The House of Representatives on Tuesday resolved to carry out a forensic audit of the activities of the Nigerian Communications Satellite (NIGCOMSAT) Limited from inception to date.
The resolution was passed sequel to the adoption of a motion on the ‘Need to investigate the alleged sleaze, misappropriation and non-profitability of the NIGCOMSAT Limited, sponsored by the Minority Leader, Hon. Ndudi Elumelu.
In his lead debate, Hon. Elumelu observed that the company which was established and incorporated in 2006 by the Federal Government with the aim of revolutionizing the information and communications technology system in Nigeria as well as to improve national security, broadcasting, internet access, e-governance, Health and the Educational Sectors of the country, has failed to achieve its objectives.
According to him, “because the vision of NIGCOMSAT was for it to be the leading satellite operator and service provider in Africa, the company in, 2007, launched the first geo-stationary Communications Satellite in the Sub-Saharan Africa, so as to exploit the commercial viability of the country’s Communications Satellite for its Socio-Economic benefits.
“The House is aware that it costs the Nigerian Government the sum of $340 million of tax payers money to build the NIGCOMSAT-l and a further N43.500 billion from the federal allocation as running cost and another $127 million as debt servicing to the Chinese Government, but there is little or nothing to show for these huge investments.
“The House is concerned that while the fixed satellite service business has proven lucrative in so many countries with a worth estimate of the global space as high as N126 trillion and 75% of this coming from commercial revenues, NIGCOMSAT is yet to get a slice of the pie and has generated zero revenue.
“The House is disturbed that even though the Company has not been able to make contributions to the nation’s revenue, it has been riddled with series of allegations ranging from contract scam to the tune of N8 billion to bribery of Government Agents and withholding of vital documents to ensure the cover up of the massive irregularities against the Management of the company.
“The House is also disturbed that at a time, a Managing Director of the Company was alleged to have wrongfully declared her assets and signed off the company’s Direct-to-Home (DTH) facility to NIGUS International Investment Ltd (a company owned by the father in law of the Head of DTH) after she acquired shares in NIGUS through proxies.
“The House is worried by the allegations that the Management of the Company breached government policy on procurement by ensuring that procurement matters are handled strictly between the offices of the Managing Director and that of the Legal Adviser, which is a breach of the country’s financial regulations.
“The House is also worried that between September and December 2011, the Management of NIGCOMSAT paid Fasaha Intercontinental Insurance Brokers Ltd the sum of N5,893,920,000 for Insurance premium of the launch of NIGCOMSAT-1R Satellite which is a non-consultant job that requires the approval of the Federal Executive Council, such unguarded expenditures have made the company unable to meet the financial obligations owed to the nation and if left unchecked, will result in further loss of the nation’s scarce revenue,” he noted.
To this end, the House mandated the Committees on Information Technology (ICT) and Finance to carry out a forensic audit of the activities of the NIGCOMSAT Limited from inception to date and report back within four weeks for further legislative action.
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