We have evidence that OBJ spent $12.9bn on power – Reps

No Comments » March 10th, 2008 posted by // Categories: Energy Development Project




We have evidence that OBJ spent $12.9bn on power – Reps

Bola Badmus, Abuja – 10.03.2008

IN spite of the insistence of some former functionaries of the Obasanjo administration that $10 billion and not $16 billon was spent on the power sector between 1999 and 2007, House of Representatives Committee on Power and Steel said at the weekend that it had already ascertained that at least $12.93 billion was spent.

Speaker, House of Representatives, Honourable Oladimeji Bankole, had disclosed that $16 billion was indeed spent on the power sector by the administration of the former president without any result.

His disclosure contradicted that of President Umaru Yar’Adua who had told a visiting World Bank team that Obasanjo expended $10 billion on that sector which failed to produce the desired results. The House Committee on Power and Steel, which is investigating where the money went into, said it had been able to find out from its own preliminary investigations that $12.93 billion was already released and sunk into the power sector during the administration.

Chairman of the House Committee, Honourable Godwin Elumelu, made the disclosure while speaking with newsmen shortly after he received a delegation from Iranian Transfo led by Parviz Ghaenmaghani, who was seeking to partner with Nigeria on power reform agenda.

Officials of government and supporters of the former president had claimed that the supplementary budget of $4 billion was approved but never released for spending. Elumelu said with the preliminary findings showing that $12.93 billion was released for spending, it was certain that $16 billion was the actual money released and spent on the power sector by former President Obasanjo.

He said it was the resolve of the committee that the difference between $16 billion and $12.93 billion would be located, saying those who collected the money would have to account for it. Giving a breakdown of how the $12.93 billion already traced by the committee through its preliminary findings was distributed, Elemelu said the Ministry of Power received $10 million, Power Holding Company of Nigeria (PHCN) $3.2 billion and internally generated $4.06 billion while the Nigeria Independent Power Plants was given $3.07 billion.

According to the committee chairman, the Rural Electrification Agency (REA) received $500 million, Energy Commission of Nigeria (ECN) took $10 million and the Nigerian National Petroleum Corporation (NNPC) Joint Venture consisting of AGIP, Chevron, Elf and Mobil contributed $1.62 billion.


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