The Nation Newspaper

Tag: BPE

  • Fed Govt to meet labour over refineries privatisation

    The Federal Government would not start the process of privatising the refineries until it met the labour unions and other relevant stakeholders in the petroleum value chain.

    The Bureau of Public Enterprises (BPE) said the aim was to discuss all issues relating to the disengagement payment of entitlement of workers in the industry. It said the development is in line with what happened during the privatisation of the power sector in which the government met and discuss with various unions on labour matters.

    According to a statement from the BPE’s Spokesman, Chigbo Anichebe, government has commenced the privatisation of refinery .

    He said the steering committee chaired by Minister of Petroleum Resources Mrs Diezani Alison-Madueke would meet to prepare the modalities for the privatisation of Warri, Kaduna and Port Harcourt 1& 2 refineries.

    ‘’ That the privatisation process has not commenced. It will only commence after the steering committee chaired by the Hon. Minister of Petroleum Resources meets to provide the broad guidelines for the transaction.

    ‘’That labour and their unions are critical stakeholders in the privatization process and their buy in will be sought before the commencement of the privatisation process.

  • FG completes sale of PHCN’s successor companies

    The Federal Government on Monday drew the curtains on the privatization of the successor companies to the Power Holding Company of Nigeria (PHCN) with the formal handing over of the remaining two – the Kaduna Distribution Company and Afam Generation Company – to their new owners.

    The Northwest Power Limited got the Kaduna Disco, while Taleveras Afam Power Plc, promoted by Taleveras Group got the Afam Generation Company.

    The Bureau of Public Enterprises (BPE) had earlier announced Taleveras as the preferred bidder for Afam Genco with an offer price of $260 million, while Northwest had the highest Aggregate Technical Commercial and Collection Loss reduction (AT&C) of 29.26 per cent in respect of Kaduna Disco .

    The handing over of the companies to their new owners was completed yesterday at the signing of the Share Purchase Agreement (SPA) by representatives of the BPE and the companies in Abuja.

    BPE’s Director General, Benjamin Dikki signed for the Federal Government; Oghens Sanomi signed for Taleveras, while Yusuf Abubakar signed for Northwest.

    Before the signing of the agreement, Dikki said the final handing over of the nation’s power sector to private managers will be completed next year.

    He said the commencement of the second phase of the process of full liberalization of the power sector was on its advance stage as the government will soon open financial bids for the nation’s 10 National Integrated Power Project (NIIP) plants.

    He said, “We have also reached an advance stage in the privatization of the 10 NIPP plants. We shall be holding the financial bid opening for the plants after we have got the approval of the Technical Committee and the National Council on Privatization (NCP).

    “Once that is concluded, we would have come to a situation where the power sector will be completely in the hand of the private sector.

    “But that will not preclude further government investment in the sector.

    “Once the sector is completely liberalized, government can also be a player in the sector until we achieve sufficiency in power supply in the country.

    “Today we are making history as we come to the end of the privatization of the PHCN’s successor companies.”

     

  • SGF wants N200m to monetise residence and office accommodation for Diya

    The Office of Secretary to the Government of the Federation (OSGF) wants to provide “monetised residential/office accommodation for the former Chief of General Staff General Oladipo Diya” at the sum of N200 million.

    This is contained in the 2014 budget details in possession of The Nation. In the new year, the OSGF is demanding for N1,161,356,582 for the supply and installation of under-vehicle inspection system, bollards, hand-held explosive detectors and bomb inhibitors at selected Ministries, Departments and Agencies (MDAs) in Abuja.

    The office of the SGF also wants N50,073,420 to purchase “gymnasium equipment (bicycle, ego treadmill and set of weights.)

    However, a sum of N70 million is being demanded to furnish the vice president’s guest house in Asokoro District, while N12 million will be used to furnish the newly constructed service quarters for State House Medical Centre at N2 million for six properties.

    In addition, N67 million is to be expended as balance payment for the purchase of one sewage truck for the presidency, and N5 million is to be spent to purchase gardening equipment for the State House.

    The Presidency also plans to spend N76,375,000 to purchase service equipment (crested cutlery, flatware and glassware).

    On its part, the Bureau of Public Enterprises (BPE) is demanding for N1.09 billion to be spent as privatisation transaction expenses, while the Border Communities Development Agency is asking for N25 million for the construction of two boreholes with 500 litres elevated steel tanks and reticulation (water distribution) in Katsina and Kebbi States.

     

  • Jonathan approves commencement of refineries’ privatization

    Jonathan approves commencement of refineries’ privatization

    President Goodluck Jonathan has approved the commencement of the privatization of the nation’s four refineries by the Bureau of Public Enterprises (BPE).

    Besides, the President has also approved the constitution of a steering committee on the privatization process that involves all relevant stakeholder, ministries and agencies.

    The Head, Public Communications at BPE, Chigbo Anichebe, disclosed this in a statement on Friday.

    According to BPE, the decision is in furtherance of the economic reform programme of the present administration.

    The statement said, “This is in keeping with the Transformation Agenda, which seeks to catalyze and provide an enabling environment for the private sector to be the drivers of economic growth in the country.”

    The four refineries are – Port Harcourt Refining Company Limited (PHRC) I, Port Harcourt Refining Company Limited (PHRC) II, Kaduna Refining & Petrochemical Company Limited (KRPC) and Warri Refining & Petrochemical Company Limited (WRPC).

     

  • Reps summon BPE’s DG over proposed sale NITEL/ Mtel

    Reps summon BPE’s DG over proposed sale NITEL/ Mtel

    The House of Representatives yesterday summoned the Director-General of the Bureau of Public Enterprises (BPE), Benjamin Dikki to appear before its Committees on Privatisation and Commercialisation and Legislative Compliance, in a bid to halt the proposed liquidation of Nigeria Telecommunications Company (NITEL) and the Mobile Telecommunication Company (MTEL).

    Dikki is to amongst other things explain the reason for shunning earlier resolutions of the House stopping the sale/liquidation of the entities.

    The House on 13th March 2012 and October 3rd, 2013, after considering and adopting the resolutions of the report of an investigation by its Committees on Privatisation, Commercialisation, ICT and Finance, had directed the federal government to halt the sale/ liquidation of NITEL/ MTEL

    The House cited, among other reasons, undervaluation and security for halting the liquidation at the time.

    Moving a motion under urgent National Importance yesterday, Hon Ibrahim Shehu Gusau (APC, Zamfara) argued that the motion to summon Dikki, is to explain why the National Council on Privatisation and Bureau of Public Enterprise could ignore the resolution of the House on the issue:

    “Despite the House’s resolution on the matter which was communicated to the National Council on Privatisation and Bureau of Public Enterprise, these agencies became defiant and initiated the process of liquidation which is almost concluded,” he said.

    The lawmaker said it was disturbing that the BPE had appointed a liquidator for NITEL/MTEL and the continuation of the transaction with guided liquidation contrary to the House’s resolutions.

    He said there is a need to stop the liquidation of the companies in the public interest.

  • Needless guarantee

    Needless guarantee

    •N50bn public funds to the GENCOs won’t let them put in their best

    The Federal Government, through the Bureau of Public Enterprises (BPE) and the Nigerian Bulk Electricity Trading Company (NBET) Plc signed a N50billion needless escrow guarantee account agreement on power with three Nigerian banks. The banks: United Bank for Africa (UBA), First Bank Plc and First City Monument Bank (FCMB) Plc are to act as custodians of the funds and to ensure adherence to due process in the bid to access it by owners of the electricity Generation Companies (GENCOs). The generating companies are successor companies of the Power Holding Company of Nigeria (PHCN).

    The money, to be administered by NBET was part of proceeds from the privatisation of the defunct PHCN and is expected to insure the generating companies against revenue loss in their effort to boost electricity generation. According to Benjamin Dikki, Director-General, BPE, the Partial Risk Guarantee (PRG) expected from the World Bank could not be secured in the prevailing circumstance.

    Obviously, the Federal Government has shown understandable anxiety over the need to improve electricity generation in the country. This is because of the importance of stable power if the economy must truly develop. However, the way to go should have been for it to use whatever money at its disposal to develop infrastructure in the sector rather than acting as insurer to the GENCOs. The N50billion Naira would go a long way in helping to boost desired infrastructure in the power sector.

    This should not mean a denial of the fact that power generation requires a lot of financial investment. Dikki’s costing puts the average cost of installing a megawatt at about $1.3 million which we consider to be quite huge. But didn’t the GENCOs conduct due diligence before purchasing that part of PHCN? If they did, then the duty of providing guarantee should not be that of the selling government.

    And if they did not, the GENCOs are presumed to have voluntarily taken over the risks under the legal principle of volunti non fit injuria (voluntary assumption of risk) which should not be the fault of the government. It is this fear of loss that would make them put in their best to ensure the success of their business ventures in the power sector. The best the government ought to do is to provide the enabling environment through tax incentives and duty waivers on necessary machineries, among others, that could boost the generating capacities of the GENCOs, over a specific period of time. This policy negates the best tradition and spirit of free enterprise, and such guarantee will not instill discipline in the GENCO ranks.

    Going by the country’s awry antecedents in the handling/management of such funds, the sad result of this huge fund can easily be predicted. Despite government’s assurances that the money is not a gift, we have little or no confidence in a policy initiative whereby the government stands as surety for the GENCOs. The official fears that whatever is generated might not be bought by the public is unfounded as there is already in existence a huge market for whatever power may be generated by the GENCOs.

    This booty comes across as another ill-conceived policy grandstanding and misplaced priority by the government. Again, on this issue of power, the government should not be seen to be approbating and reprobating at the same time if truly it understands the whole essence of privatisation. We ask: What is the purpose of transiting the power sector from public to private enterprise when the government knows that our money would still be deployed to guarantee these investors?

  • N50b for electricity firms to boost power

    N50b for electricity firms to boost power

    Owners of the Electricty Generation Companies (GENCOs) are to get a N50 billion prop from the Federal Government, which is desperate to expand electricity generation.

    The N50 billion will come in form of a guarantee.

    On behalf of the Federal Government, the Bureau of Public Enterprises (BPE) and the Nigerian Bulk Electricity Trading Company (NBET) Plc, the government signed yesterday an escrow agreement on power with three Nigerian banks in Abuja.

    The three banks are United Bank for Africa (UBA), First Bank Plc and First City Monument Bank (FCMB) Plc, which is the lead escrow agent.

    Although the banks will take custody of the fund, the NBET will administer the N50billion, which will be raised from the proceeds of the privatization of the PHCN successor firms.

    In the absence of the World Bank to provide Partial Risk Gurantee (PRG), the fund will serve as a palliative for the new owners to improve power generation, The Nation learnt.

    But, speaking after the documents signing ceremony, the Director General, BPE, Mr. Benjamin Dikki, noted that such financial guarantee should not BE taken as a grant, considering established processes required for any generation company to benefit from it.

    His words: “This N50 billion is not a dash. There are certain conditions that must be met before funds can be drawn from this escrow account. The market and systems operator have to confirm the quantum of power that was put on the national grid. The market operator has to confirm that because of system defects and inefficiencies in the transmission network, certain amount of power was lost. So, there has to be a due process before any Genco can draw from this amount; it is not a gift because certain conditions have to be met.”

    He said :”It is actually the generation companies that are left on the high end and we need to guarantee that whatever power they generate will be paid for if not, they will lose their capital and not able to invest in expansion of their capacities.

    “We have a deficit of about 29,000 megawatts (MW) of basic power needed to stabilise our power needs of 40,000MW and the average cost of installing a megawatt is about $1.3 million and that will mean an investment of $7.5 billion for 5000MW, and so we need to make sure that we create the atmosphere that will enable these generation companies to make investments without worrying whether they will be able to recoup monies they have invested and that is why this escrow account was created,” Dikki said.

    On the roles of the banks, Dikki said: “The banks are the custodians of the money, which is deposited in them and we want to establish a process through which this money will be drawn and not just drawn frivolously; that is why the BPE, Bulk Trader and the banks signed the agreement to say that you have to follow a process to draw this money; otherwise, there will be penalties.”

    The distribution companies are not covered by this escrow account because they have committed to reducing the Aggregate Technical Commercial and Collection (ATC&C) losses of the companies.

    Dikki said: “If you recall, they (distribution companies) were not given to the highest bidder but to those that committed to reducing ATC&C losses by a certain percentage and so they have committed and have given a technical proposal with a business plan cataloguing the level of investments that they will make every year in this regard.”

  • NECA urges govt on privatisation of refineries

    NECA urges govt on privatisation of refineries

    THE Nigeria Employers Consultative Association (NECA) has implored the the refineries in the country.

    NECA’s Director-General, Mr Olusegun Osinowo,  said privatising the refineries was inevitable to stop the deluge of  petroleum products importation, as well as check the subsidy, which has no positive  impact on Nigerians.

    He argued that selling the refineries would give respite for the huge funds expended on their turnaround maintenance.

    He said the ills besetting the nation’s downstream sector of the petroleum industry would be addressed if the private sector was allowed to maintain the refineries.

    Oshinowo, however, warned that the impact would be damning on the economy if labour issues were not well-handled under the privatisation agenda.

    While praising President Goodluck Jonathan for the courage in privatising the sector, which he said could be seen as a defined legacy for the administration, he regreted that the process was being marred by industrial relations issues.

    “The big issue that nobody is talking about, though the BPE and the NERC have done the needful in privatisation, is that we have not seen their template in the area of industrial relations,” he said, adding that the most that have been done was the physical take over, but not the human take-over, insisting that failure to do that would cause undue crisis which could endanger the economy.

    He said: “ If the nation could tolerate four months of strike in the education sector, I don’t think the economy can withstand that if the workers in the power sector should decide to withdraw their services.

    “The Ministry of Labour should be echoing this and should be talking to the new employers. We shouldn’t wait until the bubble bursts before we start running from pillar to post.”

    Harping on the need for collaboration between the employers and the unions in the sector, he explained that there is need for the new employers to come together to interact with the unions to avert the impending crisis.

    To forestall this, Oshinowo said NECA has scheduled a meeting with the new employers in the power sector for early next month. He advised the unions talk to the new employers as against the Ministries of Power and Labour.

    He said the unions were not talking to the right people, because the duty has been shifted to the new employers, stressing that NECA was ready to bridge the gap between the employers and the employees to ensure that there is industrial harmony.

    He said the Bureau of Public Enterprises (BPE) and other government’s agencies that superintended the sale of the power assets to the new investors did not consider any industrial relations templates during the auctioning of the assets.

    He explained that the new owners must deem it necessary to give workers the right to unionism and collective bargaining to enable them have a sense of belonging in the organisation.

    He warned that failure on the part of the owners to use industrial relations as a guide would spell doom for the power sector and the nation at large.

    Oshinowo said  the privatisation of the refineries should be treated separately from the passage of the Petroleum Industry Bill (PIB), now at the National Assembly, adding that because the power sector has been privatised and the assets of the defunct PHCN ceded to the new owners, was not a guarantee for efficient power supply.

    He said Nigerians should take cognisance of the challenges in the sector, stressing that they would take some time to overcome.

  • National Assembly’s probes without results

    National Assembly’s probes without results

    Since the inauguration of the sevenath National Assembly, it has instituted several probes and passed many a motion. But, almost nothing has been achieved through these probes and motions, write VICTOR OLUWASEGUN, ONYEDI OJIABOR, DELE ANOFI and SANNI ONOGU

    Since the inauguration of the Seventh National Assembly over two years ago, it has busied itself with one form of investigation or the other. Some of the investigations were successfully concluded while others were not. Some probes even dragged on for months and had to be abandoned halfway to the consternation of those who put much hope on the investigations.

    For the National Assembly, it has been probe, probe and more probe. Apart from probes, there are also countless number of motions.

    Of interest, however, is the fact that the resolutions of most of the investigations are never implemented. Where they are implemented, it is done as it suits the whims and caprices of the implementer.

    It may be asked who really benefits from what has been described as the National Assembly endless probes? What was the cost of the probe of the Bureau of Public Enterprises (BPE) over the privatisation and commercialisation of Federal Government’s concerns or the Pension probe which dragged on for months?

    Some observers have described the National Assembly investigations as mostly self-serving while others see the probes as avenues to intimidate, cajole, coax as well as to extort money from “recalcitrant and unwilling” government agencies that refuse to “play ball”.

    Senate and its probes

    Some of the probes that have been done by the Senate are: the oil subsidy probe, the Rivers State House of Assembly crisis probe, killing of Christopher McManus, a Briton and Franco Lamolinara, Italian in Sokoto by their captors, probe of alleged illegal 37 housing estates in FCT, Malabu Oil Field transaction probe, investigation of alleged $27 million Embassy funds and the probe of police pension funds.

    Investigations still pending include Apo killings, Associated Airline crash, N255 million armoured cars purchase probe.

    The probe of oil subsidy expenditure by the Senate followed a motion by Senator Bukola Saraki. The Kwara central lawmaker drew Senate’s attention to mind bugling expenditure made by the Presidency presumably as payment to oil marketers.

    Senate Joint Committee on Petroleum Resources (downstream), Appropriation and Finance swung into action to unravel what went wrong. The Senator Magnus Abe chaired joint committee after months of investigation turned in its report. The crucial report has not seen the light of the day after over one and half years.

    The collapse of some Federal Government privatized companies and establishment prompted the Senate to raise the Senator Ahmed Lawan probe committee to look into the matter.

    Lawan, (Yobe South), on July 19, 2011, brought a motion about the collapse of some privatised government companies.

    On the strength of the motion which essentially considered the Privatization and Commercialization Act of 1988, Bureau of Public Enterprises Act of 1993 and the Public Enterprises (Privatisation and Commercialisation) Act of 1999, the Senate resolved to raise a special committee to probe the ways and means the Bureau of Public Enterprises (BPE) conducted the privatisation of the companies.

    After months of investigation, which saw committee members traversing parts of the country in search of facts, the committee made 45 recommendations.

    Apart from the recommendations, the committee also exposed shady deals perpetrated in the guise of privatisation exercise. Of importance to the upper chamber was a situation where most of the privatised companies became moribund after the exercise.

    The Senate adopted the 45 recommendations wholesale apparently due to the weight of submissions made by the committee. Sadly , the recommendations had been hardly implemented two years after.

    The Senate mandated its Committee on Aviation to investigate the circumstances surrounding the crash of Dana Airliner on June 3, last year. The probe of the crash, which claimed the lives of over 153 persons, was touchy as it was emotional. To underscore the importance of the investigation the House of Representatives Committee on Aviation also joined.

    The joint committee, after its investigation, recommended that the operations of Dana Airline should be banned. It also recommended that the then Director-General of the Nigerian Civil Aviation Authority (NCAA) Mr. Harold Demuren, should be relieved of his appointment.

    Apart from the removal of Demuren as NCAA DG, not much has been hear of other recommendations.

    If the probe of Dana Air crash was emotional and touchy, the investigation of the N273 billion alleged looted pension fund was mind bugling. The Senate Joint Committee on Public Service and Establishment and State and Local Government Administration conducted the investigation.

    Senator Aloysius Etok headed the probe into alleged massive fraud in the management of pension funds. The first phase of the panel’s report said N273 billion pension fund was looted in six years.

    The Senate decided, among others, that the Pension Reform Task Force be dismantled while its chairman, Abdulrasheed Maina, should be sent packing. Maina, who refused to honour invitation by the committee, went to court to clear his name. The matter is still pending with other twist and turns introduced into the alleged scam.

    The probe of the controversy surrounding the sale of the $1.092 billion OPL 245 oil bloc involving Malabu Oil and Gas Limited and Shell/Agip was sequel to a motion sponsored by Deputy Senate Leader, Abdul Ningi. After much debates, not much has been heard about the probe.

    The House also probed

    To some people, the House of Representatives is probe-centric. While some think the House is playing to the gallery in its desire to be seen as being on the side of the people and that the probes are a waste of time, others are of the opinion that the investigations/probes have added value to the country.

    Sections 62, 88 and 89 of the 1999 Constitution empower the House to entertain petitions against public officers.

    During the 7th Assembly,

    one of the high profile inves

    tigation embarked on by the Aminu Tambuwal-led House of Representatives is the probe on the fuel subsidy regime in which over N1.3 trillion was said to have been disbursed.

    The adhoc committee headed by Farouk Lawan, which was set up in January last year, was well received. The committee shocked Nigerians with revelations on the level of plundering that was in the petroleum sector and how the country had been defrauded of over N2 trillion through collusion between government officials and fuel importers.

    Sadly, an allegation of $620,000 bribe request from an oil businessman, Mr. Femi Otedola, against Lawan rubbished what was seen as one of the shinning points of the seventh House.

    On July 15, the House Committee on Drugs, Narcotics and Financial Crimes commenced a three-day public investigative hearing to unravel the status of all assets seized and recovered by the Economic and Financial Crimes Commission (EFCC) since inception.

    According to the Chairman, House of Representatives Committee on Drugs, Narcotics ad Financial Crimes, Adams Jagaba, the House was inundated with complaints from the public on seized assets by the Commission, which led to the Committee being mandated to find out the status of the seized and recovered assets by the Commission since its inception in 2003.

    He, however, accused the EFCC and the Nigerian Customs Service (NCS) of deliberately refusing to be investigated and of hampering investigation.

    On July 28, Reps opened a probe into the Aviation Ministry over a N9 billion contract. The investigation was also extended to the SURE-P and the Ministry of Works too.

    The assignment was given to the House Committee on Anti Corruption, National Ethic and Values, to investigate the Ministry of Aviation over the award of contracts running into billions of naira paid for but not executed.

    Chairman of the Committee, Abiodun Faleke, said the Subsidy Reinvestment and Empowerment Programme (SURE-P) as well as the Ministry of Works were to be investigated for breaching Public Procurement Act over No Objection Certificates.

    According to him, the Committee was prompted into the investigation as a result of the extent of abuse the No objection Certificate has been subjected to by Ministries, Departments and Agencies (MDA), the report is yet to be submitted.

    The House on July 25 began a probe of the Minister of Federal Capital Territory (FCT), Malam Bala Mohammed over alleged land swap deals. The lawmakers were charged with investigating all cases of land allocation by the FCT from 2010 to date in order to ascertain the propriety and or abuses that borders on racketeering.

    The Speaker, Aminu Tambuwal constituted an eight-man ad hoc Committee chaired by Bimbo Daramola (APC Ekiti) to investigate the matter. The investigation is yet to commence at the time of filing this report.

    The investigation of the Bonga oil spill began in the House on July 14, as the Committee on Environment headed by Uche Ekwunife summoned SNEPCO, its parent company, Shell Petroleum Development Company (SPDC) and the Nigerian Oil Spill Detection and Response Agency (NOSDRA) over 2011 Bonga oil spill.

    The Nigerian Maritime Admin

    istration and Safety Agency

    (NIMASA) and the Department of Petroleum Resources (DPR) were also invited to explain their roles in the spill alleged to have destroyed the means of livelihood of 83 communities along the Warri South West and Warri North Local Government Areas of Delta State. The investigation is still ongoing.

    Reps decided to investigate the Rivers State security situation July 3, having expressed concerns over the degenerating security situation in the State as a result of the face-off between Governor Rotimi Amaechi and the Commissioner of Police Mbu Joseph Mbu.

    The adoption of a point of order on July 9, on a matter of urgent public importance by Andrew Uchendu (PDP, Rivers) had the lawmakers resolving to probe attack on Rivers State House of Assembly. Uchendu posited that democracy is under threat as ex-militants attacked members of the State House of Assembly a day previously.

    Consequently, the House directed the Deputy Leader of the House, Leo Ogor (PDP,Delta) and the Majority Whip, Ishaku Bawa (PDP, Taraba) to liaise with the ad-hoc Committee that was constituted earlier to look into the crisis between Governor Rotimi Amaechi and the Police Commissioner, Joseph Mbu. The investigation has been concluded.

    Not long after this, the House named a 14-man ad hoc Committee to investigate oil theft in the country and also to look into the propriety of contracting the protection of our water ways and oil pipelines to private firms.

    The Ad-Hoc Committee was also mandated to investigate the allegation made by the Director-General of NIMASA, Dr. Patrick Akpobolekemi, of the involvement of influential people in oil theft and the fact that his organisation has seized ships belonging to the oil thieves and report back to the House within two weeks.

    In addition, the Ad-Hoc Committee is to ensure compliance on the issue of putting automated metering system on oil wells, flow heads and export terminals, so as to have accurate data on all processes, and report back to the House by end of January 2014.

    The House, on July 2, mandated its Committee on Petroleum Downstream to investigate the issues raised by the Nigerian Union of Petroleum and Natural Gas workers (NUPENG) as well as the Academic Staff Union of Universities (ASUU).

    Comments by the Minister of Finance, Ngozi Okonjo-Iweala over the 2013 budget set the tone for an investigation by House Committees on Finance, Appropriation and Legislative Compliance.

    The Minister was quoted to have told Nigerians that the the collapse of the economy is imminent and that by September workers would no longer be able to draw their salaries unless the National Assembly pass the amendment bill and restore funds requested by President Gooluck Jonathan. Her comment were seen by the lawmakers as an attempt to incite Nigerians against members of the National Assembly over the 2013 budget amendment bill. The Minister was hauled before the lawmakers to explain herself. The joint Committee was given seven days to submit its report.

    On June 3, the issue of malfunctioning Automated Teller Machines (ATM) in banks caught the attention of the lawmakers and an investigation into allegation of wrongful withholding of customer’s monies through malfunctioning Automated Teller Machines (ATM) commenced.

    The decision of the lawmakers followed the adoption of a petition on the issue presented by Ali Ahmad (PDP, Kwara) who noted that the trend is a threat to the country’s transition to a cashless economy. Ahmad, who is also Chairman, House Committee on Justice in the petition narrated how customers went through harrowing experiences through malfunctioning ATMs. The report is yet to be submitted.

    Why would the country award its Internet monitoring contract to a foreign firm? This was the question members sought to answer on the 30th of May as they began the probe of the award of $40m internet spying contact to a foreign company by the Federal Government.

    The project was to monitor computers and Internet activities of over 45 millions Nigerians on the web. The lawmakers said the process of awarding the contract failed due process and in breach of Fiscal Responsibility Act, and Bureau of Public Procurement Act 2007.

    Consequently, the House Committees on Information and Computer Technology, Human Rights, and National Security were mandated to conduct inquiry into the project and report back in three weeks.

    The decision followed the adoption of a motion under the matters of urgent public importance raised by Ibrahim Shehu Gusau (ANPP, Zamfara), who noted that the project violated basic privacy provisions of Chapter 4 Section 37 of the 1999 constitution (as amended)

    A N275 billion Customs contract came under the lawmakers’ periscopes on January 23, as they expressed concern over the management of N275 billion Destination Inspection Scheme (DIS) between the Nigerian Customs Service (NCS) and the Ministry of Finance.

    The DIS contracts were awarded to four foreign firms- Cotecna Destination Inspection ltd; SGS Scanning Nigeria ltd; Global Scan Systems ltd and Webb Fountain (Nigeria) ltd to provide scanning services, risk management techniques, electronic platform at various ports in the country.

    The Committee on Customs and Excise was given the assignment to investigate the whereabouts of the money.

    Last year, there were also probes and investigations by the House. these include the resolution of July 17, last year, which was stimulated by a tanker tragedy on July 12, last year that led to loss of lives of no fewer than one hundred and fifty persons.

    The House subsequently resolved to investigate the dualisation of the East-West road project. According to them, the condition of the road was a major contributory factor to the accident.

    Also in December, the House Committee on Finance began an intensive probe of remittances by Ministries, Departments and Agencies (MDA).

    Joint Venture Agreements became a source of worry for the House on July 5, last year as it decried what it described as connivance between the Nigerian National Petroleum Coporation (NNPC) and some multi- national oil companies in the Joint Ventures Operations otherwise known as Joint Venture Companies (JVC).

    Consequently, Com

    mittee on Petrouleum (Up

    stream) was mandated to investigate the operations of Joint Venture Agreements (JVA) in respect of revenue leakages.

    Additionally, a forensic review of the JVC records to establish the amount of income tax that had accrued to Joint Venture partners in the past seven years and the amount remitted to the Federation Account was to be carried out.

    According to the lawmakers, the country has been denied funds that could have accrued to it from some benefits from the Joint Ventures. The report is yet to be submitted.

    Sequel to what the House considered a faulty administration and payment of pensions and gratuities to retired officers of the Custom, Immigration and Prisons Office (CIPPO) the House resolved to set up an Ad – hoc Committee to carry out an investigation on the issues on June 21, last year.

    The resolution of the lawmakers followed the adoption of a motion sponsored by Jerry Alagbaoso ( PDP, Imo ) who noted that the introduction of contributory pension has created many avoidable challenges for those retired before the scheme.

    Though the committee was given six weeks to report back after being constituted, the investigation is still said to be ongoing.

    Reps began the probe of tax evading companies on May 24, last year by investigating all forms of unpaid taxes to the Federal Government by corporate organisations in country with a view of taking action on how to recover them.

    The decision of the lawmakers followed the adoption of a motion sponsored by Babangida Ibrahim (CPC, Katsina) who regretted that all revenues accruing to the Federal Government have been dwindling in recent times.

    On May 16, last year, the lawmakers decided to investigate the state of the airports security system in the country. According to the lawmakers, in view of the prevailing global security challenges and the on-going renovation at the airports by the Federal Ministry of Aviation, it has become pertinent to adopt preventive measures against breach of passenger and aircraft safety in the country.

    Reps, on May 3, last year, summoned the Minister for Education over illegal loans from agencies, parastatals. The lawmaker alleged that the Federal Ministry of Education had been obtaining illegal loans from parastatals and agencies under its supervision over the years,

    The issue of the N6.1b sim card registration by the Nigerian Communications Commission (NCC) came to the fore on April 26, 2012 as Reps purposed to investigate NCC After faulting its handling of the N6.2b Subscribers Identity Module (SIM) card registration.

    The Reps expressed doubts on the sincerity of the telecommunication regulatory body on the registration process affirming that Nigerians have been deceived.

    The House, on April 3, last year, waded into the N42b revenue generated for the Federal Airport Authority of Nigeria (FAAN) by Maevis Ltd under a Public Private Partnership (PPP) and expressed its determination to ascertain the true position of the controversial revenue

    The decision of the lawmakers followed the absence of FAAN at a hearing organised by Committee on Treaties and Agreement into breach of contract between the airport authority and Maevis Ltd.

    On March 28, 2012, Reps queried the Federal Government over deductions/ withdrawals from Stabilisation Account and described the withdrawals as illegal. specifically, the lawmakers questioned specifically, the withdrawal of N114b from the account in eight months and expressed willingness to investigate the matter.

    They insisted that the revenue sharing laws provide for the remittance of 0.5 per cent of funds accruing to the Federation Account to be kept in the Stabilization Account. They subsequently mandated the Committees on Appropriation and Finance to investigate the issue and determine the amount of monies so far withdrawn, in addition to ascertaining the legality or otherwise of the expenditure made from the account. The Committees were given four weeks to report back to the House.

    On February 23, last year, members decided to investigate poor quality of police welfare and sought immediate compensation for families of fallen officers The investigation was also to identify factors responsible for the poor quality of police kits and the prevailing welfare condition of the personnel of the Nigerian Police.

    On that day, the lawmakers urged the Federal Government to immediately award scholarships to the children of Sergeant Sunday Bandang, who was blown up while attempting to defuse a suspected Improvised Explosive Device (IED) in Kaduna on February 14, last year .

    According to Rasaq Bello-Osagie (ACN, Edo) and 64 others in a motion seeking to find solution to the plight of policemen in the country regretted that policemen wear uniforms of various texture as well as different kinds of boots and sometimes found wearing bathroom slippers or sandals while on duty.

    On February 14, last year, the House of Representatives Committee on Public Procurement questioned the Minister of Defence, Haliru Bello over the contract for the purchase of 4 fairly used 332 C1/B1 Helicopters worth 65 million Euros.

    The contract, which was with the French government, was approved by the Federal Executive Council (FEC) and was awarded on August 4, 2011.

    The Jumoke Okoya-Thomas-headed committee, during an interactive session with the ministry at the National Assembly also took the Minister to task over the maintenance contract for two C-130H Aircraft (NAF 912 and the NAF 918) with the American Government worth N2.8 billion.

    While the compendium from the Bureau of Public Procurement shows that the purchase of the helicopters from France have been processed and paid for, the Minister said the contract was cancelled and that the ministry never took delivery of the helicopters.

    These are some of the investigations the House has embarked on sequel to requests of members or trending national concerns. While some people said they were stimulated by patriotic zeal and nationalistic concerns, others presented opposing arguments.

  • Govt votes $2.6b PHCN cash for workers’ pay

    Govt votes $2.6b PHCN cash for workers’ pay

    THE $2.6 billion (about N415.2 billion) realised from the unbundling of the Power Holding Company of Nigeria (PHCN) will be used to defray the workers’ benefits, Director-General of the Bureau of Public Enterprises (BPE) Benjamin Dikki said yesterday.

    Dikki said there was delay in paying some workers because of the differences in names, multiple Retirement Savings Accounts (RSA), wrong account numbers, among others.

    He said the funds required for the exercise had been remitted to the Office of the Accountant-General of the Federation (OAGF) who has remitted same to the banks for payment.

    In a statement in Abuja, BPE Director of Communications Mr. Chigbo Anichebe said Dikki spoke in Abeokuta, Ogun State capital, while fielding questions from reporters at the funeral of the mother of the Chairman, Senate Committee on Privatisation and Commercialisation, Senator Olugbenga Obadara.

    He said as auditors verified and reconciled these differences, payments would be concluded as expeditiously as possible.

    The statement quoted Dikki as saying the Federal Government was committed to concluding the payment of all verified entitlements of PHCN successor-companies, workers before the end of the second week of October.