The Senate Committee on Public Accounts has commenced investigation of N14.7bn revenue of privatisation of the defunct Power Holding Company of Nigeria.
The proceeds were allegedly hidden in commercial banks by the Bureau of Public Enterprise.
The committee is acting on an audit query in the ‘Auditor-General for the Federation’s Annual Report on Non-Compliance/Internal Control Weaknesses Issues in Ministries, Departments and Agencies of the Federal Government of Nigeria for the Year Ended 31st December, 2019.’
The Senate and House Committees on Public Accounts began investigation of the queries after Acting Auditor-General of the Federation, Adolphus Aghughu, had presented the report to the Clerk to the National Assembly, Ojo Amos, on September 15, 2021.
Recall that the defunct government-owned National Electric Power Authority (NEPA) was privatised and renamed PHCN, which was later unbundled to become the present generation and distribution companies.
The query stated that the funds were still in the banks as of December 31, 2016, whereas the privatisation of the PHCN had been concluded since 2013.
The query reads “Audit verification and reconciliation revealed that the sum of N14,720,396,432.43, being proceeds from the privatisation exercise of the Power Holding Company of Nigeria was reported in the bureau’s trial balance to be in commercial bank accounts as at31st December 2016.
“Whereas, the privatisation of the PHCN was concluded in 2013, the proceeds are yet to be remitted to the Central Bank of Nigeria Privatisation Proceeds Accounts.
“The issue has been communicated to the bureau via a letter with reference no. OAuGF/RESAD/05/2016/07, dated 19thApril, 2018, and no response has been received.
“Unauthorised funds kept in commercial banks may be diverted for other purposes, thereby leading to loss of revenue available for government programmes.
“The Director–General (of the BPE) is required to recover the sum of N14,720,396,432.43, being the proceeds of the PHCN, and remit the same to CRF and forward evidence of remittance to my office for audit confirmation.”
