Reps probe Transmission Company of Nigeria over $2bn loan
The House of Representatives on Wednesday resolved to constitute an ad hoc committee to investigate the activities of the Transmission Company of Nigeria (TCN) for the past 10 years in respect of foreign loans and contract awards
The committee is to report back within eight (8) weeks for further legislative action after it is constituted.
The resolution of the House is sequel to the passage of a motion by a member, Hon. Simon Arabo titled: “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.”
While arguing the motion, the lawmaker noted 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.
“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 TCN has taken loans amounting to $1.5B 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.
“Also 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.”
Arabo also revealed “that TCN is currently negotiating another loan of $500M with Islamic Development Bank and has been violating the provisions of the Public Procurement Act in contract procedures as its contract processes are opaque.”
When the Speaker, Hon. Yakubu Dogara called for a voice vote, it was passed by a majority of members.