Sale of PHCN: Reps Moves to Probe Multi-billion Fraud in Power Assets Sale

Whatapp News

Abuja ( Sundiata Post) – House of Representatives on Wednesday resolved to probe the alleged loss of over N2billion and $3.8 million as a result of banks refusal to pay interest from proceeds of the sale of Power Holding Company of Nigeria (PHCN) by successor companies.


This is also as the Green Chamber also agreed to set up an ad hoc committee to investigate the matter and report within 6 weeks for further legislative action.


The decision followed the adoption of a motion sponsored by Mr. Chukwuka Onyema (PDP, Anambra) during plenary.


Onyema noted that the Electric Power Sector Reform Act of 2005, unbundled the PHCN into a series of 18 successor companies. These companies included 6 Generating Companies and 12 Distribution Companies, covering all the states of the country and a national Power Transmission Company.

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“Following the divestiture of Federal Government from PHCN through privatization, the company was divided into separate companies known as the Local Electricity Distribution Companies.


“The successor companies made payment to the Federal Government through Standard Chartered Bank, Fidelity Bank, Stanbic IBTC, Access Bank, FCMB, Skye Bank, Sterling Bank, Zenith Bank and Unity Bank.”


He also drew the attention of the House to the accrued interest owed to the Federal Government to the tune of 2 billion naira and 3.8 million US Dollars, which were allegedly diverted by the Banks and officials from the Central Bank of Nigeria (CBN).

Whatapp News