The Senate has resolved to probe the failed controversial Make Up Gas Deal brokered by former minister of Finance of finance,Budget and National Planning, Dr Zainab Ahmed.
The lawmakers who criticised the former Minister for poor handling of the deal resolved to get to the root of the matter.
The former Minister was fingered to be responsible for railroading the country into the messy deal.
The senate’s resolution followed a motion sponsored by Senator Aniekan Etim Bassey representing Akwa Ibom Northeast Senatorial District, titled: “Need to Investigate the Controversial Make Up Gas, (MUG), Reprocessing Deal Involving the Federal Ministry of Finance, Niger Delta Power Holding Company , Calabar Generating Company Limited and ACUGAS Limited.
Senator Aniekan explained that the FG was expected to pay over $10 million monthly to ACUGAS Limited which was under the protection of “take or pay” clause.
The clause, he explained, compelled the Federal Government not to default payment of $10 million, whether the Calabar Genco takes delivery of gas or not.
The Lawmaker frowned at the controversial clause, stressing that Nigerians are also worried, given the serious financial burden it would have on the national treasury.
He said: “Recalls that under the said GSA , the Federal Government is obliged to pay over $10 million monthly to ACUGAS Limited and this monthly obligation was protected and secured with a “take or pay”, clause, implying that the monthly payment of over $10 million must discharge unfailingly by the FG.”
He lamented that all effort to get the FG out of the doldrum failed, leading to a Reprocessing arrangement of gas already paid but not utilised.
According to him, the bid to get Nigeria out of the controversial “take or pay”, failed and put in place an arrangement to reprocess and redirect the gas for which Nigeria has already paid for, but not utilised over time.
The Lawmaker linked the former Minister of Finance under the immediate past administration of Muhammadu Buhari as responsible for railroading the country into that mess.
“The then Minister of Finance, Budget and National Planning Dr Zainab Ahmed initiated a Make Up Gas Reprocessing Deal Involving Calabar Genco and ACUGAS Limited.”
In their reaction, Senators were unanimous that the development was unfortunate and a rape on the national coffers.
The Deputy Senate President, Senator Jibrin Barau who presided over Thursday’s plenary upheld prayers that the relevant Committee will investigate the matter when constituted.
Barau insisted on due diligence in the handling of government transactions with private sector, “urging the Federal Government particularly the Office of the Attorney General of the Federation to ensure due diligence in the preparation and execution of transaction agreements with companies and other investors to avoid the ugly scenario government is facing.”