Misuse Of $30 Billion Allegation Scandal Rocks Niger Delta Power Holding Company, As House of Reps Investigates
Speaker of the House of Representatives, Hon. Yakubu Dogara, has said that the House will not relent until all allegations of misuse of N10.08 trillion (about $30 billion) by the Niger Delta Power Holding Company (NDPHC) is unravelled.
The Speaker who stated this at the opening of a public hearing by an Ad hoc committee of the House, on the alleged Constitutional Breaches, Impunity and other Infractions of the NDPHC), and the Need to Ensure Probity and Statutory Oversight Functions, yesterday said it was oh great concern that about half of the funds were reportedly sourced through the Excess Crude Account, which belong to the nation’s three tiers of government.
“From the information made available to the National Assembly, the NDPHC Ltd. has since 2005 invested over thirty Billion US Dollars (US$30B), over half of which was sourced from the Excess Crude Account belonging to the three tiers of Government, while the balance consists of funds from other investors.
“As a Limited Liability Company, the operations, management and accounting procedures of the Niger Delta Power Holding Company Limited is subject to the overriding provisions of the Laws of the Federal Republic of Nigeria in general, and the Companies and Allied Matters Act, (CAMA), in particular. However, the available information is that the Company has failed to comply with very serious and important provisions of the Law, such that the very essence of the company, and by extension the NIPP, is seriously threatened.
“Furthermore, the NDPHC does not submit its annual budget and project plans for appropriation by the National Assembly, while, as alleged, it also generates Internally Generated Revenues (IGR) in trillions of Naira, which cannot be determined because it is neither divulged nor paid into the coffers of the Government, but rather expended by the company without Legislative approval or input from the other tiers of Government.
“Most importantly, information available from the Corporate Affairs Commission (CAC) conveys very disturbing signals that the trillions of Naira purportedly invested into the NIPP by the Federal, the 36 States and the 774 Local Governments have not been securitized as only two billion Naira is said to be registered as shares in the CAC for the three tiers of Government”.
While taking the committee to do a thorough job, the Speaker stressed that “the House is committed to finding a lasting solution to the challenge in our power sector, which has adversely affected all efforts to transform our economy. In particular, we are concerned about making the NDPHC to work to fulfil its intended objectives as an important agency in our electricity industry”.