A high wire presidential intervention brokered by Angela Merkel, German Chancellor led to the inclusion of controversial firm, Siemens Nigeria in the energy partnership deal between Nigeria and Germany, Nigeria CommunicationsWeek investigations can now reveal.
Though a groundswell of criticisms have greeted the deal, the Federal government is going ahead with the energy deal where Siemens Nigeria and four other German firms — EVONIK, ArGe, E.ON and KfW Ipex Bank are expected to boost power supply in electricity starved Nigeria.
Siemens which was suspended and its supply contract cancelled in December 2007 by the Federal Government for allegedly offering $14million bribe to Nigerian officials will act as lead engineers for various power projects in different parts of Nigeria under the new energy deal.
The projects include the rehabilitation and implementation to supply water; problem–solving assistance; and capacity building — are expected to inject about 6,500 megawatts of electricity into the national grid between 2008 and 2020.
Nigeria CommunicationsWeek gathered that President Umaru Musa Yar’Adua, was particularly impressed with the concerns expressed by the German Chancellor over Nigeria’s notoriously unreliable power supply and offered her countries expertise to solve it.
Siemens is also credited with wealth of knowledge of the Nigeria energy environment being the first company in West Africa to establish modern production facilities for power distribution and control systems.
It built the Geregu Gas Power Plant in Kogi State, North Central Nigeria in February, 2007 and it is also the first company in Nigeria to manufacture medium- and high-voltage switchgear, distribution systems, transformers and control panels, which are still widely used in Nigeria's industrial sector today.
A close source to the presidency said that Yar’Adua was also counting on a number of factors including assurances by Siemens that it will henceforth conform to global best practices in Nigeria and elsewhere.
Critics said that the reasons were pedestrian describing it as "moral somersault" which show that there is no genuine commitment to tackle the power crisis in Nigeria.
Yinka Odumakin, national publicity secretary, Afenifere, said that "the only redemptive route for the administration is to get Siemens out of this deal"
Odumakin also said that "there is no way the Yar’Adua presidency can convince right-thinking people that this Siemens deal is not borne out of moral compromise. It is rather sad that while the nation is waiting for what the House of Representatives would do on the report of the Elumelu Committee on power probe which indicted former President Olusegun Obasanjo, Segun Agagu, governor of Ondo state, Liyel Imoke, former governor of Cross River state and others, President Yar’Adua has entered into another phoney deal that may go the way of the squandered $16billion of Obasanjo era"
Elsewhere,Hon Dino Melaye, former chairman, House Committee on Information accused the president of "improper and immoral characteristics" by patronizing Siemens, a firm blacklisted last year over alleged bribe scam.
Mr Dahiru Abdullahi, national secretary, Progressive People's Alliance (PPA) said that such partnership with a `discredited' company suggests government's tolerance for corruption''.
