The notice was contained in a letter titled "Re-consideration of Auditor General for the Federation Annual Reports," dated November 30, 2022, with Ref. No. HR/PAC/SCOS/9NASS/QUE.64/48, signed by the Chairman of the Committee, Hon. Oluwole Oke (PDP-Osun).

While noting that the committee does not allow representation, he directed the NBET Managing Director to appear in person alongside Dr. Marilyn Amobi, who served as MD and CEO from 2016 to 2020, to justify the reason for the non-rendition of the audited accounts for the years 2014, 2015, 2016, 2017, 2018, and 2019, on Thursday, December 8, 2022, at 11:00 a.m., to defend your accounts laid before the Parliament by the oAuGF.

The letter reads: "The Committee is in receipt of your correspondence and has reviewed your 2017-2019 Audited Accounts and resolved to request for the following additional information and documents to enable the Committee to carry out its legislative mandate: Indebtedness of International Customers (Republic of Benin, Togo, and Niger to NBET and TCN from 2018 to 2022). "The external auditor’s report showed that Nigeria has an international bilateral agreement on electricity energy delivery and sales with the Republic of Benin, Togo, and Niger. Prior to the electricity transitional arrangement, these agreements were administered by the Transmission Company of Nigeria. "However, on March 15, 2016, the Ministry of Power directed that the administration of these international customers should be transferred to NBET. Moreover, before this can take place, certain agreements and negotiations have to be made, which is why TCN and NBET came up with a sharing formula to be used to split payment from international customers since TCN issued a single invoice for both administrative charges and energy payments.

"Based on this, 24% of the payment received from international customers was deducted for administrative charges by TCN, while the balance of 76% was passed to NBET for the payment of GENCO's capacity and energy bill." The total invoices issued to international customers were 30.7 billion and 20.7 billion in 2018 and 2019, respectively. "Note 17(i) of the account receivables disclosed that the international customers owed NBET the sum of 17.3 billion while DISCO and GENCI owed 828 billion and 2.2 billion, respectively, as of 2019, while 7576 provision was made for impairment," said the letter. To this end, Hon. Oker asked for a schedule showing total invoices issued to international customers from 2018 to 2022, showing the value of invoices issued, amount paid, and outstanding balance for the three countries. According to Hon. Oke, the "assessment of the external auditor’s report for the year 2019" showed that the company has paid 3.03 trillion out of the total invoices of 4.014 trillion received from generating companies as of December 31, 2021, while the distribution companies have paid 1.308 trillion out of 3.773 trillion as of that date. This situation has adversely affected the liquidity required by the companies to meet their obligations. "The total outstanding invoices due from DISCOs are 2.4 trillion, and the estimated interest receivable is 931 billion based on an interest rate of NIBOR plus 4%." Produce a schedule showing the value of invoices raised by generating companies from 2016 to 2022, the amount paid by NBET, and the outstanding balance as of the date indicated.

"Provide a schedule showing the value of invoices issued to distribution companies from 2016 to 2022, the amount paid by them, and the outstanding balance," he said. In the same vein, the lawmaker unveiled plans to revisit the investigation into the oAGF’s audit report on the utilisation of the N1.3 trillion loan facility granted by the Federal Government to NBET. "According to the external auditor's report, the company was granted a loan facility worth N701 billion in 2017, with an additional N600 billion granted by the Federal Government of Nigeria in 2019." "The company’s ability to meet its obligations is dependent on continuous support from the FGN." This is not sustainable. This is the basis upon which the external auditor reported in the audited accounts that its opinion was not modified on this matter. "Page 26 of the submission reflected that the company’s borrowing stood at N772 billion as of December 31, 2019," he said. To this end, the NBET Managing Director is to provide detailed utilisation records of these two credit facilities and a loan repayment schedule showing how much has been repaid and the unpaid principal and interest. On the possible non-compliance with the procedure for disposal of government assets, he observed that the "review of the statement of cash flow" confirmed that the sum of $7.5 million represented proceeds realised from the disposal of property, plant, and equipment in the year 2019. In addition, a review of the fixed asset schedule revealed that $69,9 million in motor vehicles were disposed of.

Consequently, the Committee requested a schedule showing the original cost of the asset, date of acquisition, current value prior to disposal, disposal amount, date of disposal, and name of beneficiaries; Provide proof of the auction advertisement, as well as detailed information about the auctioneers; Produce evidence of payment by beneficiaries, as well as all necessary approvals, prior to disposal as a disposing entity. While noting that NBET engaged in outrageous expenses, Hon. Oke said: "Note 8 of the year 2019 Audited Accounts disclosed that the company spent $1181 million on consulting services while the sum of 79.1 million was expended on local and international travel." Meanwhile, the company failed to separate the cost element of international travel from the local one. In the bid to ascertain the infraction, the company is expected to "produce utilisation records vis-à-vis the amount expended on international travel showing approval from SGF to travel, air ticket "to and fro,"  international passport, list and details of beneficiaries, purpose of travel, evidence of training, among others, and provide utilisation records of this consultancy service."

While noting that there was a possible breach of procurement law, Hon. Oke observed that the "Fixed Asset Schedule disclosed that the company acquired various assets totaling 294 million, comprising FF of $35m, computer equipment of $10.7 million, motor vehicles of $182.1 million, and office equipment of $66m in the year 2019."

Consequently, the company is to provide all procurement records, down to award letters and payment vouchers, with respect to these non-current assets acquired, as well as evidence of deduction and rendition of statutory deduction, inclusive. On the issue of a possible supply of energy by NBET to DISCO without valid bank guarantees, he observed that: "Under the vesting agreements signed by the distribution companies, the distribution companies provided bank guarantees covering three months of energy supply in case of default."

"Further analysis revealed that the bank guarantee provided by Abuja Electricity Distribution Company through the United Bank for Africa expired on July 1, 2022, while the guarantee provided by Kaduna Electricity Distribution Companies through Fidelity Bank also expired," he reiterated.

To this end, the company is expected to provide a written submission, backed up with evidence, to show that these two companies have renewed the bank guarantee, as well as copies of the bank guarantee.

"Further review of the Statement of Comprehensive Income revealed that the company has been consistently reporting loss for years despite huge capital injection by FGN; losses of 109 billion, 241 billion, 155 billion, and 334 million in the years 2019, 2018, 2017, and 2016, respectively," the lawmaker said.

To this end, Hon. Oke requested a brief as to why the company made a loss within the referenced years as well as the net profit or loss position for the years 2020 and 2021. On the status of trade and other receivables from 2019 to 2021, he noted that "Further assessment of the statement of financial position showed that the company’s receivables as of December 31, 2019 were 1.5 trillion, while those of 2018 were 1.06 trillion." "Trade receivables are amounts due from customers for services rendered in the ordinary course of business." Consequently, he requested a schedule showing the breakdown of the years 2019, 2020, and 2021 receivables, such as name of debtors, amount owing, date service rendered, and date due for payment, adding that the "Statement of Financial Position revealed that the company’s payables as of December 31, 2019 were $1.2 trillion, while those of 2018 were $9546 billion." To this end, the company is required to provide a schedule showing the breakdown of the years 2019, 2020, and 2021 payables, such as the name of creditors, the amount owing, the date service was rendered, and the date payment was due, and the reason for having these huge payables unsettled, bearing in mind that late settlement of obligations could lead to litigation in court. On the possible cause of late rendition or non-rendition of audited accounts, the Committee stated that: "Our review of the submission confirmed that the audited accounts for the years 2014, 2015, and 2016 were submitted to the Office of the Auditor General for the Federation on October 13, 2021, contrary to Financial Regulation, which states that the audited accounts should be rendered on or before May 31 of the succeeding years. Similarly, the audited accounts for the years 2017, 2018, and 2019 were submitted to the Auditor General on November 23, 2022.

The Committee mandated the NBET Managing Director "to come along with Dr. Marilyn Amobi, who served as MD/CEO from 2016 to 2020, to justify the reason for the non-rendition of the audited accounts for the years 2014, 2015, 2016, 2017, 2018, and 2019. "You are to provide NBET audited accounts for the years 2020 and 2021 and evidence of their renewal to the Office of the Auditor General for the Federation."

"You are to come along with your external auditors, Aminu Ibrahim Co. of City Plaza, Plot 596, Ahmadu Bello Way, P.O. Box 971, Garki 2, Abuja, to explain its involvement or otherwise in the late rendition of audited accounts to the Auditor General for the Federation," the letter read in part.