House of Representatives has said it will probe the alleged loss of over N2 billion and $3.8 million as a result of the non-payment of interest by banks from sale proceeds of the Power Holding Company of Nigeria (PHCN) successor firms.
The resolution followed a motion sponsored by Mr. Chukwuka Onyema (PDP, Anambra) at the plenary presided over by its Speaker Yakubu Dogara.
It adopted the motion agreeing to set up a committee to investigate the matter and report back within six weeks.
According to Onyeama, the Electric Power Sector Reform Act of 2005 unbundled PHCN into 18 successor companies, comprising six generation companies, 12 distribution companies and a transmission company.
“Following the divestiture of the Federal Government from PHCN through privatisation, the company was divided into separate companies known as Local Electricity Distribution Companies,” he said.
“The successor companies made payments to the Federal Government through Standard Chartered Bank, Fidelity Bank, Stanbic IBTC, Access Bank, FCMB, Skye Bank, Sterling Bank, Zenith Bank and Unity Bank.”
The lawmaker said that the banks, in collaboration with officials of the Central Bank of Nigeria, allegedly diverted the interest of N2 billion and $3.8 million that should have been paid to the Federal Government.
