Tashikalmah Hallah
15 March 2008
Abuja — The Managing Director of the National Integrated Power Project, NIPP, Mr James Olotu, has said that electricity contracts of $1.4 billion and €224.6 million awarded under the scheme were illegal, as they were not backed up with the enabling laws of the federation.
The revelation is coming on the trail of claims by the NIPP boss that only former President Olusegun Obasanjo and the former Minister of Power and Steel, Senator Liyel Imoke now Governor of Cross Rivers awarded the contracts without reference to ministry officials.
According to Olotu, NIPP is not a legal entity but was conscripted by the Obasanjo administration which awarded contracts amounting $1,463,381,898.88billion and €224,600.24 million, with letters of Credits opened for the various contractors handling the failed projects all over the country.
"There are fundamental concepts that surround the NIPP. It's from the sourcing of the funds by the three tiers of government. We have not fashioned out a management standard to solve the problem.
The NIPP is a conglomeration of experts borrowed to form a unit. Nigerians who are supposed to monitor and take over from the experts are not there. We need to employ and deploy the Nigerians to take over from the expatriates", he added.
He said that both the three tiers of government contributed to the project, which buttresses the claim by Gabriel Suswan, the Governor of Benue State that the 36 states of the federation as well as the 774 local government areas contributed $3.4b to fund NIPP through deductions made from their own shares in the Excess crude account.
Suswan explained that the matter is now before the courts for determination pointing out that the Governors opted out for the courts following demands of more contributions and the NIPP has accounted for the previous expenditures.
Describing the award of the contracts as enmeshed in illegality, the NIPP boss told the probe panel the various power projects were awarded without competitive bidding and that Obasanjo and Imoke awarded the contracts without consultation with other relevant agencies.
He said most of the contracts for the NIPP were signed under the Niger Delta Power Holding Company Plc, adding that his office was side track and declared that all the contracts awarded lacked competitive tendering.
"If my office was not side tracked there would have been an improvement. It has to do with the abuse of Due Process. For instance I am the MD but the Director of Technical Services Mr CNO Nwachukwu who is the chairman technical approves and send to the Committee"
He also disputed the figure of vehicles bought by the NIPP for the jobs when questioned on the 700 as listed by the House. "I don't think that is true. We have about 250 - 300 vehicles."
At the Day-4 hearing session of the Committee yesterday at the National Assembly, Olotu said out of this amount, the companies handling the jobs have drawn a total of $414, 944, 42.08 million and €30, 119,117.77 million for both the foreign and local components of the contracts.
However, the Committee on Power and Steel yesterday queried the over N84 billion contracts paid to Rockson Engineering limited for several jobs carried out in the Niger Delta area. The Committee said it was worried that NIPP paid Rockson Engineering limited N15, 881,489,984.50k for the Egbema Power project valued at N16, 678,677,726.20k, representing 92 percent while the work done was 19 percent.
Olotu explained that the 19 percent assessment of the work done was taken in November 2007 adding that, "since then I am aware that appreciable progress has been achieved by the Company", but he failed to respond to the document he submitted to the MPs detailing the assessment to December 13, last year.
He told the lawmakers that "we don't have control over payment, the Accountant General of the Federation and the Central Bank as well. Projects management funds are not paid to the NIPP. As the MD we don't maintain an account with the CBN. The Chairman of the Steering Committee releases the funds and then it was Senator Liyel Imoke. Now it is the Minister for Energy (power) now approves. I don't have the power to do that."
He revealed that NIPP has opened Letters of credit amounting to $1,463,381,898.88billion and €224,600.24 million in respect of the contracts awarded for the power projects.
Beneficiary companies in the LC's he said included; General Electric for Supply, $196million; Marubeni $49.935m, Marubeni $40,321,527m, Marubeni $16,318.3m, General Electric $19, 622,.96m,Rockson Engineering $13.494,753.93m, Rockson Engineering $13.999.249.95m, Rockson Engineering $16,718,34.93m, Rockson Engineering $16,7450, North China Electric Company $20,373.84m, Okwagu International $70m, Pivot $4,35, Pivot $108,959.9.8m, and Steers engineering $138,983.89m.
Also he said that about €224,600.24 million were draw down and listed the beneficiary companies as, Matarik €11,955.08m, Energo Nig €6,471,558m, SeltaSpar €5,383,667, Pivot € 620,327.8 and Barbak €6,297,49.
Senator Anietie Okon the chairman of the Company, who appeared yesterday, insisted that the amount represents down payment on the project as Rockson through Intercontinental Bank opened a Letter of Credit with the Intercontinental Bank Plc to the tune of $80 million for erection and procurement of services.
The Rockson Chairman also told the lawmakers that the company loaned the amount to settle the communities and relocate them for the projects to take off unhindered, and his effort to link his inability to deliver the project on schedule to the instability in the Niger/Delta was resisted by the MPs.
On the Gbarain Bayelsa state project being handled by Rockson the House was told that the NIPP has so far paid N17.6 billion out of a contract sum of N18.25 billion for the local component leaving a balance of N772 million, while the company has so far drawn $84 million from the offshore component of the contract.
The NIPP also confirmed that only 11 per cent of work has been done which Senator Okon claimed was 50 per cent and said he can not explain where the balance of the offshore component is kept by the government officials.
Donald Egberebin, one of the committee members from Bayelsa state however disputed the claims by most of the companies operating in the area are having problems in their operations as Gbarain is one of the few communities in the state that is not in the riverine area.
The Committee warned that Contractors should not hide under the cloak of militancy in the Niger Delta region to cover their inefficiency.
Also yesterday, the lawmakers were angered the CBN Governor, Charles Soludo who was said to have travelled to Jos and sent the Deputy Governor in charge of Operation Suleiman Barau to testify before the committee.
Suleiman's explanation that the CBN governor went for an equally important assignment was not acceptable to the committee who said the Executive has not been fair to providing relevant information's needed to resolve the log jam.
President of the Nigeria Labour Congress Comrade Omar Wahid who was at the venue of the Hearing yesterday also told the House that "Nigerians are guppy with the investigative hearing. It is close to the heart of Nigerians. It is sad that Brazil with a population of less that 50 million people generates 87,000 Mega Watts while Nigeria generates less than 2,700MW is a big shame.
But it should not be like other Public Hearings and you must make sure that you conclude it to the letter and recommend the prosecution of those found wanting".
Also, Mr Eziuche Ubani Chairman House Committee told newsmen that the National Assembly should share part of the blame. "We should share part of the blame as lawmakers. We also shirked in our responsibilities in the past. We must reinvigorate our oversight function and we must take it seriously. We need capacity to do all this".
Ubani disclosed that "what we have seen so far from the probe has surpassed our expectations. It is sad that equipment and money for jobs were paid even in excess without value or supply.
The issue of power is tragic. No matter the projections you make, the problem of buying electricity generating sets and fuelling it is making our products uncompetitive in the market.
He insisted that "people must do the right thing. Civil and Public servants must be alive to their responsibilities. Nigerians are awaiting the outcome of the Hearing".
Ubani however explained that the lawmakers though not constitutional empowered to prosecute, will make strong recommendations to the Office of the Attorney General of the Federation and the relevant agencies on measure top be taken against those fond to have compromised to siphon the funds meant for the power sector."
"We don't have powers to prosecute. But we will make very strong recommendations to the Office of the Attorney General of the Federation and the relevant agencies.
But as the public hearing continues we must invoke the relevant sections of the constitution against those who refuse to honour the invitation. We are surely going to I invoke it at the appropriate time".
Then, yesterday, Lagos State Governor Babatunde Fashola yesterday told the House Committee on Power and Steel that the body of Governors were against NIPP because it became doubtful whether the project would be realisable at all. The body of Governors had earlier agreed with the Federal government on the deductions to be made from the excess crude oil account to fund the project.
According to him, the governors had expressed concern at its meeting that the expected progress has not been made and this informed the decision announced by the Chairman of the Governors Forum about the way forward. "We were wondering, 'is this a project that could be completed given the expenses and the deductions that had been made from the federation account that is not commensurate with the level of performance that we had seen?' As investors we were asking ourselves do we continue in this venture. That really was the underlined factor that led to the conclusion of the announcement to withdraw from the project," he said.
Governor Fashola also said none of the NIPP project in Lagos State, which includes the supply of transformers for the rural electrification project to the state, was executed.
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The Efcc has been doing a good job so far, we want more from them in our quest to apprehending these people that made Nigeria the laughing stock,as for the police, complement your work in trying to eradicate petty criminality with an equally and more important fight against the real and bigger criminals that are grdually but trully killing Nigeria.As for the way they (police) have conducted themselves in the past, we post a vote of no confidence hence our frustrations and anger be that as it is every country is supposed to have a police that,ll tackle all sorts of crimes in conjuction with relevant agencies,that,s what we expect from our police force,don,t only go after the petty criminals,go after the real and most dangerous one,s amongst us,only then can we begin to trust you again, or is it that you are (police) collude with the corrupt politicians and that make,s you not to apprehend them?We are waiting.
Obasanjo's administration was evil and did Nigeria no good. He (Obasanjo) must be called to testify why he lied to Nigerians. He commissioned projects that have not even been started. As the chief executive, he will not claim to be unaware of all this mess and must be held accountable.
NIGERIA POLICE.......LET ME NOT EVEN GO THERE,AT LEAST LET ME BE PATRIOTIC U GUYS ARE A SHAME ALL THE IG OF POLICE THAT WE HAVE SEEN IN NIGERIA SINCE THE BEGINNING OF TIME ARE NOT WORTHY OF ANY HONORARY TITLE AND LL U WEAK ASS FAKE FAVOUR SEEKING COMPANIES AND ORGANISATION GIVING AWARDS TO THEM SHAME ON YOU IT IS ONY WHEN BIG CRIMINAL LIKE LUCKY IGBINEDION,JAMES IBORI,IBRAHIM BABANGIDA UMARU DIKKO,JERRY GANA ETC ARE BEING PROSECUTED FOR LOOTIN AND JAILED ONLY WHEN NIGERIA POLICE DONT TAKE 20 NAIRA ON CHEEK POINT,ONLY WHEN BILLIONS OF NAIRA IS FOUND IN THE SENATE BUILDING AND SOMEONE INFLUENCIAL AND GUILTY GOES TO JAIL, ONLY WHEN NOT ONLY THE LAW IS MADE FOR THE POOR OF POLITICAL UNDERWEIGHT THEN WILL IT BE POSSIBLE FOR CONTRACTS TO BE AWARDED AND FULLY EXECUTED . BEWARE NIGERIANS ARE FED UP AND DONT BE FOOLED ONE DAY BE ONE DAY MONKEY GO GO MARKET E NO GO COME BACK
As an observer who is very interested in seeing that truth and justice prevails in this ongoing exercise, the amount of projecjs embarked on by the Obasanjo administration and the way the projects were awarded to various contractors and consultants and not just one contractor (which normally should have allowed the projects to continue simultaneously and yield quick results, all things being equal) shows how concerned and indefatigably and very likely with many sleepless nights Obasanjo's administration should have been and laboured about the power situation in the country. I think he avowedly declared it as a menace which he intented to eliminate. However, it is one thing for a President to be enthusiastic and labour to solve a problem, it is another thing to get the relevant ministries and various government organizations to follow up and see that the projects embarked on by the President to solve the problem are monitored to arrive at their successful completion. Furthermore, with the change in administration in April last year, it is expected that the new admnistration should have seamlessly followed up with the monitoring and supervision of all these projects not completed by the former administration until their sucessful completion. In the interest of the country, it is only the synergy and coorperation of one adminstration and another and not the obviously unproductive exercise of displaying stark ignorance by laying blames will produce positive result to move the cuntry forward. With respect to uncompleted projects by contractors, It absolutely conter productive to ask the contracors to refund money for the uncompleted portion of the project, rather the contrators HAVE TO COMPLETE PROJECT AS PER CONTRACT SIGNED. Ofcourse, where the project is located in areas of insecurity like the Niger Delta area, the government SHOULD PROVIDE proper security. It is interesting to note as pointed out by the governor of Lagos state that contracts awarded to NIPP in Lagos state are still not yet done. People have to learn to be empathic!
Hello Nigerians, all these are wating of time and game. Its good that You finds these out. But i ask, what happens after this? what happens to the Thieves? and what happens to the Money? do we hear the news again? No. we will be more satisfied if we hear the news of what happenned next. hahahaa
who will tell me what happenned about Babangida own? hahaha. who will also tell about Abach and others. ??? No one. We only hears stories like this, but what happens next? NOTHING. so you better dont give us this stories of sadness. no.
but alot of people are dieing in prisons for nothing.
God bless Nigeria i love her and i love Africa.
Efcc well done, but we still want them to prove to all nigeria that they are genuene not fake if they can get to the truth of the matter because nigeri abroad are washing them because we are sick and fed up with all the story they are given us More so obasanjo is not a good leader he put us into all this mess he and his men went to goverment and steal nigeria money he should be called together with Atiku they use nigeria money to buy property abroad. we hope yardua will deliver us from this mess because what nigeria want now is to make things work for us aned we want obasanjo and his men to be arrested and put to jail for live because all money recoverd from Abach account where is the money where the obasanjo and his men put the money we want him to answer us where he put the money
The truth is that nigeria is a BIG SHAME, a laughing stock and a harvesting ground for all the dubious elements around the globe. Nigerians are watching and waiting to see what the outcome of this investigation will be. If justice is not brought to Obasanjo for crimes against humanity now it will surely visit him unawaited sometimes in the near future. Some suggestion that he should be dragded out one early morning and shot in cold blood seems to have credence. Nigeria can only get serious in fighting this monster called corruption if DEATH PENALTY is the only justice for politicians who are rendering the entire Black race(nigeria being the largest) useless through this robery.
Efcc, police stop pursueing petty thieves and common criminals and set your sights on the real deal.With all these allegations of contracts awarded that were not carried out by the last administration we wonder what they(efcc,police) are waiting for before they get down to the business of arresting and prosecuting these corrupt officials that have succeded in making Nigeria a hell to live in(no water,no light, no security) because of their greed and corrupt ways.Stop pretending to be doing your jobs focussing on the after effect at the expence of the cause,the world is watching to see how far we as a nation are going to handle these clear case of dayinlight robbery perpetrated by some people against the majority of Nigerians.If only the police can spend a fraction of the harrasment they met out to ordinary citizens on these known enemies of the land(corrupt politicians) we think that Nigeria would have been a better place to live in today.Police wake up from your sleep and backwardness and start to confront the challenges for which you were created in the first place.