Senate Summons NDPHC CEO for Mismanaging $500m Power Assets
Sunday Aborisade in Abuja
The Senate committee on Power has summoned the Managing Director, Niger Delta Power Holding Company (NDPHC) over the alleged mismanagement of $500 million electricity assets.
The senate committee asked the NDPHC boss to account for the circumstances surrounding some fire incidences in some power plants across the country.
In its summon cited by TheCable, the committee added it would investigate the nature of the inferno that consumed some parts of the power plants which led to the loss of substantial electricity generation.
Some of the power plants listed in the summon include Gbarain, which had a fire incident; Ihovbor, with a turbine failure, Olorunsogo, Alaoji, Calabar and Sapele IPPs.
The committee said: “Over 4,000 megawatts (MW) worth of generation assets entrusted to NDPHC have been substantially damaged and about 500MW worth of generation which can easily be translated to over $500 million has been run down by company.
In addition, the committee asked the management of NDPHC to submit a detailed report of the incidents on Friday.
The company is also expected to appear before the committee on power on a scheduled date.
The NDPHC is jointly owned by the federal government, states and LGAs to manage the National Integrated Power Projects (NIPPs).
In July, the House of Representatives had commenced an investigation into the planned sale of five NIPPs belonging to NDPHC by the Bureau of Public Enterprises (BPE).
In a letter cited by TheCable, the house committee on finance asked the minister of finance, minister of power, director-general of BPE, managing director of the Niger Delta Power Holding Company (NDPHC), and the managing director of the Nigeria Bulk Electricity Trading Company (NBET), to provide information and documents “for the committees’ determination on the way forward”.
The lower legislative chamber asked the BPE to halt the sale of five power plants belonging to the NDPHC.
The resolution of the house was sequel to the adoption of a motion sponsored by Magaji Aliyu, chairman of the House of Representatives committee on power.
Magaji had said BPE advertised a request for expression of interest to purchase the power plants, despite that the assets belonged to the three tiers of government.
According to him, the federal government is bent on selling the assets to fund the deficit in the budget without the consent of the other tiers of government and other shareholders.
The committee, in the letter, addressed to the head of agencies and signed by James Faleke, its chairman, said all the transaction processes for the sale of the power plants should be stopped immediately.
“House of representatives has observed with grave concern the proposed sale of the five national integrated power plants (NIPP) namely Benin Generation Company Limited, Calabar Generation Company Limited, Geregu Generation Company Limited, Olorunsogo Generation Company Limited, and Omotoso Generation Company Limited by the Bureau for Public Enterprise (BPE) without due regard to constitutional principles and economic policy that informed the establishment of those power plants,” the letter reads.
“The committee decried the proposed sale as unconstitutional and a disservice to all known principles of national development and the sharing equity among the three tiers of government.
“Considering the critical role your agency is playing in the sustainable energy sector in the country, you are please requested to stop all further processes regarding this transaction and to submit the following information for the committee’s determination of the way forward.”
