By Emman Ovuakporie

ABUJA—THE House of Representatives may probe an alleged $1.348 billion power sector scam levelled against General Electric, GE, and Rockson Engineering by 10 Civil Society Organisations, CSOs.

House of Representatives

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This development arose from a signed petition by the CSOs on September 26, 2018, and received in the office of the Acting Chairman of Economic and Financial Crimes Commission, EFCC, Ibrahim Magu, on September 27, 2018.

The CSOs alleged actions of the two power sector players were inimical to the economic survival of Nigeria.

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The CSOs include Empowerment for Unemployed Youth Initiative, Guardians of Democracy and Development, Civil Society Group for Accountability and Probity, Transparency Advocacy Development Initiative, Citizens Alert for Development, Initiative for Leadership and Economic Development, among others.

They alleged in the petition that GE and Rockson have “defrauded Nigeria of $1.348 billion over and above the standard international price of single cycle GE frame nine turbines and caused the country the loss of 1349MW of electric power to the national grid for a period over six years.

“Whereas GE supplied the turbines referred to above, that is, 18 nos, GE frame 9 X 126 MW turbines for total sum of 404 million USD, in the case of Egbema, Amoku and Gberain the same GE supplied  nine nos GE frame turbines of 126MW through Rockson Engineering at a whopping sum of $1.55  billion.

“In other words, while GE supplied 18 units at $404 million in 2007, the same GE, as a consortium with Rockson Engineering supplied only nine units of the same turbines at $1.55 billion.”

Reacting to the petition, yesterday, Chairman of the House Committee on Financial Crimes, Kayode Oladele, and chairman of the House Committee on Power, Dan Asuquo, have agreed that in the interest of the nation, there was need to investigate the weighty allegations levelled against the two organisations.

Incidentally, the two companies mentioned had been blacklisted in a House of Representatives 2008 report, following the investigations of the quantum of funds spent on the power sector without corresponding result.

The decision of the National Assembly to investigate the allegations is against fears that should Nigeria do nothing, the government of the United States of America may invoke the Foreign Corrupt Practices Act (which forbids US companies from Acts of corruption anywhere in the world) to prosecute GE if found wanting.

This may cause Nigeria great embarrassment as in the Halliburton case.

Chairman of the House Committee on Financial Crimes, Kayode Oladele while agreeing on the need for an investigation, said he needed to be briefed by the EFCC on the issue, and that until then, his response to the allegation would be limited. He, however, agreed to speak extensively on the issue after the briefing with the commission.

On his part, the Chairman, House Committee on Power, Dan Asuquo, while speaking on the need for an investigation, said: “I remember the President said the National Assembly has sat there and they’re not doing anything. It’s not true, National Assembly has done its work, it has come out with a report. The report is there for anybody to see and use.