Senate’s Probe of TAM and Another Jamboree

Since the return of democracy in 1999, both chambers of the National Assembly have been carrying out several probes into the activities of federal government’s ministries, departments, and agencies without results. It is therefore believed that the panel constituted by the Senate to probe the over N11.35 trillion spent on the refineries will embark on another jamboree,  writes  Wale Igbintade

The Senate last Tuesday constituted an ad-hoc committee to investigate the Nigerian National Petroleum Company Limited (NNPCL) over the whopping N11.35 trillion allegedly spent on the Turn Around Maintenance (TAM) of the country’s four moribund refineries, without result, in the last 13 years.

The decision to carry out the probe of the four refineries – two in Port Harcourt and one each in Warri and Kaduna – was taken after the red chamber deliberated extensively on a motion by Senator Sunday Karimi, who represents Kogi West.

Karimi’s motion was on the urgent need to investigate the various TAM projects of Nigerian refineries in order to uncover waste and forestall further waste of scarce public resources.

The Deputy Senate President, Senator Barau Jibirin, who presided over the plenary set up the committee after the Kogi West senator moved a motion to investigate the turnaround maintenance projects of Nigerian refineries to forestall waste of public resources.

Jibirin appointed the senator representing Kogi East, Isah Jibrin, as the committee chairman while the Chairmen of the Senate committees on petroleum resources downstream; upstream; gas; finance; appropriation, and public accounts are members.

The deputy senate president said those who had taken money meant for the TAM should be brought to book. He also directed that the committee should submit their findings to the Senate within four weeks.

The red chamber asked the ad hoc committee to investigate all contracts awarded for the rehabilitation of all state-owned refineries. It also asked the panel to ascertain progress on the ongoing works in all refineries in order to forestall waste and corruption.

The committee is also expected to interrogate the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPCL, and the Bureau of Public Enterprises (BPE) on the best approach to commercialise and ensure the profitability of the state-owned refineries.

Karimi, while moving his motion, lamented that state-owned refineries in Nigeria had been a serious drain pipe of public finance, depriving the citizens of the joy of being an oil-producing nation.

Backing his motion with figures, he said: “Between 2010 to date, Nigeria is estimated to have spent N11.35 trillion (N11,349,583,186,313.40), excluding other cost in other currencies, which include $592,976,050, €4,877,068.47 and £3,455,656.93, on renovation of refineries, yet they are unproductive.

“The Federal Government of Nigeria has spent over N6 trillion between 2010 and 2023, on fuel subsidy due to Nigeria’s low refining capacity and has spent almost twice the amount on rehabilitating (TAM) projects on its refineries in Port Harcourt, Kaduna and Warri between 2010 and 2022.

“Despite the moribund state of the four refineries, the operating costs of the refineries between 2010 and 2020 is estimated at N4.8 trillion. The refineries are estimated to make a cumulative loss of N1.64 trillion within four years.”

Karimi explained: “The Federal Government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over a period of seven years from 2013-2019 at an estimated cost of N12,161,237,811.61.

“In addition, on the 18th March 2021, a rehabilitation contract was executed between NNPC/PHRC and Tenenimont SPA at a lump sum of $1,397,000,000 only (about N75 billion amidst public criticism.

“The Phase 1 of the project is expected to be completed in 28 months after the contract, Phase 2 within 24 months, and Phase 3 within 44 months of execution. Despite this, the Port Harcourt Refinery remains a money pit. Going by projections and representations from NNPCL, the renovation works ought to be completed and operations of the refinery commenced by June 2023.

“In a bid to revitalise the Warri Refinery, the federal government has injected huge public funds into revamping Warri Refinery & Petrochemical Company Limited to the tune of over N28,219,110,067.10 between 2014 and 2019.”

He added: “That particularly, around the 24 June 2022, the Federal Executive Council awarded Maintenance Services for Quick Fix Repairs of Warri Refinery to Daewoo Engineering and Construction Limited at $497, 328, 500, yet at the moment the Warri Refinery is inactive.

“This is different from the 2017 contract award to Saipem Contracting Nigeria Limited for Tech Plant Survey of the Warri and Kaduna Refineries at 2,025,00.32 Euros.

“The Kaduna Refinery and Petro-Chemical Company (KRPC) has over the past 10 years gulped N2,266,248,434 in the name of rehabilitation, yet the Refinery remains unproductive. The NNPCL approved a $741 million renovation deal with Daewoo Engineering and Construction Limited to renovate Kaduna Refinery in February 2023 and it is intended to restore the refinery to production of 110,000 barrels of petrol per day (at least 60 per cent capacity) by early 2024.”

In their various contributions, senators condemned those who ripped the nation of its scarce resources and vowed to bring them to book.

While this was going on, the House of Representatives on Wednesday also resolved to investigate all the financial interventions, amounting to over N7 trillion, in the power sector since its privatisation to ascertain whether the funds were judiciously utilised

But those who have been following the probes initiated by the National Assembly since the enthronement of democracy with no result, believe that this is another jamboree that would lead to nowhere. They believe that most of the probes initiated by the National Assembly are opportunities for its members to extort money from the agencies they are investigating instead of digging into alleged malfeasance, mismanagement of funds and other infractions.

For instance, in less than three months, the 10th Assembly has launched over 50 probes to dig into alleged malfeasance, mismanagement of funds and other infractions by MDAs, directing either standing or ad hoc committees to carry out the exercise within a time frame.

This has been the trend for ages, especially at the commencement of legislative sessions. But there are concerns about how much these series of unending probes, which often gulp billions of taxpayers’ funds to conduct, have achieved in saving the country’s wobbling economy through blockage of leakages and prosecution of corrupt officials.

Experience has shown that the noise emanating from these investigative hearings which often come with much drama and startling revelations of mind-blowing corruption, fizzle away after the initial media hype.

Despite the numerous probes, there is still endemic corruption being perpetrated in the system.

In the 9th Assembly, just like previous assemblies, hundreds of probes were carried out by both chambers but many of them were either not concluded or abandoned before the end of the life of the parliament.

However, a major setback for most of the probes is that the National Assembly lacks the constitutional power to prosecute erring officials. After investigations, the parliament often sends resolutions and recommendations to the executive for implementation. But it is at the discretion of the executive to implement such recommendations.

Analysts have said the constitutional provisions that make the implementation of the resolutions and recommendations made by the parliament non-binding on the government have only made it easy for agencies to disregard them.