Nelmco stops fraudulent claims, verifies N462bn PHCN debts



02 August 2015, Lagos – The Nigeria Electricity Liability Management Company Limited, NELMCO, has made moves to stop fraudulent claims even as it has verified liabilities worth N462 billion under the defunct Power Holding Company of Nigeria, PHCN.

It was gathered that the verification which was initiated by the new Managing Director, Fagbemi Nathaniel Adebayo was earlier frustrated by actors in the power sector.

NELMCO it was learnt completed the three week verification exercise alongside technical partners from the Federal Ministry of Power, Office of the Accountant General of the Federation and the Debt Management Office, DMO, to verify factual status of outstanding N462.754 billion worth of liabilities incurred by PHCN.

NELMCO was incorporated by the government in line with its Electric Power Sector Reform Act (EPSR) 2005, to manage PHCN’s stranded liabilities vehicle for Nigeria’s smooth transition into a liberal and advanced power sector. The agency had seen much controversy since 2013 with reports of its previous leadership allegedly stripping assets without unduly.

Sources said the administration under erstwhile MD, Sam Agbogun paid liabilities worth billions of naira without conducting any verification for the status thereby resulting what could be described as multiple payments for similar claims. The initiative handled by the new Managing Director, Mr Adebayo is expected to save the government billions of naira that would have gone down the drain like previous transactions to settle some PHCN liabilities.
*Simon Echewofun Sunday – Daily Trust

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