ALL things being equal, the polity is likely to be heated by yet another inquest by the National Assembly ' this time, the Senate.In the sixth dispensation of the national legislature, the House of Representatives mandated its committee on power, led by Ndudi Elumelu, to investigate the huge sum of money spent on power projects in the country between 1999 and 2010 without corresponding results.The panel came out with a damning report, asking many contractors to make refunds while some contracts were recommended for revocation. Mixed reactions greeted the report, which, till date, is unattended to.Against this backdrop, not many Nigerians were enthusiastic when the Senate raised a seven-man ad-hoc committee, led by Senator Ahmed Lawan, to investigate the power projects, following an allegation that over $16bn was spent on scheme by the Olusegun Obasanjo government without results.The appointment of Lawan (a member of the rival All Nigeria Peoples Party (ANPP), who moved the motion on the floor of the Senate) to lead the panel demonstrated the seriousness of the Senate to the instant matter.Apparently aware of themisgiving of Nigerians, Lawan iterated that the investigation was not going to be another probe by the National Assembly.And two weeks ago, the committee turned in its report, indicting almost all thepast Directors-General of the Bureau of Public Enterprises (BPE).The panel came down hard on the BPE operators thus: 'That the former Directors-General, Mallam Nasir el-Rufai, Dr. Julius Bala and Mrs. Irene Nkechi Chigbue should be reprimanded by the NCP (National Council on Privatisation) for seeking approval directly from the President instead of the NCP as stipulated in the Public Enterprises Act 1999.'That Dr. Julius Bala should be investigated by anti-graft agencies for giving approval to Folio Communication Limited for the illegal sale of assets of Daily Times Nigeria Plc.'That Director-General, BPE, Ms Bolanle Onagoruwa be relieved of her appointment for gross incompetence in the management of the Bureau of Public Enterprises and for illegal and fraudulent sale of the five per cent of federal government of Nigeria's residual shares in Eleme Petrochemicals Company Limited (EPCL).'Other recommendations Of The PanelTHAT Section 1(3) of the Public Enterprises (Privatisation and Commercialisation) Act 1999, which states that The National Council on Privatisation (in this Act referred to as 'the Council') established under section 8 of this Act may, from time to time, by order published in the Gazette alter, add, delete or amend the provisions of the First Schedule to this Act, should be amended because it contradicts the power of the National Assembly to make laws under the Constitution of the Federal Republic of Nigeria 1999 as amended.' That Section 5(3) of the Public Enterprises (Privatisation and Commercialisation) Act 1999, which states that 'Not less than 10% of the shares to be offered for sale to Nigerians shall be reserved for the staff of the public enterprises to be privatised and the shares shall be held in trust by the public enterprises for its employees' should be amended to include the host communities.' That the management of BPE should be reorganised, to make it effective and efficient.' That Presidential interference in the privatisation process should be avoided in the future and that the National Council on Privatisation (NCP) should set-up an NCP Sub-committee to oversight post-privatisation monitoring activities of BPE.' Thatthe five-year post-privatisation monitoring period (Lock-in-period) should be reviewed upward to 10 years. This is to enable the core investors to implement the Post-Acquisition Plans (PAP) and BPE to monitor compliance.' That BPE should refund bid bonds approved for refund by NCP, including Kaura Motors Ltd, N61.2million; Onoja & Sons, N625,000; Agric Multi Services, N1.7million and Abuja Gateway Consortium, $500,000.' That BPE should close all privatisation proceeds accounts in commercial banks and henceforth, put all proceeds in privatisation proceeds account in the Central Bank of Nigeria in compliance with section 19(1) of The Public Enterprises (Privatisation and Commercialisation) Act 1999.' That BPE should discontinue the use of privatization proceeds to settle staff terminal benefits, consultancy fees, transaction expenses and execution of capital projects. It should approach the National Assembly for appropriation as provided for in Section 80 of the Constitution of the Federal Republic of Nigeria 1999 amended.' That the National Assembly Committees on Privatisation should intensify their oversight functions of the privatisation programme.' That BPE should source for funds through budgetary means to settle outstanding staff liabilities in ALSCON (2.7billion), Delta Steel Company (N5.2billion) and Federal Superphosphate Fertilizer Company (N73million).' That BPE should standardize protective clauses in Share Purchase and Concession Agreements in privatisation of public enterprises in the national interest.' That in the automobile sector, the Federal Government should comply with the New Patronage Circular number SGF.OP/S.3/VIII/250 of April 12, 2011 and also, adopt National Automotive Council recommended tariff regime.' That the Share Purchase Agreement of Volkswagen Nigeria Limited, now VON Automobile Nigeria Limited, should be rescinded for non-performance as provided in the SPA and re-advertise for sale.' That the Economic and Financial Crimes Commission (EFCC) should immediately be drafted to investigate the economic crimes being perpetuated against the nation at VON Automobile Nigeria Limited premises in Lagos by Barbedos Ventures Limited (BVL).' That the taxes and import duties accruable to the Federal Government on all goods smuggled into the warehouses of VON Automobile Nigeria Limited should be computed and recovered by the Nigeria Customs Service (NCS) and Federal Inland Revenue Service (FIRS) respectively.' That the National Council on Privatisation (NCP) should rescind the sale of ALSCON to Dayson Holdings BV and re-advertise for sale.' That the National Council on Privatisation (NCP) should rescind the sale of Delta Steel Company to Global Infrastructure Holdings Limited and Global Infrastructure Nigeria Limited and re-advertise for sale.' That the 469 plots sold to third parties/private individuals (or companies) at market rates and the 270 plots allocated as public relation/palliative measures to the communities/leaders in Delta Steel Company Township 1 Housing Estate should be rescinded and their monies returned to them by BPE.' That the Federal Government should implement the Inter-ministerial Technical Audit Report on Ajaokuta Steel Complex dated July 2011, which recommended completion and commissioning of the plant by the Federal Government.' That the Federal Government should re-inject funds to restart Nigeria Iron Ore Mining Corporation (NIOMCO), Itakpe, to enable it produce the needed raw materials for the country's steel plants.' That the National Council on Privatisation (NCP) should rescind the sale ofJosSteel Rolling Mills for non-performance and re-advertise the enterprise for sale' That the Federal Government should increase the levy on imported finished paper from the present five per cent in order to encourage local production; that the Federal Government should ban the export of waste paper from Nigeria, being raw material for paper production.' That Nigeria Re-insurance Plc should immediately refund the sum of one billion (N1billion) paid by BPE on February 2007 as contribution of the Federal Government for recapitalisation with accrued interest.' That Nicon Insurance Plc should immediately refund, with interest, the sum of N900 million to the Federal Government being money paid by BPE on February 2007 as contribution for recapitalization.' That the committee recommends legislation to support Sector Reforms. The following Bills were presented by BPE as relevant and significant for the Reforms to succeed: Ports & Harbour Reform Bill 2011; Road Sector Reform Bill 2011; Inland Waterways Bill 2011; National Transport Commission Bill 2011; Railway Bill 2011; Federal Competition and Consumer Protection Bill 2011 and Nigeria Postal Bill 2011.' That the Federal Government should meet its obligations to provide access roads and security in and around the Ports in order to sustain the gains of the Ports concessions.' That the National Council on Privatisation (NCP) should rescind the Concession Agreements of Tin Can Island Port Terminal 'A' to Joseph Dam Port Services Limited, Koko Port to Greenleigh Nigeria Limited and Port Harcourt Terminal 'B' to BUA International Limited for non-performance and re-advertise the enterprises for sale' That the National Council on Privatisation (NCP) should rescind the sale of Transcorp Hilton Hotel for failure of the core investor to deliver on the following fundamental provisions of the Share Purchase Agreements/Post Acquisition Plans: Construction of a shopping mall within the Hotel grounds; construction of short/long stay serviced apartments on the available land within the hotel premises to cater for corporate and similar clients whose needs may not be met by the typical hotel service; construction of state-of-the-art office complex for short stay guests who may have need for office infrastructure outside their immediate offices and development of an amusement emporium to add to the hospitality profile of the hotel.' That the NCP should rescind the sale of Abuja International Hotels Limited (Nicon Luxury Hotel) for failure of the core investor to deliver on the following fundamental provision of the Share Purchase Agreement/Post Acquisition Plan: Invest at least, additional N2 billion to complete the furnishing of the hotel and provision of ancillary services to a five-star deluxe status within 9 months. However, after five years (from November 17, 2006 to date) the core investor has failed to comply.' That NCP should rescind the sale of Daily Times of Nigeria Plc to Folio Communication 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, which states that Folio Communications Limited, the 3rd respondent herein did not pay for the 140,252,900 shares, that is 56% shares allotted to it in DTN Plc.' That 140,252,900 shares allotted to Folio Communications Ltd have reverted to DTN PLC' That DTN PLC paid for 140,252,900 shares, that is 56% of its own shares; that Folio Communication Limited is no longer a shareholder of Daily Times of Nigeria Plc and that the current issued shares in DTN have been reduced to 93,501,936 Ordinary Shares held by DSV Ltd and 9,600 Ordinary Shares held by various shareholders' That the use of the proceeds from the sale and mortgage of DTN properties for the purchase of shares of DTN Plc is oppressive against the Petitioner and other minority shareholders in DTN Plc and a breach of fiduciary relationship.' That the debt due to Afribank Nigeria Plc in the sum of N575,696,793.61, the subject of winding up proceedings in Suit No FHC/L/CP/10112/09 is capable of being settled by the sale of the reverted shares of DTN Plc without winding up Daily Times of Nigeria Plc.' 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.' That NCP should rescind the sale of Sunti Sugar Company for non-performance and re-advertise the enterprise for sale.' That NCP should rescind the sale of Bacita Sugar Company for non-performance and re-advertise the enterprise for sale.' That NCP should involve the National Sugar Development Council, the statutory agency responsible for local sugar development in the country, in subsequent privatisation of sugar companies.' That the anti-graft agencies should work with BPE to recover the sum of 70 million pounds sterling of African Petroleum Plc looted by the former Head of Finance & Accounts, Mr. M.O. Ajayi and former treasurer, Mr. Pius C. Idigo both formerly of the company, prior to privatisation in 2011.' That the Federal Government should intervene to facilitate the renewal of the concession on the Forestry to the core investor of Nigeria Newsprint Manufacturing Company, Oku-Iboku.' That the core investor of Federal Superphosphate Fertilizer Company should build the $10 million Captive Sulphuric Acid Plant as covenanted in the Share Purchase Agreement/Post Acquisition Plans within the next three years and the Post Acquisition Plans be amended.' That BPE should implement NCP decision on Privatization Share Purchase Loan Scheme (PSPLS) to enable workers and host communities pay for shares reserved for them in privatised enterprises.' The panel was raised based on a motion moved on the floor of the Senate that the privatisation exercise was characterised by sharp practices.LAST week, after admitting that the Senate had been under tremendous pressure over the report, the Senate President, David Mark, asked the chamber to muster the courage and take the work to a logical conclusion. Therefore, the general debate on the report was concluded.The Senate, however, assured that the voting on the recommendations in the report would be conducted this week and the needful would be done.But many Nigerians are expressing skepticism and it is left for the chamber to show whether it is going to be business as usual or a fresh chapter has been opened in the conduct of affairs by the lawmakers.However, some senators took the advantage ofthe section of the report, which alleged presidential interference in the privatization exercise, to call for reprimand of former President Olusegun Obasanjo in whose administration most of the transactions were carried out.Senator Kabir Gaya (Kano South) said that the Senate had conducted similar exercises in the past and the reports ended in a trashcan.His words: 'Our major problem is not the investigation coming out with report and finding people guilty. The problem is executing recommendations. We have done that many times. We did a report on Federal Capital Territory (FCT) but there was no implementation. We also did on housing but we are yet to see the recommendations implemented.'I am worried that this is a daylight robbery where Nigerian money is being siphoned. They sold the properties of Daily Times even againstcourt injunction. We lost thousands of jobs but the revenues generated were used to give loans to same companies. No wonder, they once suggested capital punishment for corrupt officials and I think we should go back to it.'Senator Abu Ibrahim (Katsina South) said the report was comprehensive and decisive. But he expressed worry that 'the main culprit, who signed these documents, has been left out. This Senate would have been encouraged to indict such person. Such person should be reprimanded.''The Senate should be encouraged to indict the former president, Olusegun Obasanjo, for breaking these laws. He personally signed these companies off. I believe the committee on privatisation should consider those companies one by one and see if the former president is involved and he should be prosecuted,' he said.Senator Olubunmi Adetumbi (Ekiti North) told the Senate that those who issued directives during the process that had been adjudged tobe a failure should be held responsible and not the civil servants.'There is sordid information contained in this report that is codified,' he said. 'We must point really to where the issue lies. A former leader of this country, who, under oath, swore to defend the Constitution and the laws of this country, was the same person, who, in an imperial manner, took decisions to issue executive directives and approvals in contravention of the processes that are enshrined in the privatization Act, signed by himself. That is the really the thrust of this report.'The findings of this committee are revealing of the executive recklessness' The point must be made. As a representative of the people, this institution must take some decisions. The enabling environment study around the world says Nigeria is not a safe place to do contracts.'According to him, the former president presided over the prodigalsale of our commonwealth. 'In additional to this prodigal sale was an expenditure on these returns and part of the proceeds were used to finance other companies,' he said. 'It is for us to know that what we are doing here is self-censorship because we had privatization committees during those periods.'When executive directives are given to civil servants by those who appointed them, we cannot reprimand those who were given directives when the givers of these directives are not questioned.'George Thompson Sekibo (Rivers East) commended the panel for doing a thorough job. 'I commend the chairman and members of ad-hoc committee for a very brilliant work they have presented to the Senate,' he said.'My opinion is that it is a well filtered report and even though there are issues that may arise from certain areas, I still commend them.'Abdul Ningi, the Deputy Leader of the Senate, said the report offered an opportunity to trash issues that arose from the privation exercise.'This is an opportunity to answer some of the observations raised by Nigerian public and labour organisations on fears of the report not properly investigated and not implemented,' he said.'The entire privatisation scenario is a global phenomenon and a welcome development. It is saddening that the government, through the BPE, has betrayed the trust reposed in them. If we have compromised as an institution before, I can confirm that this committee did not compromise,' he submitted.Senator Smart Adeyemi (Kogi West), who also commended the panel's report, however, expressed displeasure over the manner national assets had been handled by some of the investors.'There is hope for this nation, that we still have committed and patriotic people,' he said. 'When you take a look at the report, you will conclude that privatisation is good but the way it was done was not in the interest of the people.'During the visit to the Iron and Steel Complex in Ajaokuta, the committee concluded that their operation was against national interest. Rather than improve on what they met, the investors exported the equipment to their countries. Today, we are importing steel.'This government must sum up the political will to implement the recommendations of the committee. President Jonathan must be courageous enough to implement the report. This report must not be swept under the carpet. The credibility of this government depends on how far we implement this report,' he added.Suleiman Adokwe (Nasarawa South) called on the executive to muster the courage and implement the report. He said: 'I want to emphasize that there is the need for the goodwill of the government on this report. No matter what decision we take, if the executive does not have the will to implementation the recommendations, it would amount to an exercise in futility.'We need not forget that the primary aim of embarking on commercialisation was to make them profitable. No legality should prevent us from recovering the companies if they have failed to fulfill the purpose for which they were commercialised.'I hope the government will have the courage to recover the companies where they were not put into good use.'Senator Abubakar Atiku Bagudu (Kebbi Central) called for caution in the handling of the report. 'In looking at the report, it is well detailed. I want to sound a note of caution.'In considering the report, we must not divorce the failure of companies from the general failure of firms in Nigeria. Privatisation does not imply that an organisation will succeed if what affects the general system is not corrected.'If a co-investor has bought an industry that is competing with those given waivers by government, it will not be able to achieve what it is set up to achieve. There are genuine co-investors, who have meant well but have faced difficulties, which have prevented the firms from operating successfully,' he said.Olusola Adeyeye (Osun Central) said: 'As I went through the report, I was shocked that many of the companies were performing far below expectations. In my view, if you have a company in which you invested money and year after year, you get no returns, you either take a bow or sell it to whoever is foolish enough to buy it from you.'In spite of the anger I feel, I have no problem that the company should be sold off. Year after year, we have investigations and take courage to point out what has gone wrong. We make recommendations and most times, if not all the time, the executive fails to implement the recommendations.'I pray that the Senate will have the ability to do what is right. Until we keep faith with justice and truth, unity, peace and progress will continue to elude us.'Senator Pius Ewherido (Delta Central) said:'I pray that the Senate will have the courage to see that the recommendations are implemented as passed.'The Privatization Act gave so much power to the agents to do what they want. Two Delta Steel Company (DSC) transformers were carried abroad. The committee has not told us what will happen to the looted companies. Those losses should not be permanent losses.'We should not forget the role of government ' why did these companies fail' Instead of embarking on privatization again, we should solve the problems, which led to their failure. Rail lines were a precondition for the success of steel companies.'Senate President David Mark was worried by the reservations expressed by a section of the society about the content of the report and offered the chairman of the panel to shed light on it.Consequently, Lawan submitted: 'Today is a very historic day, a day that Nigerians have waited (for) very patiently. They followed the process of investigation from day one up till this moment. The recommendations are patriotic, devoid of any sentiment and we are very dispassionate in drafting the report.'As if we knew this kind of thing would come up, the committee produced 24 video CDs. What happened in Volkswagen was televised by NTA and Nigerians saw it.'Volkswagen was bought in 2005 and for every transaction, there is a share purchase and a post-acquisition plan. The share purchase states what actions the purchaser will take and what action the government will take. Post-acquisition plan is the timetable.'In Volkswagen ' acquired in 2005 October and today is six years and a month ' they were supposed to turn around that company to produce vehicles. (But) what we saw there was a mighty complex that had massive warehouses full of vegetable oil, fertilizers imported, sugar, rice and almost 1,000 vehicles fully built. The purpose of privatising Volkswagen was completely forfeited.'There were more than 50 trucks at the time we visited the company, off-loading vegetable oil. The containers found in that yard were more than those at the Port.'On Daily Times of Nigeria, Lawan said the panel's recommendation 'was very simple and that was the judgment of the court. Let me remind this Senate ' and this is by the way ' because the core investors have failed to keep to the agreement.'Even the privatisation of Daily Times was fraudulent. This company obtained illegal approval from DG, BPE to sell houses, including that in London.'On Transcorp, Lawan said: 'In our report, it was stated what Transcorp should do within five years of privatisation. It was learnt that somebody bought Transcorp in September without investigating the assets and liabilities of the company.'The DGs of BPE ran several accounts up to eight instead of one. Even the proceeds, which they used to pay wages and settle liabilities, were not authorised. N301 billion was realised from the sales but only N146 billion was paid into proceeds account.'I want the Senate to look at these recommendations passionately.'Concluding the debate on the matter,Mark said: 'Earlier, on the sale of Daily Times, there was a letter from Daily Times, saying that the case is in court.'Let me offer a lead: we have been extremely distinguished in our work and if we don't take the recommendations today, nothing will change about our decision. But if we feel that if we don't take the recommendations today, we would be considered not strong enough, then, we should go ahead.'We commend your patriotism. We all went through a lot of pressure and I pray that we remain patriotic and focused and that our emphases are on the fact before us and we don't bring in partisan politics on the journey we started so that we don't derail.
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