SENATE on Thursday asked its joint committee on Power and Privatisation to investigate the sale of 10 National Integrated Power Projects (NIPP) by the Bureau for Public Enterprises (BPE).
This followed a motion by Senator Mohammed Hassan (Yobbe South) and five others on alleged “Unwholesome practices by Manitoba Hydro International Nigeria Limited under the direction and control of the BPE.”
Senator Hassan in his lead debate criticized the activities of Hydro International ((Manitoba), a Canadian company contracted to manage the Transmission Company of Nigeria (TCN).
The lawmaker said that although the firm was incorporated under the laws of the Federal Republic of Nigeria, it has insisted to be paid in dollars instead of Naira.
He said, “It is a criminal offense stipulated in Section20(5) of the Central Bank of Nigeria (CBN) Act, 2007 for any person or body corporate to refuse the acceptance of Naira as legal currency tender.
“We are worried that the TCN is imposed with this burden, under the management Services Contract, of paying all taxes for the management contractors, while Manitoba does not pay taxes on monies paid under the contract.
“Section 9(2) of the Companies Income Tax Act (CITA) Cap 21, 2004 provides that tax shall be assessed and payable upon the profit of any company accruing in Nigeria.
“The Management Service Contract prepared by BPE for the management of TCN is fraught with apparent illegalities and total violation of the laws of Nigeria.”
Chairman, Senate Committee on Appropriation, Senator Mohammed Danjuma Goje, in his contribution lamented that the entire privatisation exercise has turned out to be a failure.
Goje noted that the idea behind the exercise was to empower the private sector to make power more stable in the country.
According to him, there seems to be no difference between the pre-privatisation and post-privatisation era.
He said, “Unfortunately, those who got the Discos and the Gencos are all crying. The consumers are also crying. So every thing seems to be wrong with the companies.
“Even if government is not going to revoke contracts, there is the need to look at the entire process. Why were the Gencos sold? Were they sold on merit or man-know-man?”