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Reps probe loss of N2bn, $3.8m from sale of PHCN

The House of Representatives is to investigate the alleged loss of N2 billion and $3.8 million through banks’ non-payment of interests on the proceeds of the sale of Power Holding Company of Nigeria, PHCN, successor companies.

The decision followed the unanimous adoption of a motion by Chukwuka Onyema (Anambra-PDP) at plenary, yesterday, presided over by the Speaker, Mr. Yakubu Dogara.

The House resolved to set up an ad hoc committee to carry out the probe and to report back within six weeks for further legislative action.

Mr. Onyema had said the Electric Power Sector Reform Act of 2005 unbundled PHCN into 18 successor companies.

He said the companies were six generation companies and 12 distribution companies covering the 36 states of the federation as well as the National Power Transmission Company.

Mr. Onyema said following the divestiture of Federal Government from PHCN through privatisation, the company was divided into separate companies known as the Local Electricity Distribution Companies, adding that the successor companies made payment to the Federal Government through several banks.

His words: “The accrued interests due the Federal Government to the tune of N2 billion and $3.8 million were alleged to have been diverted by those banks in collaboration with officials of the Central Bank of Nigeria, CNB.”


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