Reps Investigate N698m Power Projects, N84bn Compensation
The House of Representatives has begun investigation of the Niger Delta Power Holding Company over contracts awarded, projects executed and payment of compensations to communities.
The House on Wednesday mandated the Committee on Power to conduct “a comprehensive investigation into the operational and financial activities of the NDPHC, including all contracts awarded by the company since 2004 and report to the House in four weeks.”
The probe is based on a motion moved by a member, Chisom Dike, at the plenary on Wednesday titled ‘Urgent need to investigate the award of contracts, projects execution and payments of compensations to communities by the NDPHC.’
Dike said, “The House is worried that most of the contracts awarded by the NDPHC, including contracts for the engagements of consultants and insurance companies, are in clear violation of the Public Procurement Act of 2007.
“The House is deeply worried about the widespread cases of non-execution of contracts by contractors of the NDPHC, some of which include the Lot 14 Lekki-Ajah Transmission Line and Lot eight of Ihiala-Orlu Transmission Line.
“The House is disturbed that there are widespread allegations and controversies surrounding the award of contracts by the NDPHC for various projects, including but not limited to contracts and payment of N350m for additional works on Lot 14T Transmission Project, N244m for extra works on the new Abeokuta Transmission Line [Lot 14-E), N104m for Papalanto-old Abeokuta-new Abeokuta 132 KV DC Transmission Line (Lot 14-C).”
He added, “The House again notes that N84bn was approved for payment of compensation to communities where transmission lines of power projects were to be laid.
“Despite the claims that over N50bn had been paid to communities, contractors were said to have been prevented from doing their works by the communities over non-payment of compensation, even as there were allegedly several other bogus payments made on compensation to communities, including N850m as compensation to communities which has generated so much controversy.”
Dike alleged that the manner in which the NDPHC had conducted its business for and on behalf of Nigerians, without corresponding results measured in terms of improvements in power supply over the years had “deeply entrenched corruption, mismanagement and embezzlement of funds meant to be used for the development of the nation’s power sector.”
The Minority Leader, Ndudi Elumelu, while seconding the motion, blamed the crisis in the power sector on corruption and inefficiency.
Elumelu said, “It is inhuman that money will be released but contractors will fail to mobilise to site. In some instances, they will be on site and they will not work. There are so many of such instances.
“Even worse are the consultants who, ab initio, should be the ones representing the Federal Government by ensuring that they file day-to-day reports pertaining to the progress on the sites. They are part of those short-changing Nigerians.”
