House of Reps investigates NDPHC over $2.5bn power projects

The House of Representatives, on Thursday resolved to investigate the Niger Delta Power Holding Company (NDPHC ) over allegations of infractions in the sale of assets under the National Integrated Power Project (NIPP).
This followed a motion by Rep. Mark Gbillah (APC-Benue), which was unanimously adopted by members through a voice vote.
Moving the motion, Gbillah explained that the investigation had become necessary in order to ascertain the veracity of the infractions committed by NDPHC.
He said that the investigation will involve all relevant stakeholders who will assist the committee to identify any constitutional breaches by the power company.
Gbillah explained that the government incorporated NDPHC as a limited liability company to manage NIPP assets and projects put at $2.5 billion.
He said that the NIPP was conceptualised in 2004 to enhance Nigeria’s electricity supply before the full implementation of the private sector driven Electric Power Sector Reform Act.
“The NIPP encompassed projects from every aspect of the electricity value chain, including generation, transmission and distribution.
“Thus, it required an initial investment in the construction of 10 power plants in different parts of the country, amongst several other projects,” the lawmaker stated.
He expressed concern that the company in which the Federal Government holds majority shares and managed over 12 billion dollars, had not submitted its budget and project plans to the National Assembly for appropriation.
The NDPHC, he said,  generated an operating surplus which cannot be determined because it was neither divulged nor paid into the coffers of the Federal Government but expended by the company without legislative approval.
“NDPHC has commenced the sale of NIPP assets, including power plants and is also awarding numerous inflated contracts without due process and has continued to pay outrageous amounts as wayleave payments to communities.
“It is further reported to have received funding of about $9 billion from the Central Bank of Nigeria (CBN) for priority projects but has allegedly diverted these funds to other areas,” he said.
Gbillah accused a local contractor, Rockson Engineering of refusing to hand over four power plants it was awarded in controversial circumstances and holding the Federal Government to ransom over the completion of the plants.
The lawmaker further expressed worry that the NDPHC believed that it was only accountable to the Presidency and had refused to subject itself to the oversight and appropriation roles of the National Assembly.
The House in its resolution mandated the Committee on Power to conduct the investigation and report back within six weeks for further legislative action.