By Levinus Nwabughiogu
ABUJA—House of Representatives, yesterday, resolved to set up an adhoc committee to investigate the activities of the Transmission Company of Nigeria, TCN, for the past 10 years.
Essentially, the investigation bothers on foreign loans of $1.5 billion and contract processes of $500 million awarded by the company.
The decision was sequel to a motion, entitled, “Need to Investigate the Violations of the Constitution, the Fiscal Responsibility and Public Procurement Acts by Transmission Company of Nigeria, TCN, Over Foreign Loans of $1.5b and $500m for its Operations and Contract Processes,” sponsored Simon Arabo.
Moving the motion, Arabo reminded the House that due process was not followed in the procurement of the facilities, adding that the loans were utilised without the appropriation of the National Assembly, contrary to Sections 80-83 of the Constitution of the Federal Republic of Nigeria, 1999.
He said: “The House notes that the privatisation 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.
“It 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.
“The House is 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.