Reps probe NBET over alleged N90bn loss — Nigerian Pilot News
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Reps probe NBET over alleged N90bn loss



Again Reps summon Buhari *Decry state of insecurity in the country

…raise queries over illegal contract awards

The House of Representatives has launched a probe on the Managing Director and executive management of the Nigerian Bulk Electricity Trading PLC over alleged financial irregularities and breaches, resulting to the loss of over N90bn federal government money

At Tuesday plenary, the lawmakers mandated the Committees on Public Procurement and Power to jointly investigate the allegations of gross statutory breaches including violation of the public procurement Act 2007 by the management of the Nigerian Bulk Electricity Trading Plc.

Following a resolution by the House after carefully debating a motion sponsored by , Honorable Muhammed Soba(APC, Kaduna) the lawmakers expressed concerns over series of breaches against the provisions of Public procurement Act, 2007, statutory guidelines and regulations by the Managing Director and management of the electricity company and resolved to investigate the firm

In the matter brought under urgent national importance, sponsor of the motion, Hon Soba disclosed that firm’ s MD and his management executed power purchase agreements without following due process leading to the loss of no less than N90bn

Beside the financial infraction, the lawmakers are at a loss over why NBET management will also design a performance and implementation chart for its terms in the agreement against extant provisions of the Public Procurement Act 2007, Guidelines and Regulations from the Bureau of Public Procurements.

Leading debate on the motion, Soba, accused, NBET, for engaging Consultants without recourse to laid down financial rules and those of engagements.

“They acted in breach of the Act and extant Guidelines, Rules, Circulars and other Subsidiary Legislation”

For instance, Soba revealed that two law firms, Messrs AELEX, Azinge & Azinge, were engaged even where they lacked basic bidding documents.

He noted that while the least responsive bidder was not awarded the contract, the necessary authorization from the Attorney General of the Federation was not secured before the two legal firms were signed on

Hon Soba added “Most contractors and vendors engaged by NBET are not registered with the Bureau of Public Procurement, neither are they registered on the National Database of Federal Contractors, Consultants and Service Providers which is a gross violation of the provisions of the Acts”, he said, adding that the Managing Director and Management of NBET are also suspected of awarding contracts arbitrarily, resulting to colossal loses , while undermining the lowest evaluated responsive bidder as provided by Section 16(17) of the Public Procurement Act 2007

He warned that if Parliament does not intervene quickly by probing all alleged infractions and address the situation, a systemic institutional method of cheating in procurement process would have been put in place leading to further monumental losses.

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