$174m ADB loan: Senate, Reps summon Fashola over sack of TCN management

$174m ADB loan: Senate, Reps summon Fashola over sack of TCN management

The Senate and House of Representatives Joint Committee on Power yesterday summoned the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to explain the sudden sack of the management of the Transmission Company of Nigeria (TCN).
The minister was asked to appear before the joint committee on Monday February 6, to provide explanation for the removal of the management of TCN.
The National Assembly expressed worry about the brewing crisis in the TCN over the unilateral change in the leadership of the company.
The Nation gathered that the change in the leadership of the TCN was in fulfillment of the conditions to obtain the $174 million loan granted the Federal Government a year ago by the African Development Bank (ADB).
The loan was specifically granted to tackle the country’s energy crisis. The removal of the management team of the TCN was said to be a major condition for the loan.
In the absence of the management of TCN, ADB “experts” will be deployed to run the TCN and manage the national grid for six months in the first instance.
It was learnt that President Muhammadu Buhari’s approval of the condition paved the way for the sudden removal of TCN’s Managing Director, Abubakar Atiku Tambuwal.
Alhaji Usman Gur Muhammed, a former member of staff of the TCN, has been penciled to replace Tambuwal..
A statement by the joint power committee of the Senate and the House of Representatives yesterday, asked the Power, Works and Housing minister to appear to throw light on the development.
The joint committee after its meeting also directed that “the status quo ante in respect of the management of TCN be maintained”.
The statement endorsed by Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe and the Chairman of the House Committee on Power, Daniel Asuquo, also ordered that: “All TCN staff and relevant stakeholders should maintain the peace in the overall interest of the nation.”
The Senate had on Wednesday wondered why a critical national asset like the TCN would be handed over to the ADB when it has not been privatised.
The statement entitled “The TCN Leadership Crisis and its Effect on the Power Sector” reads:
“The Joint Committee on Power of the National Assembly acting on its powers of oversight received disturbing correspondences and information regarding the sudden change in the leadership of TCN, and its attendant crisis.
“Considering the urgency of the matter, especially due to the present economic recession, the Joint Committee resolved to invite the Hon. Minister of Power, Works and Housing to explain the decision of the ministry to “import” from the ADB (one of the lenders to TCN) yet another duplication of the Manitoba experience which had left a negative impression on the fortunes of TCN and indeed the Power Sector.
“The Joint Committee invited the Hon. Minister for Power, Work & Housing to appear before the Committee along with relevant officials on the 3rd of February which he could not appear.
“Consequently, the Joint Committee met and resolved as follows:
“(a) That the status quo ante in respect of the management of TCN be maintained;
“(b) That the Minister should endeavor to appear before the Committee on Monday 6th February, 2017 by 10 am. and
“(c) That all TCN staff and relevant stakeholders should maintain the peace in the overall interest of the nation”
The lawmakers were said to be “very concerned about some issues which may arise from the loan deal if implemented as agreed.”
A member of the committee noted that they were particularly worried about: “The propriety of allowing the ADB to run the TCN even when it is yet to be privatised;the legality of removing the TCN management, which is just midway into its tenure; and the arrangement under which the critical national asset will be given to the ADB.”