RECENT investigations and the subsequent indictment of the former and present Directors-General of the Bureau of Privatisation of Public Enterprises (BPE) by the Senate Ad Hoc Committee on Privatisation have brought to the open, deep-rooted corruption and many unethical dealings. The investigation revealed the extent to which public servants charged with the process of privatisation of government owned companies colluded with buyers to sell off public enterprises without following due process and at give-away prices.A report by the Ad Hoc Committee said the former Directors-General should be reprimanded by the National Council on Privatisation (NCP) for seeking approval directly from former President Olusegun Obasanjo when in office rather than from the NCP as stipulated in the Public Enterprises Act of 1999.The Report also faulted the sale of Daily Times of Nigeria, the sale of the residual shares of Eleme Petrochemicals Company Limited; called for the revocation of the sales of both Transcorp Hilton Hotel and Abuja International Hotels Limited. It also called for the cancellation, for reason of poor performance, of the concession 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. In essence, the Report exposes some of the corrupt practices that characterised the privatisation of government enterprises in the country. It also highlights how officials of BPE by-passed due diligence during the sell-off process. In all, the investigation by the Ad Hoc Committee shows how good economic initiatives are ruined by personal interests and political interference.We believe that in getting to the root of the matter, there are other issues which the Senate must raise during the debate the Report. For instance, why did all the Directors- General from 1999 to date, seek approvals directly from the President thereby contravening the Privatisation Act. The debate should question why the sale of Eleme Petrochemicals Company Limited to Indorama Ltd, was not reversed following the buyer's refusal to fulfil its promise to expand the operations of the company by building another plant there, within the first year of purchase. In other cases, buyers of the privatised companies rather than putting the companies into operation, embarked upon unbridled asset-stripping of the companies procured. The Ajaokuta Steel Complex and the Daily Times of Nigeria Plc are cases in point. The Sales and Purchase Agreements of privatised companies provided for the revocation of sale, in case of nonperformance and asset-stripping by buyers. Public enterprises bought under in unethical manners must be retrieved and put up for sale to new buyers following due process. As the debate gets underway in the Senate, public officials who collaborated with buyers of government-owned enterprises to rip-off Nigeria should be publicly identified, prosecuted and adequately punished. By cleansing BPE of corrupt processes, good and transparent models must be institutionalised as examples to emulate. A stream of monitoring mechanisms for instance, would be useful to proactively ensure that the process is strictly followed to eradicate any opportunity for future corrupt practices.The outcome of the ongoing investigation and public hearing on the privatisation process in the Senate is crucial in the fight against abuse of office and corruption in the public service of the country.
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