A new report by the Socio-Economic Rights and Accountability Project
\n(SERAP) has revealed how over N11 trillion meant to provide regular
\nelectricity supply was allegedly squandered under the governments of
\nformer presidents Olusegun Obasanjo, Umaru Musa\u00a0Yar’Adua and Goodluck
\nJonathan.<\/p>\n
According to the report, \u201cThe total estimated financial loss to Nigeria
\nfrom corruption in the electricity sector starting from the return to
\ndemocracy in 1999 to date is over Eleven Trillion Naira (N11 Trillion
\nNaira). This represents public funds, private equity and social investment
\n(or divestments) in the power sector. It is estimated that may reach over
\nTwenty Trillion Naira (N20 Trillion Naira) in the next decade given the
\nrate of Government investment and funding in the power sector amidst
\ndwindling fortune and recurrent revenue shortfalls.\u201d<\/p>\n
The 65 pages report launched today at the Westown Hotels, Lagos is titled:
\nFrom Darkness to Darkness: How Nigerians are Paying the Price for
\nCorruption in the Electricity Sector. The report presented to the media by
\npresented by Yemi Oke, Ass. Professor, Energy\/Electricity Law, Faculty of
\nLaw, University of Lagos discloses that \u201cthe country has lost more
\nmegawatts in the post-privatisation era due to corruption, impunity, among
\nother social challenges reflected in the report.\u201d<\/p>\n
The report shows that, \u201cThe much-publicised power sector reforms in
\nNigeria under the Electric Power Sector Reform Act of 2005 is yet to yield
\ndesired and\/or anticipated fruits largely due to corruption and impunity
\nof perpetrators, regulatory lapses and policy inconsistencies. Ordinary
\nNigerians continue to pay the price for corruption in the electricity
\nsector–staying in darkness, but still made to pay crazy electricity
\nbills.\u201d<\/p>\n
Mr Femi Falana SAN who chaired the report launch said that, \u201cThis report \u201cProfessor Chinedu Nebo handed over the assets of the PHCN to private \u201cOur research revealed that the sum of N1.5 billion with which the \u201cThe National Assembly and members should desist from and avoid \u201cThe Federal Government should back-down from Rural Electrification \u201cWhen the late Bola Ige took up the mantle of the Power and Steel Ministry \u201cThe power sector under Ige was characterized by epileptic and unreliable \u201cWhen Rilwan Lanre Babalola (2008 to 2010) took over the affairs in the \u201cThe ICPC show tell Nigerians about the current status of the probe of the A new report by the Socio-Economic Rights and Accountability Project (SERAP) has revealed how over N11 trillion meant to provide regular electricity supply was allegedly squandered under the governments of…<\/p>\n","protected":false},"author":1,"featured_media":54691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-59118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n
\nis a must read, and I promise to lead in the follow-up litigation efforts
\nto ensure the full implementation of the recommendations of the report.\u201d
\nThe report launch was also attended by Babatunde Irukera, the Director
\nGeneral\/Chief Executive of the Consumer Protection Council (CPC); and Mr
\nIbrahim Magu Chairman Economic and Financial Crimes Commission (EFCC) who
\nwas represented by Mr Osita Nwajah, Director Public Affairs EFCC. Both
\npromised to work to ensure the full implementation of the recommendations
\ncontained in the report.
\nOthers at the events are Barrister Babatunde Ogala; Dayo Olaide, Deputy
\nDirector Macarthur Foundation; Eva Kouka, Program Officer Ford Foundation;
\nMotunrayo Alaka Coordinator Wole Soyinka Centre for Investigative
\nJournalism; representatives of the Independent Corrupt Practices and other
\nRelated Offences Commission (ICPC); the National Human Rights Commission,
\nand the media.
\nThe report accuses Dr. Ransom\u00a0Owan-led\u00a0board of the\u00a0Nigerian Electricity
\nRegulatory Commission (NERC) of allegedly \u201csettling officials with
\nmillions of Naira as severance packages and for embarrassing them with
\nalleged Three Billion Naira (N3,000,000,000.00) Fraud. The authorities
\nmust undertake a thorough, impartial and transparent investigation as to
\nthe reasons why corruption charges were withdrawn, and to recover any
\ncorrupt funds.\u201d
\nThe report also called for the reopening and effective prosecution of
\ncorruption allegations, including the alleged \u201clooting of the benefits of
\nfamilies of the deceased employees of Power Holding Company of Nigeria
\n(PHCN) levelled against a former Permanent Secretary in the Ministry of
\nPower, Godknows Igali\u201d
\nThe report reads: \u201cThe Obasanjo\u2019s administration spent $10 billion on NIPP
\nwith no results in terms of increase in power generation.
\n$13.278,937,409.94 was expended on the power sector\u00a0in eight years<\/span><\/span>\u00a0while
\nunfunded commitments amounted to $12 billion.\u201d
\n\u201cThe Federal Government then budgeted a whopping N16 billion for the
\nvarious reforms under Liyel Imoke (2003 to 2007) which went down the
\ndrains as it failed to generate the needed amount of electricity or meet
\nthe set goals. Imoke was alleged to have personally collected the sum of
\n$7.8 million for the execution of the contract for the construction of the
\nJos-Yola Transmission Line, which was never executed. There were
\ndocumented\/reported allegations of corruption against Imoke that
\nfizzled-out shortly thereafter.\u201d<\/p>\n
\ninvestors on November 1, 2013. Prof. Nebo is alleged to have corruptly
\nfunded the privatized power sector with over N200 Billion despite
\nprivatization. The allegation of N200 Billion funding of the privatized
\npower sector during Prof Nebo\u2019s tenure should be thoroughly and
\ntransparently investigated and anyone suspected to be responsible
\nprosecuted. Any corrupt funds should be fully recovered.\u201d<\/p>\n
\nvehicles were acquired was allegedly sourced from the diverted N27 billion
\ninsurance premium of deceased workers of the defunct Power Holding Company
\nof Nigeria (PHCN).\u201d<\/p>\n
\nmanipulating the award of electricity contracts or cite projects in their
\nconstituencies under the guise of \u201cConstituency Project\u201d. The National
\nAssembly should publish and ensure the full implementation of the
\nrecommendations of all power-related investigations to date.\u201d<\/p>\n
\ninitiatives and allow States to undertake rural electrification through
\ntheir respective Local Governments and Development Areas. Federal
\nGovernment should consider fully divesting its stakes in the power sector
\nand allow for efficient, decentralized sector governance by Federal and
\nState governments, as appropriate, in line with the provisions of the
\nSecond Schedule, paragraph 13 and 14 of the Constitution of the Federal
\nRepublic of Nigeria 1999 (as amended).\u201d
\n\u201cThe 36 state governments should wake up to their rights, duties and
\nobligations under the Constitution of the Federal Republic of Nigeria
\nrelating to the power sector by working to promote and ensure access to
\nregular and uninterrupted electricity supply for all residents within
\ntheir states. The 36 state governments have been abdicating the duties to
\nthe power sector, bearing in mind that Power is an item on the Concurrent
\nLegislative List under the Nigerian Constitution 1999 (as amended).\u201d<\/p>\n
\nin 1999, he probably didn’t understand the magnitude of problems in the
\npower sector and consequently, promised that\u00a0within six months<\/span><\/span>\u00a0of his
\nappointment, \u201cpower failure will be a thing of the past\u201d and that on a
\nregular basis, he will brief the nation on the state of power, steel and
\naluminum. Current minister Babatunde Fashola SAN also claimed that \u2018a
\nserious Government will fix the power problem\u00a0in six months<\/span><\/span>\u2019\u201d<\/p>\n
\nsupply, bogus billing and archaic rate collection. The late Minister
\nfailed and was unable to put an end to these. His failure was attributed
\nto acts of sabotage and corruption by people who were benefitting from the
\nuse of generators. The late Bola Ige was not accused of corruption.\u201d<\/p>\n
\nMinistry of Power, he met 3,700MW on ground and promised to increase it to
\n6,000MW and ensure a 24-hour power supply by the end of 2009. Six months
\nafter assuring Nigerians of making a significant impact in the sector, in
\nSeptember 2009, the 3,700MW capacity he met on ground dropped to 2,710MW
\nwhich shortfall was attributed to inadequate supply of gas to the new
\ngenerators.\u201d
\n\u201cThe duo, Elumelu and Ugbane allegedly colluded in misappropriating over
\nN10 billion public funds from the account of Rural Electrification Agency
\n(REA). The research also established, based on evaluation and analyzing
\ndocuments, a prima-facie case of misappropriation of unspent funds at the
\nend of the year instead of returning same to the treasury. Alleged
\nmisappropriation of N500million to buy houses; diversion of REA\u2019s funds;
\nflouting of government\u2019s rules on award of contracts and award of
\nfictitious and unnecessary contracts without following due process.\u201d
\n\u201cThe government of Nigeria handed over the transmission company to a
\nCanadian company Manitoba, to manage and under a management service
\ncontract of over $200 million. Findings also show that the Transmission
\nCompany of Nigeria could not execute most of its approved 44 projects
\nafter having 50 percent of its N30 billion 2016 budget released to it.
\nFunds were released from Eurobond. $23.6 million allegedly paid to
\nManitoba Hydro International (MHI) of Canada to manage the Transmission
\nCompany of Nigeria (TCN) would appear to be without due process.\u201d
\n\u201cThe privatization of PHCN would appear to have yielded the country total
\ndarkness. Gains of privatization were lost through alleged corruption,
\nmanipulation of rules and disregard to extant laws and lack of
\ntransparency in the exercise. The PBE encouraged the deferment of payment
\nand restructuring of payment terms in contravention of bidding rules to
\nthe disadvantage of other bidders.\u201d
\n\u201cBilling methodology shrouded in secrecy. Billings do not reflect actual
\nelectricity consumptions in most cases. Most if not all, officials of the
\nDISCOs are still very corrupt and demand gratification from customers
\nbefore doing the job they are paid to do. Grand corruption against the
\nFederal Government owner of the 40% stakes in the DISCOS, and by
\nimplications, the Nigerian masses due to non-remittance or
\nunder-remittances of the monies collected by the DISCOs.\u201d
\n\u201cThe Manitoba deal is shrouded in secrecy as essential details of the deal
\nremain unknown to Nigerians till date. The authorities should undertake a
\npublic-oriented audit on the state of affairs of the TCN two years before
\nand after the Manitoba deal. The outcome of the audit should form basis
\nfor further action and charges in court against the suspected perpetrators
\nand corrupt funds fully recovered.\u201d
\n\u201cThe Federal Government should undertake a thorough, impartial and
\ntransparent investigation into the power sector privatization with a view
\nto doing things the right, fair and just way. Ownership of public stakes
\nof 40% in those entities should be revisited and further privatized to
\navoid using government\/public resources to subsidize private entities.\u201d
\n\u201cAttention should be focused also on petty corruption. Petty corruption in
\nthe electricity sector has not received much attention, as the focus has
\nbeen on grand corruption in the sector.\u201d
\n\u201cThe Attorney-General of the Federation and Minister of Justice Abubakar
\nMalami SAN should request the report of the House of Representative
\nCommittee that probed government spending in the power sector from 2000 to
\n2007, and the Elumelu House Probe Committee which had accused 21 persons
\nand 36 companies of subversion of government policy on due process make
\nthe report public and ensure appropriate legal action against anyone
\nsuspected to be involved in corruption as well as full recovery of corrupt
\nfunds.\u201d
\n\u201cUndocumented, monumental fraud and corruption is said to be perpetrated
\nat the Niger Delta Power Holding Company (NDPHC) and investigation by the
\nEFCC and ICPC will ensure that those involved are effectively brought to
\njustice.\u201d
\n\u201cMr Malami should direct the EFCC and ICPC to probe metering and billing
\nfraud and corruption and bribery among Discos. Most consumers are unhappy
\nwill their billing methodology and feel short-changed by the operators. Mr
\nMalami should promptly make progress on all outstanding cases of
\ncorruption in the electricity sector including by ensuring effective
\nprosecution of all power sector cases being handled by the Ministry.\u201d
\n\u201cThe ICPC should make public the status of the investigation and
\nrecommendations for prosecution (if any) on the AEDC Recruitment
\nScandal\/Jumbo Pay Scandal given the facts that the Nigerian Government and
\npublic have 40% stakes in the AEDC. The Manitoba deal is shrouded in
\nsecrecy as essential details of the deal remain unknown to Nigerians till
\ndate. The EFCC\/ICPC should lead a public-oriented audit on the state of
\naffairs of the TCN two years before and after the Manitoba deal.\u201d<\/p>\n
\nrecruitment scandal and corruption-induced jumbo pay to workers of the
\nAbuja Electricity Distribution Company (AEDC\u00a0Plc). Anyone found to be
\nresponsible should be brought to justice and corrupt funds fully
\nrecovered.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"