Kunle Aderinokun
26 June 2008
Abuja — House of Representatives Speaker Dimeji Bankole disclosed yesterday that only $13.5 billion was released for "unidentifiable" power projects out of the $16 billion which he claimed had been appropriated during former President Olusegun Obasanjo administration.
Also, he said the privatisation of Ajaokuta Steel Complex, one of the country's prime state enterprises, which was built at about $4.7 billion and concessioned at a paltry $300 million, was a product of "unjust law" and an example of how things were not properly done in the country.
Ajaokuta Steel complex was concessioned to Global Infrastructure Nigeria Limited at N6.576 billion on May 17, 2007, (amongst 23 others that were sold on the same day), in the twilight of the Obasanjo administration.
Bankole, who addressed participants at the high-level dialogue between the House and Business Leaders in Nigeria, said the power probe exposed a lot of "shenanigan" that characterised projects award and implementation in the immediate past administration.
The interactive forum, organised by Africa Business Roundtable (ABR) and MessageWise Limited, was sponsored by Diamond Bank Plc and Acorn Oil Limited.
He lamented that despite the huge amount of money sunk into the power projects, the nation now generates less than the megawatts of electricity generated 10 years ago.
"We probed the power sector and discovered a lot of shenanigan. Obasanjo administration released only $13.5 billion out of $16 billion appropriated for power projects with no identified projects and results,
"We generated less than what we generated more than 10 years ago," he said.
According to him, "Ajaokuta arrangement has become obviously painful to us that things were not properly done. Ajaokuta was built at about $4.7 billion but was sold for about $300 million.
"we cannot have transportation without a steel sector. we will look at such arrangement and ask for your advice.
However, Bankole condemned the consolidation for dashing the hope of Nigerians who were made to believe the economy would be better after consolidation, in terms of low interest rates, employment amongst others.
"We were told that after consolidation, interest rate will go down and that there would be employment but we have not seen that. I read Economics but when I look at these things that are happening now, I don't understand."
Earlier in his remarks, Chairman, NEPAD Business Group and Executive President, ABR, Alhaji Bamanga Tukur, noted that the forum signalled the foundation of a partnership between the law making arm of government and those for whom laws are made.
He said: "It is a collaboration which should be ongoing between government and business for expanding the frontiers of prosperity for citizenry, many of whom are presently trapped below poverty line. The process which we embark upon today promises to broaden and deepen the gains of our democracy though the broad-based consultation which is at the heart of decision making under a system driven by the rule of law."
Managing Director of Diamond Bank Emeka Onwuka said many challenges abound in doing business in the country, believing that appropriate legislation could go a long way towards setting the stage to bring about the needed solution.
He suggested that to address the existing challenges for the purpose of creating a better business environment, additional legislation or amendments to some existing laws were required.
He listed the areas to look at to include "land us act; port reforms; tax reforms; Nigerian commercial laws, most of which are outdated; concessioning of infrastructure; harmonisation of the various laws relating to capital market and; establishment of financial or commercial courts."
Former House Speaker Ghali Na'Abba who delivered a keynote address said "through dialogue, I have no doubt in my mind that the legislature and the business community could further the cause of business especially in the area of infrastructure."
According to him, "the House under my leadership had started this endeavour already, 18 bills in this enterprise have been produced and passage of the bills into law has become a problem. I therefore urge the House to once more look at the bills again.
"Suffice to say that the Executive arm under General Obasanjo had plagiarised some of them,"
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