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Revealed: Who got what in $16b Obasan­jo pow­er deals

With the con­tro­ver­sy stirred by alle­ga­tions and counter-alle­ga­tions over the alleged $16 bil­lion invest­ment in the Nation­al Inte­grat­ed Pow­er Project (NIPP) still rag­ing, anoth­er report has shown the iden­ti­ties of 27 com­pa­nies that ben­e­fit­ed in the cash, reports Man­ag­ing Edi­tor YUSUF ALLI.

FORMER Pres­i­dent Oluse­gun Obasanjo’s admin­is­tra­tion spent about N1.2 tril­lion on the con­tro­ver­sial Nation­al Inte­grat­ed Pow­er Projects (NIPP), an Eco­nom­ic and Finan­cial Crimes Com­mis­sion (EFCC) report has said.

But only N360.7billion had been paid to the con­trac­tors — as at 2007 when Obasan­jo exit­ed pow­er.

The admin­is­tra­tion also spent N273.65billion on Pow­er Hold­ing Com­pa­ny of Nige­ria from 1999 to 2007.

Accord­ing to the report, which was com­piled using the naira, 27 com­pa­nies got the con­tracts for trans­mis­sion lines.

Com­piled by for­mer EFCC Chair­man Ibrahim Lam­orde when he head­ed the agency in act­ing capac­i­ty, the report was said to have been hand­ed over to a for­mer Chair­man of the EFCC, Mrs. Fari­da Waziri, when she resumed office.

Accord­ing to the report, exclu­sive­ly obtained by The Nation,the fig­ures were arrived at after exten­sive inves­ti­ga­tions by the anti-graft com­mis­sion.

Pres­i­dent Muham­madu Buhari has accused for­mer Pres­i­dent Oluse­gun Obasanjo’s admin­is­tra­tion of blow­ing $16b on pow­er. Obasan­jo replied that he was nev­er indict­ed, adding: “The answer is sim­ple: The pow­er is in the sev­en Nation­al Inte­grat­ed Pow­er Projects and eigh­teen gas tur­bines that Chief Obasanjo’s suc­ces­sor who orig­i­nal­ly made the alle­ga­tion of $16 bil­lion did not clear from the ports for over a year and the civ­il works done on the sites.” The report said: “Fur­ther inves­ti­ga­tions also revealed that a Nation­al Inte­grat­ed Pow­er Project is cur­rent­ly apace in six zones of the coun­try for which about N1, 230,949,066,528.99 was com­mit­ted by the Fed­er­al Gov­ern­ment.

The projects were also at dif­fer­ent lev­els of com­ple­tion but as at the moment of this report, N360, 714, 147, 700.03 has been paid out to con­trac­tors, leav­ing a bal­ance of N870, 234, 918, 828.06 yet to be paid, pend­ing the com­ple­tion of the project.

After an in-depth inves­ti­ga­tion and rig­or­ous check on all doc­u­ments relat­ing to these con­tracts, the pay­ments made so far, and the con­trac­tors han­dling the project, it is impos­si­ble to draw a nexus between the for­mer Pres­i­dent or any indi­vid­ual or com­pa­nies asso­ci­at­ed with him and the pro­ceed accru­ing from the con­tract pay­ments.”

On the defunct Pow­er Hold­ing Com­pa­ny of Nige­ria (PHCN), the report claimed that about N273.65billion was released to the agency between 1999 and 2007 for its day-to-day activ­i­ties.

Also, the PHCN sep­a­rate­ly received N22.297billion and 162,467.57billion; US$445.244.630.07million; Euro 20, 105,436.31million; and £8,987,322million for about 27 con­tracts on elec­tric­i­ty gen­er­a­tion and trans­mis­sion.

The report adds: “On the issue of NEPA (now the Pow­er Hold­ing Com­pa­ny of Nige­ria), inves­ti­ga­tion has revealed that between 1999 and 2007, over N273.65billion has been received by the insti­tu­tion and not N521billion as alleged. This appro­pri­a­tion is for its day-to-day activ­i­ties, includ­ing gen­er­a­tion of elec­tric­i­ty, its trans­mis­sion and dis­tri­b­u­tion to the peo­ple of Nige­ria.

Inves­ti­ga­tions have also revealed that var­i­ous con­tracts in rela­tion to gen­er­a­tion of elec­tric­i­ty trans­mis­sion were award­ed which amount­ed to N22.297.162, 467.57billion; US$445.244.630.07million; Euro 20, 105,436.31million; and £8,987,322 mil­lion. All the doc­u­ments relat­ing to pay­ments have been checked and scru­ti­nised and there was no ref­er­ence what­so­ev­er to the for­mer Pres­i­dent, his rela­tions or any front who ben­e­fit­ed from the con­tracts.”

The report list­ed some of the 27 con­tracts as fol­lows:

  • Piv­ot Engi­neer­ing Ltd was award­ed con­tracts in the sum of $78,625,736.54 for the con­struc­tion of Ower­ri-Ahoa­da-Yenagoa 132 KVA DC lines and sub­sta­tions. It is to be not­ed that out of this, $73,023,521.36 has been paid to the con­trac­tor.
  • ABB {Nig] Ltd [SAE] received a con­tract in the sum of $21,489,644.79million and Nl, 489,271,079.60billion for the con­struc­tion of sec­ond Benin-Onit­sha 330 kva SC lines. So far, the con­trac­tors have been paid the sum of Nl, 675,225,734:40billion
  • Siemens Ltd also ben­e­fit­ed from a con­tract of Euro l5, 032,410.65million (Euros) and N200, 000,000million to pro­vide Onit­sha 150 Mva, 330/132/33 kva, T/F and 330 KV base at Onit­sha and Benin. Out of this con­tract sum, it has received a total pay­ment of El2, 499,567.00million( Euros)and N49, 979,258.00million
  • Ener­gov­od Src was award­ed a project of Alao­gi-Cal­abar 330 kva DC lines in the sum of $42,382,351.30million and N900, 000,000 for which pay­ments to the tune of $23,851,466.58million and N431, 056,721.00million have been made.
  • AREYVA T/D SPR-and ‑MBH pow­er-for off­shore works for con­struc­tion of bays got £8,987,322.00million and N600, 000,000million. The for­eign pay­ments have been ful­ly made while only N161, 704,254.50million on the Naka was paid.
  • Chrome Con­sor­tium was award­ed con­tracts for the pro­vi­sion of Gombe-Yola-Jakn­go 330kva SC lines at $74,872,154.04million. It has been paid $50,000,000.
  • News Engi­neer­ing Ltd got a con­tract val­ued at $3,485,113.50million and N250, 000,000million for the con­struc­tion of Jalin­go 2×30/40 mva; 132/33kv sub-sta­tion. It received $2,670,679.36million and N100, 850,347.04million.
  • Allao­gi-Umuahia 132 kva DC line was award­ed to Piv­ot Engi­neer­ing at $4,067,940.00million; it got $3,978,676.10million and N406, 528,365million.
  • Valenz Hold­ings [Nig] Ltd got the con­tract for Umuahia 2×30/40 mva, 132/33kv sub­sta­tion at $7,083,399.48 mil­lion and N489, 704,091.00million.It was not clear if the com­pa­ny had been paid.
  • Kec/News Engi­neer­ing han­dled Gombe-Dama­tru-Maid­uguri 330kv lines at $30, 172, 772million and N2.5 bil­lion
  • JKN Lim­it­ed did Ado ‑Eki­ti 132/33kva sub-sta­tion and Akure 132kva Liangbe exten­sion at N822 mil­lion. It received N521million.
  • Kano- Dutse 132 kva DC and Dutse-Azare 132 kv SC line were done by LCEP at $50, 294, 388million.
  • ABB did Dutse- Azare 2×30/40MVA, 132/33KV Sub ‑sta­tions cost $12,500,000:00million and €1,771,582:83million. The com­pa­ny received $11,074,967:81million and €354,316:40million /*.
  • The Egbin-Ike­ja West/Benin Main 330kv DC line and sub-sta­tion was han­dled by Ener­go (Nig) Lim­it­ed at $8,437,687 mil­lion and N141, 967,775:92million; it was paid $6,475,037:18 and Nl7, 488,890:06million .
  • NEPA-ACEB Pow­er Inter­con­nec­tion Project (Coun­ter­part Fund­ing) was han­dled by SAE Pow­er Lines and Are­va (SIS) (Coun­ter­part Fund­ing on ADB Loan on senders) at Nl,194,500,000:00;  Nl,043,800,000:00 was paid.
  • News Engi­neer­ing Nig Lim­it­ed got the con­tract for the con­struc­tion of lx30MVA, 132/33W sub­sta­tion at Kef­fi at N441,534,004:50; N251,700,000:00 was paid to the con­trac­tor.
  • Con­ti­nen­tal Engi­neer­ing Nig Lim­it­ed was award­ed Tala­ta Mafara 2×30/40MVA, 132/33kv sub­sta­tion ( N453, 532, 829:20) . The com­pa­ny was paid N420, 323,334:57.
  • Amukpe (Sapele) lx30/40MVA, 132/33kv sub sta­tion was han­dled by News Engi­neer­ing Lim­it­ed at $1,194,482:34 and N219,920,252:71. The com­pa­ny received $1,014,276:14 and N78,303,339:54.
  • ABB Pow­er Katempe got Nation­al Sta­di­um 132kv DC line for N347,000,000:00; it was paid N 173,500,000:00.
  • Twen­ty-six com­pa­nies car­ried out FY2000 sub­sta­tion rein­force­ment projects (N2,679,487,010:00) They received N2.3billion, rep­re­sent­ing 90% of the con­tract sum.
  • ABB Nige­ria Lim­it­ed han­dled reha­bil­i­ta­tion of Delta TV Switch­yard  (€2,879,811:11 and N109,899,233:00); N36,822,340 was paid.
  • Nnewi 2x60MVA 132kv sub- sta­tion was award­ed to Valenz Hold­ings Nige­ria Ltd (€4,421,811:72 and N251, 833,400:00). It received N191, 734,122:52 .
  • CMC was award­ed New 33kv sub­sta­tion at Omo­to­sho ($30,325,386:00); $3,115,453:00 was paid.
  • Steers Int’l  Ltd   was   award­ed   $1,395,353:83   and Nl 52,092,929:50 for the con­struc­tion of New 330kv line at Ornotosho/Benin/ Ike­ja West in which a down pay­ment of $596,137:71 and N34,465,000:00 have been made to the con­trac­tor.
  • SEPCO got the $30,325,366:00 New 330kv sub­sta­tion at Papalan­to. It was paid $8,915,453:00.
  • Kuk­wa­ba 2x60MYA, 132/33kv sub- sta­tion was award­ed to NCEP at $5,252,932:61 and N272,237,433.25; 20% pay­ment was made, which comes up to $1,050,586:52 and N54,447,486:65.
  • CCC Int’l Ltd is a com­pa­ny was award­ed Onit­sha-Nni­we-Ihiala 132kv DC line at $2, 631,003:58 and N 198,049,270:00.

A report of the  Pres­i­den­tial Review Pan­el on the NIPP set up by the Nation­al Eco­nom­ic Coun­cil (NEC) said  as at 2007, “total project allocations/estimates for NIPP” amount­ed to $10.231 bil­lion, includ­ing the $2 bil­lion Fed­er­al Gov­ern­ment coun­ter­part fund­ing for Mam­bil­la Hydro Pow­er project and $1.4 bil­lion for addi­tion­al nine tur­bines.

Accord­ing to the then Gov­er­nor of Benue State, Mr. Gabriel Suswam, who made the pre­sen­ta­tion of the panel’s report, “ out of these com­mit­ments, only $3.08 bil­lion was fund­ed and scru­ti­nised with advance pay­ment guar­an­tees from “first class” Niger­ian banks and Let­ters of Cred­its issued by the Cen­tral Bank of Nige­ria (CBN).  Over $1.5 bil­lion of the sum is still in the cus­tody of the banks.”

But the report said: “The com­mit­tee  agreed that com­plet­ing the project as ini­ti­at­ed is the right way to go.”

The NIPP con­tracts were actu­al­ly exe­cut­ed from the crude oil sale wind­fall, which was kept in the Excess Crude Account (ECA).

But the Rev­enue  Mobil­sa­tion  Allo­ca­tion  and  Fis­cal  Com­mis­sion (RMAFC) declared the deductions/withdrawals from ECA as ille­gal because the cash belonged to the 36 states and the 774 Local Gov­ern­ment Areas.

It also obtained an injunc­tion restrain­ing the Fed­er­al Gov­ern­ment  from with­draw­ing from the account.

Most of the states also filed mat­ters in court to chal­lenge the with­drawals from ECA by the Fed­er­al Gov­ern­ment.

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