JUMADA-AWWAL 7, 1429 A.H.
TUESDAY, MAY 13 2008
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Ex-Minister defends waiver on power projects
The former finance minister, Mrs Nenadi Usman, yesterday defended the Due Process waiver approved by former President Olusegun Obasanjo on the National Integrated Power Projects (NIPP).
Testifying before the House of Representatives Committee on Power and Steel, Usman said the waiver was granted to shorten the process and deliver the campaign promises of the Obasanjo administration.
“Sometimes public officials can be over-zealous in their attempt to deliver campaign promises and decide to shortcut the process and I believed this is what happened,’’ she said.
Usman said the waiver was only granted on the payment but not the award of the NIPP projects.
She explained that it was the former minister of power, Sen. Liyel Imoke, who requested for the waiver before it was approved by Obasanjo.
“The issue of waiver was between the minister and the president. I didn’t know what informed the request.
“But I am sure the former president must have been given cogent reasons for him to approve it,’’ the former minister said.
She denied that Obasanjo unilaterally awarded the NIPP contracts, as according to her, it was the Federal Executive Council that approved them.
Usman claimed that 3.2 billion dollar was spent on the NIPP projects, adding that 1.2 billion dollars was paid during her tenure from June 22, 2006 to May 29, 2007.
The former minister told the House that the balance were released for the NIPP during the tenure of the former finance minister, Dr Ngozi Okonjo-Iweala.
She challenged the Committee to confirm from the CBN the status of Letters of Credit (LC) opened for the contracts to know the exact amount spent on the projects.
Issuance of Letters of Credit, according to her, does not mean that the money have been spent.
Asked about the legality of financing the NIPP from the excess crude account, Usman said: “I do not know about its constitutionality since I am not a lawyer.’’
She said the account was established based on consultations between Obasanjo, state governors and the Association of Local Government of Nigeria (ALGON
