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FG set to conduct forensic audit of DISCOS’ Bank Accounts

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SUNDAY ODE, Abuja

The Federal Government Thursday said it will subject the bank accounts of all the Electricity Distribution Companies (DISCOs) to forensic audit.

Edo State Deputy Governor , Phillip Shuaibu disclosed this to State House correspondents after the National Executive Council ( NEC) meeting presided over by Vice – President, Yemi Osinbajo at the Presidential Villa, Abuja.

This latest move is believed to be part of ongoing efforts to get the  DISCOs deliver on their mandate in providing electric power to Nigerians.

The power sector has come under harsh public criticisms in the past months as the lot of Nigerians continue to get worse in terms of power supply despite the privatisation of the sector over six years ago, leading to suggestions that government should review the process.

According to the deputy governor, the state governments were asked  to provide details of their investment in DISCOS.

He said “NEC also receive an update on the review of the status of ownership structure of electricity power distributing companies. The Kaduna State briefed NEC on the progress so far made and responses so far received from general public.

“He also told NEC that there will be carrying out forensic audit of all bank accounts of DISCOS and also that the state governments to provide details of their investment of DISCOS.

“The committee also sought approval of NEC for additional time to complete the report in two months and also the statement to file report investments in DISCOS.

Explaining further , Ebonyi State Governor , Dave Umahi lamented that the performance of the DISCOS was nothing to write home about .

According to him, “nobody is happy with the DISCOS performance and we have a committee chaired by the governor of Kaduna state and they have done very beautiful job.

“They have placed advertisements in about five newspapers and have asked the general public to give them information on performance of these DISCOS and also investments made by private individuals and private sectors.

“And also the governors are requested before the end of March to also submit all their investments from 2013 to date, so that we will get it all together and were directed by the electricity authority to stamp our claims.

“I think the federal government is trying to take the bull by the horn by trying to find out what investments these DISCOS made towards this privatization. The first suspicion is that they have made no substantial investment and we will take it when we get all the solutions.

The governor also explained why the Excess Crude Account( ECA) dropped from $325 to $71 million.

He also dismissed insinuations that governors were protesting the sudden drop in the ECA.

He explained that $250 million was an agreed investment by governors and federal government on NSIA – National Sovereign Investment Authority .

He stated “on the question of ECA $325 million depleted to $71 million and what happens to the $254 million, I will combine with the question that governors were protesting the depletion and that they were not consulted.

“First, it is not true. $250 million was an agreed investment by governors and federal government on NSIA – National Sovereign Investment Authority and they are doing very well.

“They are handling our infrastructure so nicely that it was further agreed that we should reinvest into it. When these investments are made the federal, state and local governments all get their investment certificate. So we are together in this.

“you also asked where is the other $4 million,  it was used in paying consultancy and services that would have caused the fund about $500 million, it was renegotiated to $4 million because, some people went to court over certain transactions in NNPC and so federal government had to engage consultant to handle that.

“We would have paid the consultant five percent of the cost that they were seeking and it would have translated into $500 million. So if you add $250 million plus $4 million you will get $254 million and if you add $71 million you get $325 million, we are back to where we were. So no money is missing,” Umahi added.

On the budget support to states , he said “ the Minister informed NEC that during the months of January and February, 2020, deductions had been made from statutory allocations of the affected states.

On how much has been deducted of the budget support and what is left, he said “On budget support, I’m not sure Lagos State took any budget support facility but each state is renegotiating and every month we are now paying N152 million towards that.

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