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Federal government orders forensic audit of DisCos

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The federal government has ordered a forensic audit of the operations of the electricity distribution companies (DisCos).

The decision was reached at the National Economic Council (NEC) meeting chaired by Vice-President Yemi Osinbajo on Thursday.

Speaking with reporters at the end of the meeting, Philip Shaibu, deputy governor of Edo state, said governors were asked to submit details of their investment in the DisCos from 2013 till date.

He also said the Nasir El-Rufai led ad-hoc committee on power was given additional two months to audit the DisCos over their alleged poor investment in the sector.

In January, el-Rufai had said the federal government spent N1.7 trillion on electricity in the past three years without any significant result.

“NEC also received an update on the review of the status of ownership structure of electricity power distributing companies. The Kaduna state governor briefed NEC on the progress so far made and responses so far received from general public,” Shaibu said.

“He (El-Rufai) also told NEC that they will be carrying out forensic audit of all bank accounts of DisCos and also that the state governments to provide details of their investment of DisCos.

“One of the reasons the committee asked for additional two months was to deal with two other issues that arose during NEC.

“You all know that the issue of privatization is still questionable but nonetheless, the federal government and governors feel we should not lament. What we should do is to look for solutions. Because if government lament the populace will definitely lose hope.

“So they need the additional two months so that when they are reporting to the council it will be wholistic so that one council decision will be made that will deal with the issue of the DisCos.”

Also speaking on the development, David Umahi, governor of Ebonyi state, said the DisCos have made no significant investment in the power sector since 2013.

“I think the federal government is trying to take the bull by the horn by trying to find out what investments these DisCos made towards this privatization,” the governor said.

“The first suspicion is that they have made no substantial investment and we will take it when we get all the solutions.”

Last week, Sale Mamman, minister of power, had asked DisCos to perform or  quit for other investors.

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