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Reps and PHCN debt recovery

Published by Guardian on Thu, 10 May 2012


THE House of Representatives got it wrong of recent when it issued a directive to the Power Holding Company of Nigeria (PHCN) to stop electricity supply to the police, military and other corporate bodies if they failed to pay an estimated N1.9 billion debt within one month. It is true that the debt burden on the PHCN is not ideal for the country's progress; the need to recover such debts also cannot be over-stressed. But the House should have no business giving direct orders to government units and agencies or departments without going through the Executive that is vested with the control of the units. More pointedly, the House is not a debt-collecting agency; and it ought not to assume the duty of implementing laws simultaneously as it enacts them. Such a function is not envisaged as one of its oversights.By the House directive, the respective ministers in charge of the alleged debtors are to ensure payment, failing which the government departments risk disconnection. Similar directive was extended to the Head of Service and all MDAs indebted to PHCN. Not only that, Finance Minister, Dr. Ngozi Okonjo-Iweala would ensure deduction of money directly from their overhead allocations and remit same to the power company at the expiration of the deadline. As a further charge, the House Joint Committee on Power and Public Accounts has been mandated to investigate the use of allocations on utility bills to affected units to ascertain the rationale of the huge debts.No doubt, the nation can still take some positives from the oversight functions of the House of Representatives, particularly regarding vibrancy of discussions, investigation of official corruption and other acts of misconduct, as well as checks on the executive through informed motions. Indeed the House members have in the past earned commendation in the course of discharging these functions. Unfortunately, they sometimes overreach themselves with populist decisions, with little bearing on their legislative capacity. They will do well to exercise restraint and reflect on constructive criticisms with a view to charting a proper course for the future.Normally, the House concern over PHCN's debts is faultless, against the need to ensure probity, and prevent corporate bodies from carrying on with impunity in their indebtedness to other government agencies. The House rightly observed too that the debts portend grave danger to the sustainability of PHCN and allied entities, besides being a threat to attraction of private investors to the power sector as envisaged. But they must act within constitutional provisions.Simply, the directive is akin to engaging a vehicle gear in the overdrive in an improper condition which can put the vehicle in danger. The House should not be oblivious of the fact that their primary responsibility is to make laws and not to implement them. Having at least passed some laws successfully in conjunction with the Senate, the House should leave implementation to the executive arm, which has bodies saddled with that responsibility. The legislators can achieve more, if they avoid distractions such as trying to implement motions or legislations. Besides, if the House feels strongly about facilitating private investment in the power sector, and is desirous of its decision or motion having the proper weight of law, a joint resolution with the Senate that would be forwarded to the executive for implementation would have helped the system better.Ordinarily, it should be a matter for concern that PHCN's neglect of procedures over the years has led the company to this sorry state. Service has been very poor, if not the worst that could be found anywhere; yet officials could not devise any means of recovering debts in the face of PHCN's crippling service. Subsequent managements of the power authority have relied on constant support from government because the service is classified as social. The electricity supply sector has been an unmitigated disaster for the country.Not surprisingly, the commercialization/privatization efforts have tottered since plans were announced to privatise PHCN. Following on the heels of the defunct telecommunications giant, NITEL, the power authority (now PHCN) has been the most ridiculed organisation in terms of corruption. Subscribers are often subjected to regimes of crazy billing and illegal disconnections (sometimes to force them part with tips); illegal charges for materials that the company ought to supply free to connect equipment, and thwarting subscribers' efforts to secure pre-paid meters that would have enhanced proper billing.It is also instructive that many PHCN staff members have been up in battle against government's moves to attract investors, despite serious official efforts to allay fears of mass disengagement of their members many of who have been assured of places in the unbundled outfits.The rot in the electricity supply sector would seem to justify some intervention by the House members, as same would be relevant for any other national issue ' but they should do it within constitutional provisions to address issues, and to advance the principle of balance of powers in the country's presidential system of government. There lies their honour in the promotion of democratic tenets.
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