THE Nigeria Electricity Liability Management Company, NELMCO, Limited, in collaboration with the ministry of power, office of the accountant general of the federation and debt management office, have effectively verified the factual status of an outstanding N4.62 billion worth of liabilities incurred by defunct Power Holding Company of Nigeria, PHCN.
NELMCO has within the limits of its powers determined from a three-week long verification exercise, the true position of sundry stranded liabilities of PHCN with a view to settling them. Fagbemi Adebayo, managing director, NELMCO, said the verification exercise might have revealed damning underhand dealings in the management of PHCN’s legacy liabilities.
The exercise is also expected to save the government billions of naira that could have been frittered away in settlement of sham PHCN liabilities. The report of the verification exercise, which captured PHCN’s liabilities into categories of Power Purchase Agreement, PPA, creditors, legacy debts, engineering creditors, distribution and generation companies liabilities, amongst others, is, however, due for final consideration by the board of NELMCO.
An aggregated copy of presentations made during the exercise was obtained from NELMCO.
From the objectives of the verification exercise which include: determining if there is a legal contract in place between PHCN and its contractors by a review of work orders, local contracts and contract agreements, as well as review of approved advice or certificate of job completion, NELMCO’s eventual settlements of the verified liabilities will be done in clearly defined strategies, starting with lesser sums.
NELMCO was incorporated by the government in line with its Electric Power Sector Reform Act, EPSR, 2005, to manage PHCN’s stranded liabilities vehicle for Nigeria’s smooth transition into a liberalised and productive power sector. The agency had, however, managed its mandate albeit controversially in the past.
— Aug 10, 2015 @ 01:00 GMT