Senate Summons General Electric, DMO Over N100BN Electricity Project Spending
In Nigeria, trillions of naira have been spent on electricity projects but all that has failed to keep the lights on.
The latest of such spending was by American Engineering Conglomerate, General Electric which expended $27.9 million, about 101 billion naira.
Now, Nigeria’s lawmakers are asking them, alongside the Debt Management Office, DMO to come before and explain how they spent the money.
This was resolved after a joint Senate Committee on Public Accounts and Power, Steel and Metallurgy, on Wednesday criticised the Federal Ministry of Power, Works and Housing over the terms of agreement with General Electric for the construction of the Afam 3 Fast Power Project.
The committee condemned the release of $27.9 million to General Electric at zero interest rate, out of the $350 million domiciled with the Nigeria Sovereign Investment Authority, which was from the money borrowed from Europe by the government this year.
The facts were revealed at an investigative hearing by the panel in Abuja on Wednesday.
The $350 million belongs to the Nigeria Bulk Electricity Trading Company but is domiciled with the NSIA.
The money, which was released by the NSIA on the request of the Ministry of Finance, was meant to acquire equipment for the project.
Members of the panel, however, criticised the project as leading to a loss for Nigeria, stressing that the contractor, who was supposed to raise 85% of the project cost, demanded for the money when the firm had not spent any amount on it.
The panel, therefore, asked the Debt Management Office and General Electric to explain the circumstances surrounding the withdrawal and expenditure of the funds.
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