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    Senate Probes Gas Supply Contract Awarded To Private Firm

    adminBy adminJuly 6, 2023 Featured No Comments2 Mins Read

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    Israel Adeleke

    The Senate on Thursday,  launched an investigation into a gas supply contract agreement awarded to a private firm, Acugas Limited, during the tenure of former President Muhammadu Buhari.

    The motion for the investigation was put forward by Aniekan Bassey (PDP, Akwa Ibom) during a plenary session chaired by Deputy Senate President, Barau Jibrin.

    Bassey’s motion stated that in 2017, the Niger Delta Power Holding Company (NDPHC) entered into an agreement with Acugas Limited for the supply of gas to the Calabar Generation Company Limited (Calabar Genco).

    According to the agreement, the federal government would provide over $10 million per month to Acugas Limited for the gas supply to Calabar Genco.

    The senator highlighted concerns over the lack of transparency in the agreement and payment methods for the project, emphasizing the substantial amount of money involved.

    He urged the Senate to task its Committee on Power, once constituted, with investigating the gas supply, examining payments made thus far, determining the status of the gas supply agreement, and questioning all relevant authorities.

    Bassey also called on the Senate to request the Office of the Attorney General of the Federation to ensure proper diligence in preparing and executing transaction agreements with the companies and stakeholders involved in the gas supply contract.

    The Deputy Senate President, while presiding over the session, granted the prayers of the motion, empowering the Senate Committee on Power, when established, to investigate the gas supply agreement and ensure due diligence in its execution.

    However, the Senate unanimously rejected the proposal to invite the former finance minister, Zainab Ahmed, citing that she had acted within her official capacity.

    Instead, the chamber agreed that the incoming finance minister under the administration of Bola Tinubu should be summoned, as the government is a continuum.

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