Senate Gives Edun A Seven-Day Ultimatum On N100bn Gas Project

By Clement Alphonsus
Wale Edun (Minister of Finance)
Wale Edun (Minister of Finance)

Senate Committee on Gas has offered the Finance Minister, Wale Edun, a-seven-day ultimatum to give details of the award and disbursement of over N100bn to companies engaged in the handling of the Presidential Compressed Natural Gas projects allegedly done in breach of the Public Procurement Act 2017.

The lawmakers said the request was made due to the plans by the PCNG to release another N130bn to an unspecified number of companies, ignoring an earlier warning by the Gas Committee that spending taxpayers’ money on the said gas infrastructure development projects without National Assembly approval would amount to extra-budgetary expenditure and gross violation of the public procurement Act.

In the letter requesting the finance minister to furnish the committee with details of the award and disbursement of over N100bn was a sequel to a fresh petition by a group known as “Good Governance and Transparency Front”, accusing the chairman of the Steering Committee of Presidential CNG Initiative of approving the disbursement of the funds to cronies without following due process and the Public Procurement Act, 2007.

The Chairman of the committee, Jarigbe Agom, urgently requested that the minister should forward to the committee a comprehensive records of the award and disbursement of over N100bn and a list of companies engaged in the handling of the project.

According to the letter dated January 9 and made available to journalists on Wednesday, “I am writing to request for comprehensive brief regarding the utilisation of the sum of N100bn allocated by the Federal Government for the development of gas infrastructure aimed at providing Compressed Natural Gas to Nigerians as an alternative to fossil fuels.

“The committee is seeking detailed information on the process followed in the award and disbursement of funds to the companies benefiting from the allocation. I would appreciate insight into the compliance of these processes with the provisions of the Public Procurement Act 2007.

“Specifically, the committee is interested in understanding the steps taken in the opening of bids, the qualification criteria applied, and the subsequent awarding of contracts to the selected companies. Transparency and adherence to due process are crucial aspects of ensuring public trust and accountability in such initiatives.”