Senate rolls back OBJ Privatization........

The Senate on Tuesday asked the Federal Government to cancel key sales of public enterprises executed during the regime of president Olusegun Obasanjo over alleged breach of due process and failure of the core investors to meet their obligations.

Also, the Senate asked President Jonathan to fire the director-general of the Bureau for Public Enterprises Bolanle Onagoruwa, and the security agencies to prosecute former heads of BPE Nasir el-Rufai, Julius Bala and Irene Chigbue over their roles in faulty privatisation processes.
These resolutions were passed when the Senate voted to adopt the report of a committee that investigated the privatisation process since 1999.

Privatised companies that the Senate want seized back from their present owners are NICON Luxury Hotel, Transcorp Hilton Hotel, Sheraton Hotel and Towers Abuja, Daily Times Nigeria, Delta Steel Company, Aluminium Smelter Company of Nigeria, Bacita Sugar Company, Sunti Sugar Company and Volks Wagon Nigeria.

The Senate said the sale agreement on Transcorp Hilton should be revoked due to failure of the core investor to deliver on the “fundamental provisions of the share purchase agreement and post acquisition plans.”

Regarding the sale of Daily Times of Nigeria to Folio Communication, it said the buyer failed to pay for the 56 per cent share of the company. “The sale of assets of Daily Times Nigeria Plc by Folio communications Limited and its directors should be investigates by anti-graft agencies and the sold assets recovered,” the resolution said.

On NICON Luxury, which was sold to Mr Jimoh Ibrahim, the Senate said it should be revoked for the failure of the core investor to inject at least additional N2 billion into the company for the furnishing of the hotel to a five-star hotel.

Ibrahim is to refund N900 million with interest, in another deal on the purchase of NICON Insurance as money paid by the BPE as contribution for recapitalisation.

On the sale of Volks Wagon to VON Automobile, the Senate said, “EFCC should be immediately drafted to investigate the economic crimes being perpetrated against the nation at VON Automobile Nigeria Limited Premises in Lagos by Berbedos Ventures Limited (BVI).”

The sales of Sheraton Hotel, Delta Steel Company to Global Infrastructure Holding, ALSCON to Dayson Holding BV, Bacita Sugar Company and Sunti Sugar Company are to be revoked for non-performance of the core investors.

Similarly, the BPE has is to source for N2.7billion to settle all outstanding staff liabilities in ALSCON, another N5.2 billion to pay Delta steel company and N73 million for the Federal Superphosphate Fertilizer Company.

While considering the committees reports, the Senate found that Obasanjo encouraged officials of the BPE to side line the National Council on Privatization (NCP) which is the body established by law to supervise the process. NCP was then headed by Obasanjo’s estranged deputy Atiku Abubakar. The Senate recommended that all the former BPE heads should be reprimanded for side lining the NCP, but did not recommend any punitive action against Obasanjo.

The Senate asked President Jonathan to sack BPE boss Onagoruwa for “gross incompetence in management of the BPE and for illegal and fraudulent sale of 5 percent Federal Government residual shares in Eleme Petrochemical Company Limited (EPCL).”

The Senate asked anti-graft agencies to investigate Julius Bala for “giving approval to Folio Communication Limited for the illegal sale of assets of Daily Times Nigeria Plc.”

Other decisions taken by the Senate include asking government to rescind the concession agreement of Tin can Island Port Terminal A to Joseph Dam Ports 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.”

The Senate said the BPE should be reorganised while “Presidential interference in the privatisation process should be avoided in future.”

Speaking after the Senate adopted all the 45 recommendations by the committee, Senate President David Mark said the ball was now in the court of the Executive to implement the recommendations, saying “we have no power to implement; it is now left to the executive to implement our recommendations.”

The Constitution empowers the National Assembly to conduct investigations for the purpose of exposing corruption but the Executive arm reserves power of implementing any recommendations made by the legislature.

This is changing the hands of time.....