Reps to investigate TCN over $1.5b loans, $500m contracts

Following a motion bothering on violations of the constitution, the House of Representatives on Wednesday resolved to set up an ad-hoc committee to probe the activities of the Transmission Company of Nigeria for the past 10 years.

The probe targets to look into the foreign loans of $1.5 billion and contract processes of $500 million awarded by the company.

The lawmakers resolved to probe TCN following a motion sponsored by Simon Y. Arabo and entitled, “Need to Investigate the Violations of the Constitution, the Fiscal Responsibility and Public Procurement Acts by the Transmission Company of Nigeria (TCN) Over Foreign Loans of $1.5b and $500m for its Operations and Contract Processes.”

Arabo had while moving the motion reminded the House that due process was not complied with in the procurement of the facilities. He further said that the loans were utilized without the appropriation of the National Assembly. This he said was contrary to Sections 80-83 of the 1999 Constitution.

“The House notes that 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.

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“Aware 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; lso 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.

“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,” he said.

Though the identity of the committee members were not immediately known, the House asked it to within 8 weeks report back at its plenary for advance legislative action.

 

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