Leadership (Abuja)

Nigeria: Controversy Looms Over Dissolution of REA

Stanley Nkwocha

7 November 2009


Abuja — The last may not have been heard of the controversial Rural Electrification Agency of Nigeria which months ago was rocked by a N5.2billion scam as its immediate closure by the minister of state for power is generating tension.

Affected staff of the agency who were caught in the impromptu closure are accusing the Ministry of Power of usurping the powers of the Senate in closing down the agency even when the Senate as the sole body with the power to order its closure via a repeal of the Act establishing it was yet to deliberate on it.

A petition written to the Senate by concerned staff of the agency, mostly those left idle and jobless after the sudden closure of the agency, are asking the Presidency and the Senate to intervene in what they term an obvious abuse of due process which has led to the fate of over 200 staffers of the agency to hang in the balance.

Lamenting their fate since the closure of the agency, the group described their condition as pitiable, saying the appointment of a sole administrator for the agency to wind up its activities has not helped matters as the agency lacks powers to approve sundry expenses, much more pay staff salaries without recourse to the minister.

A letter addressed to the interim administrator from the permanent secretary, Ministry of Power, J.B Sali, on September 15, 2009, entitled Re: Winding Up of The Rural Electrification Agency (REA), obtained by LEADERSHIP SUNDAY, read in part, "Further to the meeting held with the Honourable Minister of State for Power on Thursday, September 10, 2009 on the above subject, I wish to draw your attention to the following decisions for your information and immediate implementation where applicable, that the Rural Electrification Agency(REA) is hereby closed; that all outstanding rents due for payments should be compiled and forwarded to the ministry and that no further tenancy agreement is to be renewed on any rented property; all signposts of the agency should be removed wherever they exist; only expenditure related to staff emoluments and welfare should be processed for approval and any correspondence to the defunct REA should henceforth be addressed to the ministry."

Since then, the workers allege that nothing has been done about their case as they have been kept in the dark. But a source at the Ministry of Power who pleaded anonymity, however, said the cases of staff and their impending actions had been referred to the head of service for further directives.

The REA established by Section 88(1) of the Electric Power Sector Reform Act, 2005, started its operation on March 16, 2006, with its operational headquarters in Abuja. It ran into troubled waters last December when the agency was engulfed in contract scandal amounting to N5.2billion as a result of which a former permanent secretary, managing director, four management staff of the agency, Senator Nicholas Ugbane - former Senate committee chairman on rural development, and Hon Ndudi Elumelu were indicted. The case is now before a Federal High Court in Abuja.

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