Senators yesterday shielded former Minister of Finance, Zainab Ahmed, from a probe over a monthly payment of $10 million Make Up Gas (MUG) reprocessing deal.
Concerns about the controversial payment was raised at plenary by Sen. Aniekan, Bassey (Akwa-Ibom Northeast) on the need to investigate the controversial Make up Gas (Mug) Reprocessing Deal involving the Federal Ministry of Finance, Niger Delta Power Holding Company (NDPHC), Calabar Generation Company Limited, and ACUGAS Ltd.
In a Motion he sponsored, Bassey had argued that the federal, states and local governments owned NDPHC had sometime in 2017, entered into a Gas Supply Agreement (GSA) with Acugas Limited for the supply of gas to Calabar Generation Company Ltd (Calabar Genco), a subsidiary of the NDPHC.
Recalls also that under the said GSA, the Federal Government Nigeria is obliged to pay over $10 million monthly to Acugas Limited and this monthly obligation was protected and secured with a “take or pay” clause, implying that the monthly payment of over $10million must be discharged unfailingly by the Federal Government whether the Calabar Genco takes delivery of gas or not.
Concerned that if the Senate does not investigate the circumstances under which the GSA and MUG were executed by the Federal Government with Acugas Limited, these transactions would constitute an endless drain on scarce public funds which should have been applied towards the execution of other pressing Government projects.
While Bassey urged the Senate to mandate the Committee on Power when constituted to investigate the circumstances under which the Gas Supply Agreement (GSA) and Make-up Gas Reprocessing(MUG) arrangement was executed, the parties involved, payments so far made to entities to date, the status of implementation of the GSA, and for this purpose invite all stakeholders to the transaction including the Immediate-past Minister of Finance, Budget and Economic Planning, the Niger Delta Power Holding Company (NDPHC), Senators, Mohammed Tahir Monguno and Sani Musa rose in defense of Zainab, stating that her action was not in her capacity but that she acted in the deal because she was a minister.
While Bassey urged the Federal Government particularly the Office of the Attorney General of the Federation to ensure due diligence in the preparation and execution of transaction agreements with companies and other investors to avoid the ugly scenario the government is facing under the Gas Supply Agreement Acugas Limited and several other entities, Sen Monguno moved a motion that Zainab’s name should be removed from the investigation that will take place.
