TheConvener and Executive Director of PowerUp Nigeria, Consumer Right, and Power Sector Policy Advocacy Organisation, Mr. Adetayo Adegbemle, has called for the review of the award of N1.2bn metering award to the De Haryor Global Services Limited over the allegation that the company is listed among NERC approved MAPs’ providers.
NERC, the Nigerian Electricity Regulatory Commission, is empowered by law to regulate the country’s power sector including power generation, transmission, distribution, and metering.
But the Minister of Power, Chief Bayo Adelabu, has refuted the allegation, saying that the award of the contract had solved a 20-year lingering problem in the sector.
However, Adegbemle in a statement sent to Blueprint, on Tuesday night alleged that the award of the metering contract was done in secrecy, saying that there was no evidence of public tender/bid for the N40bn worth of Contract, neither was there any evidence of meeting the Procurement Act procedures.
” On March 18th, 2024, the Minister (of Power) announced the award of a 12.7bn Naira contract to a little-known company called De Haryor Global Services Limited. Before this announcement, the company, De Haryor Global Services Limited, is not known to have handled any installation of this magnitude.
“De Haryor Global Services Limited is not a registered Meter Manufacturing/Assemblers Company, neither is it on the list of Manufacturers/Assemblers at the Ministry of Finance, and Ministry of Trade and Investment, and is not on the first schedule of NERC Approved MAPs.
‘There’s no evidence of public tender/bid for this 40bn Naira worth of Contract, neither is there any evidence of meeting the Procurement Act procedures. If anyone insists there’s a public tender, let them provide the names of other companies that bid for the installations. There’s no budgetary allocation for this project, neither in the Ministry of Power, nor the Ministry of Finance.
“A procurement of this magnitude requires FEC approval, no evidence this was sort, or granted. We ask that the FEC should review and reverse this process and culprits be investigated. Also, the Minister of Power should be immediately redeployed or replaced”, he alleged.
But Adelabu in a statement issued by his Special Adviser, Strategic Communications and Media Relations, Mr. Bolaji Tunji, explained that the Federal government had entered a tripartite agreement with Messrs Ziklagsis Network limited and Unistar International in 2003 for the supply of three million meters to distribution companies (DISCOs) in the country, within three years.
To kick start the project, he said a revolving metering loan of N32billion was released to Messrs Ziklagsis, adding that the agreement was not implemented while the fund remained in the bank account of Ziklagsis at the then Prudent Bank from where it moved to Skye Bank, Polaris and lately, Providus bank.
“With the privatization of distribution, the government proposed the metering of Ministries, Departments, and Agencies (MDAs) to accurately determine the consumption of these MDAs and also reduce accumulated debts. “This was what led to the initiative to meter military formations nationwide.
“Worried by its bludgeoning electricity debt, the Nigerian Army wrote a letter to the presidency requesting intervention to pay off the outstanding debt and the metering of their formations. The Federal government then directed the Ministry to look into the army’s request and utilise the funds with Ziklagsis.
“It was then that Ziklagsis was introduced to the Nigerian army by the Ministry of Power. It was around this period that the Nigerian Army also introduced De Haryor Global Services to Ziklagsis to enable them to work together. In November 2022, discussion began on the project among the parties and an agreement was signed between the Nigerian Army as a client, Messrs Ziklagsis as project supervisor and De Haryor Global Services as a service provider to commence the metering projects in Army barracks at a cost of N12.7billion, under the MDAs metering project.
“This predates the appointment of Adelabu as Minister of Power. Despite this, the money was not released to the service provider that had already gone ahead to seek funds for the acquisition of smart meters.
Concerned about the over eight million meter gap in the country and the liquidity squeeze in the Nigeria Electricity Supply Industry ( NESI), the Minister wondered how money meant for a national project could be held up untouched for over 20 years by an individual.
“He, therefore mounted pressure and escalated the matter to the presidency for the retrieval of the revolving fund from Messrs Ziklagsis plus accrued interest till date. This was duly approved by the President. Upon the Presdent’s approval, N12.7 billion was, therefore to be released in tranches to De Haryor Global Services to commence installation of the already procured smart meter.
“The Minister should therefore be commended for his effort in ensuring the recovery of the revolving meter fund which had been untouchable for over 20 years, thus enabling the eventual take-off of the project”, he said.
