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REA Boss debunks alleged N42bn Contract Scam

Friday, 15 March 2019

The Acting Managing Director of Rural Electrification Agency (REA), Mohammed Wasaram, yesterday, debunked allegation that the agency’s N42 billion electrification contracts in nine federal universities, were fraudulently awarded.

Wasaram told the House of Representatives’ Joint Committee investigating the allegation that the contracts were awarded after approvals by both the Federal Executive Council (FEC) and the Bureau for Public Procurement (BPE).

According to his submission, of the total N42 billion contracts sum, about N15 billion had been paid to the two companies handling the electricity projects – MEKTA West African Limited and Sterling & Wilson Nigerian Limited.

He listed the nine universities as Abubakar Tafawa Balewa University, Bauchi; Bayero University, Kano; Usman Danfodiyo University, Sokoto; Federal University of Agriculture, Makurdi; and University of Lagos.

Others are Federal University, Ikwo; Obafemi Awolowo University, Ile-Ife; Nnamdi Azikiwe University, Awka; and Federal University of Petroleum Resources, Effurun, Delta State.

“The project was approved by the Federal Executive Council under the Rural Electrification Scheme (RES) for nine federal universities in Nigeria, and received no objection from the Bureau of Public Procurement (BPE),” Wasaram told the investigative committee.

Earlier, Chairman of the House Committee on Power, Daniel Asuquo (PDP, Cross River) and his Public Procurement counterpart, Wole Oke (PDP, Osun), had said the joint committee was mandated to investigate the extent to which REA complied with sections 18, 19, 21 and 25 of the Public Procurement Act, in awarding the electrification contracts.

About IWIN

The Independent Energy Watch Initiative (I-WIN), an enterprise of Energy ConServ and the Roundtable for the Growth and Development of Power (RODEP), is an online/web based power sector portal that strives to engage stakeholders and the Nigerian public on topical issues in the power sector.

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