NLC Accuses TCN of N20bn Procurement Fraud, Calls for Immediate Audit

The Nigeria Labour Congress (NLC) has condemned the proposed expenditure of nearly N20 billion for the emergency refurbishment of the Transmission Company of Nigeria (TCN).

Describing the initiative as a methodical undermining of a crucial national asset, the NLC has called for immediate action. In a letter addressed to the Minister of Power and signed by NLC president Joe Ajaero, the labor body urged a suspension of all current "emergency" procurement activities in TCN until a thorough forensic audit is completed.

The congress has also called on relevant anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC), to investigate the head of Procurement alongside the management team of TCN, scrutinizing each item in question.

The NLC alleges that the so-called "emergency refurbishment" is a pretext to secure contracts that would facilitate extensive financial misappropriation, converting public funds into private profits through mere documentation.

NLC stated, "The plan to allocate nearly N20 billion from TCN's budget for these purported emergency refurbishments appears more like a scheme to exploit a company already facing financial difficulties."

They further articulated their deep concern about a strategic national asset being systematically dismantled, warning the Ministry of an impending large- scale scam allegedly orchestrated by officials within TCN, who have seemingly neglected their civic duties in favor of personal gain.

The labour group voiced their apprehension, saying, "We are alerting your Ministry about a looming significant theft being orchestrated within TCN by a cadre of officials eager to profit, jeopardizing the company’s viability."

In addition, the NLC pointed to questionable plans to spend N191 million on controlling erosion at a single tower and extensive costs associated with fence and drainage work at another station, labeling them untenable and indicative of fiscal irresponsibility.

"It is clear there are strategies in motion to procure specialized transformers and switchgears from the same supplier in successive orders at progressively higher prices. This behavior does not qualify as procurement; it rather resembles money laundering disguised as efforts to upgrade the grid. There are intentions to overstock supplies like insulators and conductors at inflated prices under false pretenses of preparing for possible grid failures."

They expressed that these items risk becoming obsolete or never delivered, with profit shared among the procurement committee and vendors.

"This represents a critical and urgent issue. A faction within TCN aims to exploit "emergency" status to bypass established protocols and obscure these illegal activities with excessive paperwork. Should these procurements continue, TCN's financial health and operational capacity could be severely compromised for many years."

The NLC further warned that the grid could end up perpetually requiring urgent care, not due to technological inadequacies, but because the funds intended to support it have been pilfered.

The organisation insisted that the Minister take immediate steps to halt ongoing procurement processes at TCN pending a forensic investigation, urging cooperation from anti-corruption bodies. The NLC also called for inquiries into alleged land sales behind TCN’s substation in Katampe, Abuja as well as an employment controversy involving a staff member.

Asserting the urgency of these matters, the NLC emphasized the impatience of Nigerian workers, reminding that preventative measures can avert greater issues. They urged all efforts to safeguard TCN from detrimental exploitation.