Reps to probe NDPHC over $2.5bn projects

The House of Representatives, on Thursday mandated its committee on power to investigate the Niger Delta power Holding Company (NDPHC), over allegations of infractions in the sale of assets under the National Integrated Power Project (NIPP) involving over $2.5bn projects.

This followed the adoption of a motion titled “Constitutional breaches, impunity and other infractions against the Niger Delta Power Holding Company (NDPHC) and the need to Ensure Probity and enforcement of statutory Oversight Functions” moved by Hon. Mark Gbillah which was unanimously adopted by members through a voice vote.

While moving the motion, Hon Gbillah explained that the investigation had become necessary in order to ascertain the veracity of the infractions committed by NDPHC.

The lawmaker wanted the investigation to involve all relevant stakeholders, who would assist the committee to identify any constitutional breaches by the power company.

Hon Gbillah pointed out that, the government incorporated NDPHC as a limited liability company, as   a special purpose vehicle to manage NIPP assets and projects that gulped 2.5 billion dollars from the excess crude account.

He said that the NIPP was conceptualized in 2004, to enhance Nigeria’s electricity supply before the full implementation of the private sector driven Electric Power Sector Reform Act.

According to him, “the NIPP encompassed projects from every aspect of the electricity value chain, including generation, transmission and distribution.”

“Thus, it required an initial Investment in the construction of 10 power plants in different parts of the country, amongst several other projects.”

He expressed concern that the company with majority shareholding, held by the Federal Government which managed over 12 billion dollars, approved by the National Assembly did not submit its annual budget and project plans for appropriation.

According to him, “the NDPHC generated an operating surplus which cannot be determined because it was neither divulged nor paid into the coffers of the Federal Government but expended by the company without legislative approval

“NDPHC has commenced the sale of NIPP assets, including power plants, and is also awarding numerous inflated contracts without due process, and has continued to pay outrageous amounts as way-leave payments to communities

“NDPHC is further reported to have received funding of about 9 billion dollars from the Central Bank of Nigeria (CBN), for priority projects but has allegedly diverted these funds to other areas.

Hon Gbillah accused a local contractor, Rockson Engineering of refusing to hand over four power plants it was awarded in controversial circumstances, and holding the Federal Government to ransom over the completion of the plants.

The lawmaker further expressed worry, that the NDPHC believed that it was only accountable to the Vice President, and had refused to subject itself to the oversight and appropriation roles of the National Assembly.

The Committee is expected to submit its Report to the House within Six weeks, for further legislative action.