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Nigeria: Abdulsalami's Firm Named in Failed Power Contract


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Vanguard (Lagos)

13 March 2008
Posted to the web 14 March 2008

Leon Usigbe, Tordue Salem and Luka Binniyat
Lagos

FORMER Head of State was yesterday named as chairman of Energo Nigeria Limited which, in 2003, got a N19 billion transmission substation contract that has achieved less than five per cent implementation, even after collecting N13 billion of the contract sum.

Managing Director of the company, Mr. Dejan Gerotic, who revealed those behind the firm told the on-going public hearing on the Power Sector in the House of Representatives that the former Head of State became the chairman of the company in 2000.

A member of the House Committee, Hon. Elemuno had asked him to name the former Head of State said to be the company's chairman. Gerotic then said: "General Abdulsalami Abubakar."

He also named as a member of the Board of Directors, former Managing Director of the former National Electric Power Authority (NEPA) and later a Minister, Alhaji Hamza Ibrahim.

The company had been awarded contract for the construction of an EPC 2003 (Lot 3) 330kva substation and New Haven-Ubuoji-Ikot Ekpene transmission line. The offshore component of the contract sum was 72,686,136.24 euros and N4,856,923,918.88 for the onshore component.

According to Mr. Gerotic, execution of the contract which was scheduled to be completed in 2009 had achieved only 30 per cent progress, but the Managing Director of the National Integrated Power Project (NIPP), Mr. James Olotu, disputed this, saying as far as NIPP which monitors the project was concerned, work has reached less than five per cent completion in spite of the huge funds released to the contractors.

Similarly, Mr. Olotu disputed the total amount involved in the offshore component which Mr. Gerotic had given as 72,686,136.24 euros. He said the actual amount was 73,686,136.24 euros, explaining that customs duties might have accounted for the difference.

In his testimony, the Permanent Secretary, Federal Ministry of Energy (Power), Dr. Aliyu Abdullahi, told the panel that for over five years during the Obasanjo administration, the approval of the Ministry was never sought for the failed Integrated Power Project.

Okonjo-Iweala, Imoke, others summoned

The Permanent Secretary's disclosure followed the invitation of Governor Liyel Imoke of Cross River State, former Minister of Finance and currently World Bank Managing Director, Dr. Ngozi Okonjo-Iweala and Mr. Solomon Matankari, former Permanent Secretary, Ministry of Power.

Dr. Abdullahi in his submission said: "The information I got as Permanent Secretary was that over 340 contracts by the Nigerian Integrated Power Projects were approved, while over 300 payments were made."

Ministry disowns contracts

He, however, denied that the NIPP projects were brought to the attention of the Permanent Secretary or any Director at the Ministry.

"The Permanent Secretary is usually the Accounting Officer, but the Accounting Officer then was the Minister of Power, Senator Liyel Imoke. He approved the contracts and they were forwarded to the due process office.

The minister approved everything without the knowledge of any Director or Permanent Secretary," Dr. Abdullahi claimed.

Continuing, he said: "I have visited some of those projects, but no report has been yet submitted to me on any of the power projects by the task force that we set up.

"The contracts were paid for by the Presidential Committee (then headed by Vice-President Atiku Abubakar) and not the Ministry which reported directly to the President.

"We have no record of payment for the contracts in the ministry."

As part of an earlier testimony, Managing Director, NIPP, and a seasoned auditor, Mr. James Olotu, told the Committee that an Atiku-led Presidential Committee, however, passed the mandate to "a steering committee headed by the former Minister of Power, Senator Liyel Imoke, with other members who were the former Minister of Finance, Dr. Ngozi Okonjo-Iweala; former Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Engineer Funso Kupolokun; former MD, NEPA and later Presidential Adviser on Power, Engineer Joseph Makoju."

Other members of the steering committee, according to Mr. Olotu, were "Engineer Seke Somolu and the nine governors of Niger Delta states."

Relevant Links

West Africa
Economy, Business and Finance
Energy
Nigeria

Also testifying, Managing Director of Pivot Engineering, Mr. David Bray, said as the head of the contracting firm, he had never been to the site of the N607,822,970 Enugu-New Haven-9th Mile-Nsukka 132kva Double Circuit Transmission Line electricity project.

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Read comments. Write your own.

Author: chokoneze

Wow i don shelle, With the exception of the eight years of Obasanjo from the west no wonder the Hausa/Fulani boys both in the army uniform and civilian Caftan have been hankering and recycling the office of the Presidency and Head of State respectively.

For the record, Nigerian leadership has been held ram some by the North thus; Sir Bellewa, General Gowon, General Murital, President Shagari, General Buhari, General Babangida, General Abacha, General Abudulsalami, now President Yar'Adua. General/President Obasanjo is the only non- Hausa/Fulani origin by default that ruled Nigeria

Think of it General Abudulsalami was awarded the power contract... [Read Full Text]

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