$174m AFDB loan: nass summons Fashola

The Committees on Power in the Senate and House of Representatives have queried the Minister of Power, Works and Housing, Mr Babatunde Raji Fashola over what it called the sudden change in the leadership of the Transmission Company of Nigeria (TCN) ahead of Nigeria’s receipt of a $174 million loan from African Development Bank (AfDB).

The two committees insisted that the Federal Government should repudiate the conditions attached to the loan, one of which is the take over of TCN by AfDB.

According to the National Assembly, the Minister of Power had quietly effected a change in the leadership of TCN in fulfilment  of the conditions to obtain the $174 million from AfDB.

In a statement jointly signed by  chairman Senate Committee, Senator Enyinnaya Abaribe and his House counterpart, Hon Daniel Asuquo, the National Assembly summoned Fashola to appear before the joint Committee on Monday.

It was learnt that AfDB had made the take over of TCN a  condition for the loan and that President Muhammadu Buhari had approved the plan to hand over the Transmission Company to AfDB but the National Assembly believes the otherwise.

Fashola was said to have replaced TCN’s Managing  Director, Abubakar Atiku Tambuwal with Usman Gur Muhammed in readiness for the loan.

But the Senate and the House of Representatives have opposed the conditions attached  to the loan which they said Nigeria was entitled to as a major donor.

The minister  was asked to appear in the National Assembly on Monday to explain the reasons for a change in the leadeship of TCN.

The lawmakers also asked the minister to revert to the status quo ante at the TCN before coming for the Monday meeting.

The statement titled: “The TCN Leadership Crisis and its Effect on The Power Sector” reads: “The Joint Committee on Power of the National Assembly, acting on its powers of oversight, received disturbing correspondences and information regarding the sudden change in the leadership of TCN and its attendant crisis.

“Considering the urgency of the matter, especially due to the present economic recession, the Joint Committee resolved to invite the Hon. Minister of Power, Works and Housing to explain the decision of the Ministry to “import” from the ADB (one of the lenders to TCN) yet another duplication of the Manitoba experience which had left a negative impression on the fortunes of TCN and indeed the power sector.

“The Joint Committee invited the Honourable. Minister for Power, Work & Housing to appear before the committee along with relevant officials on the 3rd of February which he could not appear.

“Consequently, the Joint Committee met and resolved as follows:

(a) That the status quo ante in respect of the management of TCN be maintained;

(b) That the minister should endeavor to appear before the committee on Monday, 6th February, 2017 by 10 am. and

(c) That all TCN staff and relevant stakeholders should maintain the peace in the overall interest of the nation”

“It was learnt that law- makers are very concerned about  some issues which may arise from the loan deal if implemented.

“The propriety of allowing the ADB to run the TCN even when it is yet to be privatised;the legality of removing the TCN management, which is just midway into its tenure; and the arrangement under which the critical national asset will be given to the ADB.”