Off To Court

Strident allegations of gratification rocked the committee as contractors accused its members of demanding and actually receiving monetary inducements in the course of its probe of the power projects. A particular allegation went that some members of the committee collected a N100 million bribe from some of the contractors so they (the legislators) would not indict them. Apparently worried by the consistency of the allegations, Speaker of the House, Dimeji Bankole mandated its Ethics and Privilege committee, chaired by Mrs. Florence Akinwale, to probe them. The Ethics committee, however, said there was no memoranda or petitions to support the allegations and could make no headway in its assignment until it was dissolved, together with all other committees, in July.

The report and recommendations of the Power committee indict the contractors and consultants. Consequently, the indicted have formed an association called Forum of Consultants and Contractors on the National Integrated Power Project (The Forum) and mandated five member companies to institute a suit to stall the anticipated deliberation of the report and recommendations by the House of Representatives.

In the suit filed on Friday 3 October 2008 at the Federal High Court Abuja Division, the companies - Pivot Engineering Company, Otis Engineering, Rockson Engineering Limited, Renacs Engineering Nigeria Limited and Hoquado Limited - pleaded with the court to make declarations that they believe would protect their interest as regards the recommendations made against them by the Power Committee. Renacs Engineering Limited, one of the plaintiffs in the suit, was awarded the contract of constructing 15MVA, 33/11 KV substation at Felele, 7.5MVA, 33/ 11 KV at Okene, 7.5MVA, 33/ 11 KV at Kabba and 7.5MVA, 33/ 11 KV at Anyingba, all in Kogi State, at the sum of N2.348 billion, out of which, the legislators disclosed, the sum of N662.630 million had been released to the company.

The company was also awarded the construction of 7.5MVA, 33/ 11 KV at Shendam, Plateau State at the sum of N1.707 billion and the construction of two units of 7.5MVA, 33/ 11 KV at Masaka, Nasarawa State; 7.5MVA, 33/ 11 KV at Nyanya, Abuja and 7.5MVA, 33/ 11 KV at Lafia, in Nasarawa State. These were awarded at the total sum of N2.880 billion out of which the sum of N710.838 million had since been released to the company.

The committee says in its report that Renacs Engineering has so far constructed only a perimeter fence on a site and gate houses in others, jobs worth just about N3 million. Marubeni (WA) and Marubeni International receive knocks for what the committee saw as poor performance in respect of LOT 1 (Calabar), LOT 4 (Sapele) and LOT 6 (Eyaen-Ihovbor) power projects, and alleged complicity in the violation of financial procedures by obtaining and receiving payments in respect of construction activities not yet performed 100 per cent. The committee recommends that the Marubeni be further investigated by the EFCC and ICPC with a view to recovering some sums.

The committee also lampoons Lahmeyer International for alleged generalised project-management failure in respect of the NIPP projects, complicity in tender manipulation, negligence or complicity in over-scoping as well as overpricing, abuse of due process in certification of invoices for payments for works members believed were not yet done by contractors. The committee recommends that the company be further investigated by the EFCC and ICPC with a view to recovering some sums. As noted by the committee, the company has already been blacklisted by the World Bank and recommends it should also be blacklisted by the Nigerian government.

It says ABB Powerlines failed in respect of the 2nd Benin–Onitsha 330kV transmission line project and the Katampe–Kukwaba (National Stadium) 132kV transmission line project. The committee recommends that the company be further investigated by the EFCC and ICPC with a view to recovering some sums and be blacklisted.

But the companies which have gone to court are praying that the court declare that the House of Representatives and its Speaker, Dimeji Bankole, lack the legislative competence to investigate former President Obasanjo’s disbursement or administration of monies not appropriated by the National Assembly for the National Integrated Power Project, having regards to the provisions of Section 88 of the 1999 Constitution of the Federal Republic of Nigeria.

The contractors also want the court to declare the investigation of the NIPP projects by the House of Representatives as ultra vires and a violation of the provisions of the Constitution since the money used for the projects were not appropriated by the National Assembly. This call to the court to declare the investigation as ultra vires is also extended to the report of the probe panel. They are asking the court to declare the report unlawful, null and void. The contractors are pleading with the court to grant an order of perpetual injunction restraining the House of Representatives and the Speaker from receiving, deliberating and considering the purported report of investigation of the NIPP project contracts by the House Committee on Power and Steel.

The embattled contractors contend that the money expended by former president, Obasanjo, on NIPP contracts was sourced from the Excess Crude Oil Account, the reserve of unallocated oil revenue of the Federal Government of Nigeria, which, according to them, was not appropriated by the National Assembly.

In the affidavit in support of the Originating Summons, the contractors opine that NIPPs were conceived by Obasanjo as a special intervention project to address the near total collapse of the entire power infrastructure in Nigeria which was caused by years of neglect. The project was designed as a fast track project to increase the nation’s power generation capacity, which was fluctuating between 1000 and 3000 megawatts, to 10,000 megawatts. The plaintiffs accuse the probe panel of conducting the public hearing in an environment of extreme hostility. They allege that the members displayed lack of expertise and capacity to appreciate the complexities of power plants, transmission lines/sub-station and distribution projects.

They also claim that only a few of the contractors were called at the public hearing and were bombarded with questions for about 10 minutes each without the opportunity of presenting their cases. They also allege that members of the committee resorted to making embarrassing and inflammatory statements against them. They contend that given the conduct of the members, particularly Elumelu, the committee chairman, there is a likelihood that the report will be prejudicial to their interests. The court is expected to start hearing the suit at the Federal High Court Judges Conference going on in Benin, the Edo State capital.