Leadership (Abuja)
Philip Nyam
15 March 2008
The House of Representatives committee investigating the alleged wastage of $16 billion in the power sector in the last eight years, Friday queried the N15, 881,489,984.50k paid to Rockson Engineering Limited (REL) for the Egbema Power project valued at N16, 678,677,726.20k.
The committee has also ordered the governor of Central Bank of Nigeria (CBN),Prof. Chukwuma Soludo to appear before it next Monday to explain how much was released by the apex bank between 1999 and 2007 for the power sector.Deputy governor, Operations, Suleiman Barau, who represented Soludo at the public hearing was however turned back by the committee.
The panel members expressed dismay that a former legislator, Senator Anietie Okon was the chairman of the company, which in their estimation, did not deliver on the contract awarded, even though payments were advanced to the company.
Managing Director of the National Integrated Power Project (NIPP), Mr James Olotu had told the panel that Letters of Credit worth 1,463,381,898.88 billion dollars and 224,600.24 million Euro were opened for the various contractors handling the uncompleted NIPP contracts scattered all over the country.
MD of National Integrated Power Project, Mr. James Olotu, who listed the beneficiary companies as 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).
According to the NIPP boss, out of this amount, he said the companies handling the jobs had so far drawn down a total of ($414, 944, 42.08 million) and (E30, 119,117.77 million) for both the foreign components and local components of the contracts.
The amount drawn in Euro, he said, were; Matarik (E11,955.08m); Energo Nig (E6,471,558m); SeltaSpar (E5,383,667); Pivot (E620,327.8); Barbak (E6,297,49)
Testifying before the committee, chairman of Rockson Engineering, Senator Anietie Okon insisted that the amount represents down payment on the project as the company through Intercontinental Bank that opened a Letter of Credit to the tune of $80 million for erection and procurement of equipment.
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