Gas Project Fund: Senate Gives Edun 7 days To Explain How Over N100bn Was Disbursed

The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, has been given seven days by the Senate to give details of how the award and disbursement of over N100 billion to companies engaged in the handling of the Presidential Compressed Natural Gas, PCNG, projects were done.

The contract was allegedly said to have been awarded in breach of the Public Procurement Act 2017.

The Senate noted that they had to request the details as there were fresh plans by the PCNG to release another N130 billion to unspecified number of companies.

It said 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 extrabudgetary expenditure and gross violation of the Public Procurement Act was ignored.

The finance minister in a letter by the Chairman of the Senate Committee on Gas Resources, Senator Jarigbe Agom Jarigbe, PDP, Cross River North, was asked to forward to the committee comprehensive records of the award and disbursement of over N100billion and list of companies engaged in the handling of the project.

A group, Good Governance and Transparency Front, had written a petition, accusing the chairman of the steering committee of the presidential CNG initiative of approving the disbursement of the funds to cronies without following the due process and the Public Procurement Act, 2007.

The group also in the letter to the committee, stated that the PCNGI had not made any progress, even with the disbursement of N100 billion because the PCNG refused to engage experts in gas development in the execution of the project.

In the letter made available to journalists on Wednesday, the committee said, ”I am writing to request for comprehensive brief regarding the utilization of the sum of N100 billion allocated by the federal government for the development of gas infrastructure aimed at providing Compressed Natural Gas, CNG, 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 award of contracts to the selected companies.

”Transparency and adherence to due process are crucial aspects in ensuring public trust and accountability in such initiatives.

“Kindly provide documentation and details regarding the companies that received funding, outlining the specific projects or initiatives they are undertaking to promote the use of Compressed Natural Gas (CNG) in the country.

“I believe this information will be invaluable for our committee’s oversight responsibilities and contribute to ensuring the success and effectiveness of government‘s efforts in promoting alternative energy sources.

“I appreciate your attention on this matter and look forward to receiving the requested information in seven days from the date of receipt.

“The requested information should please be submitted in soft copy and 30 sets of hard copy to the clerk of the committee.”