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Reps to probe NBET over alleged N90bn loss

The House of Representatives, yesterday, mandated its committees on power and public procurement to investigate alleged violation of the Public Procurement Act (PPA) by the management of the Nigerian Bulk Electricity Trading Plc (NBET) which resulted in the loss of over N90 billion to the Federal Government.

The committees were also asked to look into allegations of gross statutory breaches and total disregard to due process in the implementation of the Power Purchase Agreements (PPAs) initiated by the company.

Hon. Mohammed Soba (PDP, Kaduna), who brought a motion of urgent public importance on the alleged breaches, said he was concerned that if the alleged infractions were not addressed, an ugly precedent of manipulation of the procurement process would have been set which would lead to further financial losses to the Federal Government.

“As a government company, NBET is required to comply fully with Section 15(1) of the Public Procurement Act 2007.

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“But contrary to the act, the Managing Director and management of NBET executed the Power Purchase Agreements with total disregard of due process, which resulted in the loss of over N90bn to the Federal Government,” Soba said.

He further recalled that in clear breach of the act and other extant legislations, the NBET management also engaged Alex, as well as Azinge & Azinge law firms, despite the fact that they lacked basic bidding documents.

The lawmaker alleged that most of the contractors and vendors engaged by NBET were not registered with the Bureau of Public Procurement (BPE), National Database of Federal Contractors or Consultant and Service Providers.

Incorporated in 2010, NBET is a Federal Government company responsible for managing and administering the electricity pool of the Nigerian electricity suppliers.

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