Reps probes NBET over N90bn loss

…Accuses agency’s management of illegal contract awards

…Alleges statutory breaches, violations

Henry Omunu, Abuja

The House of Representatives on Tuesday launched a probe into the over N90 billion loss incurred by the management of the Nigerian Bulk Electricity Trading Plc (NBET) following alleged financial irregularities and breaches, resulting in the loss of huge Federal Government funds.

It therefore resolved that the House Committees on Public Procurement and Power to jointly investigate the allegations of gross statutory breaches, including violations of the Public Procurement Act 2007 by the management of the Nigerian Bulk Electricity Trading Plc.

The resolution was sequel to the adoption of a motion sponsored by, Rep. Muhammed Soba (APC/Kaduna), expressing concerns over series of breaches against the provisions of the Public Procurement Act, statutory guidelines and financial regulations by the managing director and management of the electricity company.

Moving the motion under matters of urgent national importance, Rep. Soba disclosed that the firm’s chief executive and his management team executed power purchase agreements without following due process leading to the loss of no less than N90 billion.

Besides the financial infraction, he further accused the NBET management of designing a performance and implementation chart for its terms in the agreement against extant provisions of the Public Procurement Act, the guidelines and regulations from the Bureau of Public Procurements.

Rep. Soba accused the NBET of engaging consultants without recourse to laid down financial rules, declaring that “they acted in breach of the Act and extant guidelines, rules, circulars and other subsidiary legislations.”

For example, he disclosed that two law firms, Messrs AELEX, Azinge & Azinge, were engaged even where they lacked basic bidding documents, complaining that while the least responsive bidder was not awarded the contract, the necessary authorisation from the attorney general of the federation was not secured before the two legal firms were signed on by the NBET management.

He added that “most contractors and vendors engaged by the 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 Act.

“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.”

The House member warned that if the National Assembly does not intervene quickly by probing all alleged infractions, a systemic institutional method of cheating in procurement process would have been put in place leading to further monumental losses.