The House of Representatives on Wednesday directed its Committee on Privatization and Commercialization to commence probe on the Director General of the Bureau of Public Enterprises (BPE), over his plans to sell the Afam Power Plc as scrap, asking the National Council on Privatization (NCP) to immediately suspend the processes.
The House also mandated the Committee on Privatization and Commercialization to investigate the Director General of BPE to ascertain the status of the transaction with a view to investigating same and report back to it within four weeks for further legislative action.
The House wants the committee to ascertain the interests of the DG in the planned sale and the status of the transaction during the investigation
This followed a motion brought by Ayodele Oladimeji seeking to investigate the planned sale of the Afam Power by BPE as a dilapidated asset.
The lawmaker noted that BPE has resumed the privatization as dilapidated asset or a scrap on a fast-track transaction of Afam Power Generation Company earlier suspended, as one of the means to finance the 2018 budget.
He noted also that the Sapele Power and the Ughelli Power were privatized by the BPE in 2013 in the same manner as the planned privatization of Afam Power Plant and that both are now in dire financial constraints along with other generating companies, resulting in the Central Bank of Nigeria (CBN) intervention with N701 billion payment assurance guarantee due to expire in December 2018.
Oladimeji told the House that generating companies were still faced with problems of lack of gas and weak infrastructure, which cannot take all the generated energy and also serious liquidity crisis.
In adopting his motion, the House presided over by Speaker Yakubu Dogara, urged the NCP to immediately suspend the process of the privatization to allow for completion of the repairs of phases 4 and 5 machines as well as the construction and rehabilitation of Afam Power Plant road being undertaken by the Federal Road Maintenance Agency (FERMA) to enhance its value.