The committee, on the second day of its on-the-spot assessment of power projects in the country, yesterday found that a Japanese company, Maruberi, was in 2002 overpaid by N224 million by government in respect of its construction of the 561 mega-watt Calabar power station.

Presidency sources yesterday told Vanguard that government, ahead of its planned prosecution of people that may be indicted by the probe, has directed relevant law enforcement agents to collate as much evidence as they can to use against such people.

Presidency sources familiar with the matter said through its discreet participation in the public hearing and other subsequent investigations, government now had enough evidence to prosecute some of the people indicted.

The President, sources said, was determined to ensure that the war against corruption did not lose its steam and was keen on ensuring that those who connived to frustrate government’s effort at improving power situation in the country were made to face the full wrath of the law.

“Even if the House Committee on Power does not make the report of the committee available to the executive, the Ministry of Justice and other agencies of the executive would go ahead with its plans to prosecute people who have cases to answer,” sources said.

FG overpays firm by N224 million

And yesterday, the House of Representatives Committee on Power discovered that Marubeni, a Japanese company, was in 2002 overpaid N224 million by the Federal Government for the construction of the 561 mega-watt Calabar power station.

The House Committee led by Mr Ndudi Elumelu also discovered in the course of its tour of projects in Cross River State, that the contract for the Calabar 330kva transmission line awarded to MBH Power Company, an Indian electrification company, in 2001 is yet to be completed after seven years

Members of the Committee while cross-examining the consultant to MBH, Mr. Abdul Rafiu Jimoh, discovered that about £8,987,222 was paid to MBH as operating cost, while N956.915 million was paid to the same company in 2002, even when a site for the job was yet to be secured.

The consultant for the 561 megawatts Calabar power station, Mr. Derek Charman, while admitting that the company was overpaid for the job, which is still at the stage of foundation laying for the installation of turbines, said it was not the fault of Marubeni, saying a British Engineer pleaded with the Federal Government to extend the contract agreement to December this year (2008) for another dry season to enable the company meet its obligation to the government.

The committee while inspecting equipment deposited at Calabar Port was told by the Managing Director of Marubeni, Mr. Toru Sato, that the delay in executing the contract was caused in part by the activities of militants.

The submission angered members of the committee who dismissed the statement as a lie.
Sato was contradicted by the Chairman, Onim Ankiong Clan Council, the area where the 561 Megawatt power station is located, Brig-Gen. Bassey Asuquo (rtd), who said “in fact, our relationship with the project’s contractors is very cordial.”

Asuquo who assured the contractors of their continued safety said: “The Clan Council has constituted a Security Committee to ensure a hitch-free operation at the project site.”

Governor Liyel Imoke assured the committee of the state government’s protection of every power project site visited, while advising them “to punish accordingly anybody who was involved in these abandoned contracts appropriately.”

He said the “work that the committee is doing is very good for this country.”

Disparities in PHCN accounts

The Elumelu-led delegation also discovered that there were disparities in the account figures of the PHCN. Senior Finance and Accounts Officer of PHCN branch in Calabar, Mr. Nkpoikanke Ekwere, gave the probe panel the remittance figure for the month of October 2007 as N18.955 million, but Elumelu who did an independent calculation discovered that the actual remittance figure was N21.668,746 million.

There were also discrepancies in the figures given by the branch as what was spent and remitted last year with the one the committee summed up.

While the PHCN in Calabar generated N59 million for December 2007, according to the Accounts Officer, the House Committee discovered, according to a First Bank statement, that N58 million was credited.

The Committee is now in Rivers State, where the Omoku, among other power plants, would be inspected.

C’ttee to summon Obasanjo, Atiku, others

Meanwhile, the Reps Committee probing the Power Sector has indicated its intention to summon former President Olusegun Obasanjo; former Senate President, Chief Ken Nnamani; former Speaker, Alhaji Bello Masari; and former Vice-President, Alhaji Atiku Abubakar, to explain their roles when money was appropriated for the power and steel sector during the last administration. This was made known in Calabar yesterday.

Speaking to newsmen after the committee met with Governor Liyel Imoke at the Executive Council Chambers of the Governor’s Office, Elumelu explained that relevant invitations would be made during the course of the committee’s investigations.

Asked why the committee had not invited persons like the former president, he said: “We have six zones in this nation and we are only in one of the zones. We have to go to all the zones to ascertain the extent of work done, after that, not just the president, there are other people that have not been invited.

Those who chaired relevant positions when money was appropriated like former Speaker, former Senate President, former Vice-President and President. So it is a long race.”

Responding, Governor Imoke commended the committee for the decision to inspect the projects.
His words: “What the committee is doing is very important in this country. We are particularly pleased that the committee has deemed it fit to go round and visit the various projects site.

I believe that beyond affording the committee members the first time opportunity to see what is actually going on to make the assessment, I believe the visit also helps to ginger up those who are responsible for executing these projects.

It creates an awareness and forces everybody to be alert. Here in Cross River State, where a number of these projects are located, it is our hope and belief that with what the committee is doing, it would only facilitate the completion of these projects for the benefit of the good people of Cross River State.

After your exercise, I believe you will be better placed to sanction those who have failed to perform and of course to commend those who have done well. Those who have performed below standard should be queried because the projects have been on for sometime.”