No NIPP project passed through Due Process Office €œ DG

Written by Administrator

The House of Representatives panel probing the $16billion spent on power sector by the Olusegun Obasanjo government was on Tuesday told by the Director General of the Due Process Office, Engineer Emeka Eze, that all the projects executed under the National Integrated Power Project (NIPP) in 2004 were not certified by the office.

His position contradicted the claims by the Managing Director of NIPP, James Olotu and former Minister of Power and now Governor of Cross River State, Senator Liyel Imoke, that all NIPP projects passed through the Due Process before approval by the Federal Executive Council (FEC).

Eze, who testified before the House Committee on Power said: For the $3.54 billion NIPP projects being a presidential intervention, they didnt come to us for payment.
Due Process Office did not certify any project for payment. It was a presidential project, and so they did not pass through us.

There are laws in place and people who have been found wanting should be punished if they break it.
The NIPP initiative was started before the Public Procurement Act was passed. Since the funds were not from the Presidency, but the Excess Crude Account, they did not come to us for payment. Due Process started July 2002 but became effective 2003.

On the issue of companies not registered but were awarded huge sums of contract by the ministry, Eze told the panel that Due Process Office took it for granted that by the time they come to us for clearance, those things are already taken care of. If they are not registered, they are non-existent. If unregistered companies are given jobs, the full weight of the law would be brought to bear.

He told the panel that at a point it was fashionable for people to say that they have not executed projects because their file is in Due Process. The law says you cannot keep contractors file for more than 60 days. If you do, you pay compensation.
On the Afam power project, where 150 km was quoted for a work of 75km costing extra N3.3billion he said, the submission underscores the need for due process. The officials involved must be up and doing. If the scope is not properly defined, they will have to apply the money up to the scope of work.

He noted that all the quantities are provisional, If you realize instead of 5km you have done 2km, the contractor will be paid for 2km. If the work goes beyond the scope; the contractor has a right to ask for more payment. The project you cited has not been completed. The payments we made are on account basis. I expect the officials to ask for refund when preparing the final certificate.

Many a times, we allow contractors to draft agreement and he puts caveats that will be in his favour.
On the difference in figures, Eze said the PHCN officials should clarify the figures.

The difference has to be provided by Maigida, the coordinator who is the pay master in the PHCN. They should explain because we dont pay and so if there is a difference they should tell us what happened. The figures I have so far given you is the ideal thing
In his testimony, Managing Director of Shell Petroleum Development Company (SPDC), Mutiu Sumonu, revealed that the Nigerian National Petroleum Corporation (NNPC) has not remitted its counterpart funding of $577 million for the Afam VI CCGT 642 Mega Watts Integrated Gas to Power Project expected to contribute 20 per cent to the National grid.

He said that since the Federal Government counterpart funding for the project was not forthcoming, the project has suffered delays while alternative financing options are being sought.

The SPDC boss told the House committee that the cumulative spent on the project is approximately $1.05 billion, while $392 million would be needed between this year and 2009 to complete the project.
On the project dimension, Summonu said Shell was saddled with the problem of constructing Afam V1 642 MW CCT and the new High Voltage Switch Yard, with a Long Term service Agreement with Government.