Privatisation: Senate indicts BPE, El-Rufai, Chigbue, Onagoruwa.

The Senate Ad hoc Committee on Privatisation has indicted former Directors-General of the Bureau of Public Enterprises for their roles in the sale of Federal Government enterprises from 1999 to date.

The former BPE bosses, namely Dr. Julius Bala, Mallam Nasir El-Rufai and Mrs. Irene Chigbue were recommended for reprimand by the committee for seeking approval directly from the President on the sale of the companies instead of differing to the National Council on Privatisation as required by the Public Enterprises Act 1999.

However, the current BPE boss, Ms Bolanle Onagoruwa, was recommended for removal for "gross incompetence in the management of the BPE and for the illegal and fraudulent sale of the five per cent Federal Government of Nigeria’s residual shares in Eleme Petrochemicals Company Limited."

The report of the committee, submitted to the Senate on Tuesday, also asks the Economic and Financial Crimes Commission to investigate some of the illegalities allegedly perpetrated by the BPE officials.

The report says, "That the former Directors-General, Mallam Nasir el-Rufai, Dr. Julius Bala and Mrs Irene Nkechi Chigbue should be reprimanded by the NCP 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 and 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."

The committee also recommended the revocation of the sale of the some of the agencies sold by the BPE on the grounds that they violated the stipulated rules for the privatisation of the enterprises.

Its report says, "That the National Council on Privatisation 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.

"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.

"That the National Council on Privatisation 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 should rescind the sale of ALSCON to Dayson Holdings BV and re-advertise for sale.

"That the National Council on Privatisation should rescind the sale of Delta Steel Company to Global Infrastructure Holdings Limited and Global Infrastructure Nigeria Limited and re-advertise for sale."

The report notes that the sale of Daily Times Nigeria Plc assets by Folio Communications Limited and its Directors should be investigated by anti-graft agencies, adding that the sold assets should be recovered.

It also recommends that the NCP should rescind the sale of Sunti Sugar Company and Bacita Sugar Company for non-performance and re-advertise the enterprise for sale.

Also, the NCP is asked to involve the National Sugar Development Council, the statutory agency responsible for local sugar development in the country, in subsequent privatisation of sugar companies.

The committee also said that the anti-graft agencies should work with the BPE to recover the sum of 70million pounds sterling of African Petroleum Plc looted by a former Head of Finance & Accounts and a former treasurer of the company.

The report says, "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 National Council on Privatisation should set-up an NCP Sub-committee to oversight Post Privatisation Monitoring activities of BPE."