or efforts to pressurize NSIA to release the sum of $350 million meant for NBET to the Ministry for use on the controversial fast power projects.