BPE Report: Senate orders sack of DG

Posted by admin Legislature, Senate Thursday, November 24th, 2011

HAVING completed its investigation, the ad hoc committee on privatisation and commercialisation set up by the Senate to investigate the privatisation and commercialisation activities of the Bureau of Public Enterprises (BPE) from 1999 to date submitted its report on Wednesday and recommended the sack of the Director-General of BPE, Ms Bola Onagoruwa.

The setting up of the committee was sequel to a motion moved by Senator Ahmad Lawan, who incidentally chaired the committee with Senators Babafemi Ojudu; Ali Ndume; Philip Aduda; Ifeanyi Okowa; Hope Uzodima and Mohammed Magoro as members.

The committee was to investigate the process through which the BPE privatised the companies and establish the agreements and conditions upon which the privatisation was consummated.

It was also to determine how much was realised from the sale of the companies and where the proceeds were paid into and to determine how many jobs were lost and gained after the privatisation of companies, identify factors that were militating against the expected improved and good performance of the privatised companies.

The report said the former Directors-General, Mallam Nasir el-Rufai, Dr Julius Bala and Mrs Irene Nkechi Chigbue, should be reprimanded by the National Council on Privati-sation (NCP), “for seeking approval directly from the president instead of the NCP, as stipulated in the Public Enterprises Act 1999.”

It added that “Dr Julius Bala should be investigated by anti-graft agencies for giving approval to Folio Communications Limited for the illegal sale of assets of Daily Times Nigeria Plc and that Director-General, BPE, Ms Bolanle Onagoru-wa, be relieved of her appointment for gross incompetence in the management and for illegal and fraudulent sale of the five per cent of Federal Government’s residual shares stated in Eleme Petrochemicals Company Limited (EPCL).”

The committee ordered the NCP to rescind the sale of Transcorp Hilton Hotel, for failure of the core investor to deliver on the fundamental provisions of the share purchase agreements.

The committee also ordered that the NCP should rescind the sale of Abuja International Hotels Limited (Nicon Luxury Hotel), for failure of the core investor to also deliver on the provision of the share purchase agreement/post-acquisition plan.

It equally asked NCP to rescind the sale of Daily Times of Nigeria (DTN) Plc to Folio Communications Limited, in keeping with the court judgments in suit nos. FHC/L/CP/1328/2009, FHC/L/CP/344/10 and FHC/L/CP/130/2010.

It added that the 140,252,900 shares allotted to Folio Communications Ltd be returned to DTN Plc, insisting that DTN Plc had paid for 140,252,900 shares that is 56 per cent of its shares and that Folio Communications Ltd was no longer a shareholder of Daily Times of Nigeria Plc.

The committee said that the sales of assets of Daily Times Nigeria Plc by Folio Communications Limited and its directors should be investigated by anti-graft agencies and the sold assets recovered

The committee, in its recommendations, stated that the BPE should source for funds through budgetary means, to settle outstanding staff liabilities in ALSCON (N2.7 billion), Delta Steel Company (N5.2 billion) and Federal Seperphosphate Fertilizer Company (N73 million).

It also asked that the share purchase agreement of Volkswagen Nigeria Limited, now VON Automobile Nigeria Limited, should be rescinded for non-performance and re-advertised for sale.

It recommended that the National Assembly committees on privatisation should intensify their oversight of the privatisation programme.

-Tribunewp_posts