Probe of $2bn obtained by TCN underway
The House of Representatives during Wednesday plenary session resolved to initiate investigation into the $2 billion loan obtained by Transmission Company of Nigeria (TCN).
Simon Arabo (PDP-Kaduna) who sponsored the motion, alleged that TCN wholly owned by Federal Government obtained the facility in-breach of relevant provisions of the 1999 Constitution, Fiscal Responsibility Act as well as the Public Procurement Act (PPA).
The privatization of the power sector under section 8 of the Power Sector Reform Act of 2005 gave birth to the Transmission Company of Nigeria (TCN) as one of the successor companies in the sector.
Also notes that under section 9 of the Act, the TCN is wholly owned by the Federal Government through the Ministry of Finance Incorporated (MFI) and the Bureau of Public Procurement (BPP) which hold the shares on its behalf;
Arabo noted that the “TCN has taken loans amounting to $1.5 billion from the World Bank and other International Lenders over a period of time without complying with the provisions of section 44 of the Fiscal Responsibility Act.
“The House is also aware that the loans were utilized without the appropriation of the National Assembly contrary to Sections 80-83 of the Constitution of the Federal Republic of Nigeria, 1999.
“The House is further aware that TCN is currently negotiating another loan of $500 million with Islamic Development Bank and has been violating the provisions of the Public Procurement Act in contract procedures as its contract processes are opaque.
While ruling, Speaker Yakubu Dogara who presided over the plenary session mandated the joint Committees on Power, Public Procurement and Aids, Loans and Debt Management to investigate the activities of the TCN for the past 10 years in respect of foreign loans and contract awards and report back within eight weeks for further legislative action.
Big Read |