Senate Summons Fashola Over $35 Million ‘Fast Power Project’

*Probes NNPC, TCN on $650 million Eurobond

Senate on Wednesday summoned Minister of Power, works and Housing, Mr Babatunde Raji Fashola, over alleged fraud of $35 million ‘fast power project ‘.

The Red chamber accused the Minister of spending $35 million without appropriation from the National Assembly. 

Senate also mandated full probe of $500 million Eurobond with NNPC and another $150 million with Transmission Company of Nigeria (TCN).

Senate position follows a motion titled: “Monumental Fraud in the Power Sector” from Senator Dino Melaye .

According to the motion sponsored by Senator Dino Melaye,  Fashola paid $29 million to General Electric (GE) as cost for turbines as well as another $6 million in consultancy fees to other companies, all of which were done without appropriation by National Assembly.

In his motion, Melaye alleged the Ministry of Power, Works and Housing is plotting desperately to retrieve the $350 million in NSIA which is meant for states owned Nigeria Electricity Bulk Trading Company (NBET), and divert same for its “Fast Power Project.

The fund has been with NSIA since 2014 to help build market confidence especially amongst new investors in the newly privatised electricity market.

To ascertain the exact status of the fund ($350 million), Senate mandates Committee on Public Accounts to investigate and summon the Nigerian Sovereign Investment Authority (NSIA).

Melaye said, “there is now a desperate attempt by the Federal Ministry of Power, Works and Housing to retrieve this fund ( $350 million) and divert same to fund the so called Fast Power Projects which the Ministry has already spent $35 million of public funds not appropriated by the National Assembly;

“Since the introduction of the Fast Power Project by the Federal Ministry of Power, Works and Housing, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric (GE) as cost for turbines and $6million in consultancy fees to other entities respectively, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.

“lot of questions are begging for answers as regards the $29 million paid to General Electric and the $6 million paid to other consultants as to.

“Who were the Consultants and how were they procured? 

“Was there observance of due process in awarding the consultancy of $6 million and in paying General Electric $29 million for turbines? 

“Why is the transaction cloaked in secrecy? 

“What is the true value of Afam Fast Power? 

“Why is the Ministry engaging in constructing new power plant while government has several idle plants that is seeking buyers for? 

“Why is the Ministry that is supposed to be making policies, dabbling into constructing new power plants that we have all agreed is better handled by the private sector? “

Seconding the motion,  Senator Hassan Mohammed said that the motion is a straightfirward motion saying there is no need for further debate on it. 

Senator Gbenga Ashafa however called for caution on the matter of the Senate on this matter because the issue is just a mere allegation which cannot be verified. 

After exhaustive debate on the motion,  Senate refered the matter to joint committees on Power and Public Account and come back with the report after two weeks. 

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