Reps quiz AGF over $11bn allegedly withdrawn from Excess Crude Account for power sector

The House of Representatives on Wednesday demanded documentary evidence for over $11 billion withdrawn from the Excess Crude Account between 2005 and 2007 by the President Olusegun Obasanjo’s administration.

The Chairman, Ad-hoc Committee on Power Sector Review, Hon. Ado Doguwa issued the directive after the presentation of the Accountant General of the Federation (AGF), Mr Ahmed Idris who announced that total sum of $8.234 billion was expended between 2005 and 2007 deducted from the Excess Crude Account as approved by Federal Executive Council comprising the State Governors.

According to the document seen by Tribune Online, President Obasanjo informed the National Assembly via a letter Ref. No: PRES/134 of 9th September 2005.

The document showed that a total sum of $2,859,390,31.61 was released from the Excess Crude Savings Account for the National Integrated Power Project (NIPP) projects from 2005 to 2007. You may wish to note that mandates were issued to Central Bank of Nigeria (CBN) for the total sum of $3,068,167,378.92. However, mandates for the sum of $364,513,747.31 were not applied by CBN and the total sum of $364,513,747.31 was reversed.

“Subsequently, approval was given to use part of the unapplied mandates for the payment of $155,736,700 to Kaztec Engineering Ltd, leaving a balance of $208,777,047.31 as analysed in the summary and Ledger.

“On 19th June 2008, the National Economic Council approved the sum of $5.375 billion be sourced from Excess Crude Savings Account by Federal, States and Local Government Councils in the sum of $2,463,448,500, $1,948,244,000 and $963,307,500 respectively and to be utilized on the Emergency Power projects. The total amount withdrawn for the power project from ECA was $8,234,390,331.61,” the AGF’s document stated.

In a letter dated November 23rd, 2005, with Ref. No: PRES/87/111 signed by Taiwo Ojo, Special Assistant to the President in reference to a letter with Ref. No: FMP&S/HM/ABJ/033 dated 22nd November 2005, conveyed the approval of Mr President for the approval of $2.5 billion (N309.7 billion) for the implementation of Niger Delta Integrated National Power Project.

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The breakdown of the funding of the Niger Delta Power Holding Company (NDPHC) and National Integrated Power Projects contributed by the three tiers of government showed that Federal Government contributed a total sum of $3,773,952,839.22 (45.83%); States contributed $2,984,670,057.16 (36.25%) while Local Government Councils contributed $1,475,767,435.23 (17.92%).

In his intervention, Hon. Doguwa who alleged that there were discrepancies in the total amount withdrawn from the Excess Crude Account and the N1.3 trillion announced by Federal Ministry of Finance in its submission, stressed the need for clarification on the status of the additional $2.9 billion withdrawn from the ECA as well as the status of the N600 billion payment assurance facility in 2019 as well as the sum of N701 billion loan to Nigerian Bulk Electricity Trading (NBET) company between 2017 and 2018.

He observed that the President’s letter (Ref. No: PRES/134 dated 9th September 2005) sent to the President of the Senate and the Speaker of the House of Representatives, referred to by the Accountant General of the Federation could be a mere notice for the record or normal record-keeping, hence the need to produce the copies of approval for the additional approval to the tune of $2.9 billion, being the clearing point for all financial transactions for the Federal Government.

While responding to question bothering on the refund of the $8,234,390,331.61 withdrawn from the Excess Crude Savings Account from the privatization proceeds as encapsulated in the President’s letter, the Accountant General of the Federation who answered in the negative, stated that: “So far the treasury has not seen anything being paid back. Yet efforts are ongoing towards this direction.”

While responding to question from the Chairman, House Committee on Power, Hon. Dau Aliyu Magaji on the N701 billion released to NBET and N600 billion released in 2019, Mr Idris denied knowledge of the funds stressing that the “payment outside treasury, we are not aware of it.”

He, however, noted that funding arrangement to meet the power sector and other intervention programmes could be sourced from the Development Partners or any other sources including roads, as applicable to the CBN intervention scheme for the Anchor Borrowers Scheme for the agricultural sector.

While responding to the question on his personal assessment of the power sector and whether Nigeria gets value for the investments made so far, Mr Idris said: “I don’t know. My assessment is that we are still struggling to get right the infrastructure.”

On her part, the Director-General of Debts Management Office (DMO), Ms Patience Oniha disclosed that $1 billion Eurobond commercial loan was sourced from investors at commercial rate sequel to the approvals of the Federal Executive Council and National Assembly for the power sector.

According to her, $500 million was for 5 years while an additional $500 million was for 10 years repayment.

She also notified the lawmakers of the $150 million loan sourced by Rural electrification Agency (REA) under the Nigerian electrification Project, out of which $0.71 million (representing 1.47%) has so far been released to the agency by the Development Partner.

She added that the loan attracts 5 years moratorium and 20 years repayment plan.

While ruling, Hon. Doguwa who expressed displeasure over the refusal of the CBN Governor, Mr Godwin Emefiele to honour the 3 invitations sent to him by the Ad-hoc Committee threatened that the House and indeed the Committee will be compelled to unleash its legislative powers to compel his appearance if he fails to appear at the next hearing, adding that the National Assembly cannot afford to allow any form of denigration of its powers by any political appointees of Mr President.

He added that such political appointees who demonstrate such attitude are the ones putting the cordial relationship between the Executive and Legislature into jeopardy.

 

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