The Nation Newspaper

Tag: BPE

  • BPE tasks FGN, EPDC on power supply

    BPE tasks FGN, EPDC on power supply

    The Bureau for Public Enterprise (BPE) has tasked the federal government and Electricity Power Distribution Companies to adhere strictly to the terms of agreement on privatisation in the interest of Nigerians.

    The bureau said both parties must strive to meet up its obligations as stipulated in the sales agreement during the privatisation of the power sector to enable citizens enjoy steady power supply.

    Deputy Director, Electric Power Department of the Bureau, Amaechi Aloke, stated this in Jos, the Plateau State capital, during a surveillance visit to the Jos Electricity Distribution Company (JED)

    Aloke said: “The surveillance visit was part of the monitoring of activities of the company and to ensure compliance with sales agreement. The exercise was the first major comprehensive monitoring we are undertaking apart from the initial surveillance done after the first six months of the transaction.

    “Our duty is to enforce and make sure that both parties fulfill their obligations. The agreement says that if they do not fulfill their obligations, we can take back the company.  On the other part, if the government refuses to do what is expected from them and frustrate them out of the business, they can return the company back to government and will get their money back and get 100 percent return as penalty.

    “But beyond that, we are more interested in making sure the electricity consumers are not disappointed in the transaction, the consumer deserves improved power supply and nothing else.

    “Both parties have motivations to make the transactions succeed.  Financial institutions are willing to support the business; all they need is the signal that the industry is viable, and money invested in it will be recovered.

    “The new owners have made specific commitment known as performance agreement. The agreement specified what they should do within the period of five years broken down into annual target for them to meet and include metering program and building platform.”

  • BPE: paucity of funds stalls investment in meters, others

    BPE: paucity of funds stalls investment in meters, others

    The Bureau of Public Enterprises (BPE) has said the scarcity of meters and transformers in the electricity industry, is due to inadequate investment in infrastructure in the power sector.

    The Director-General of BPE, Benjamin Dikki stated this while clarifying allegations that the scarcity was politically motivated. He said the scarcity of meters and transformers in the nation’s electricity industry was as a result of low investment in infrastructure, and not politically motivated.

    According to him, investment in meters, transformers and other power components requires billions of dollars, and investors are not ready to invest in them because of paucity of funds.

    He also said it would be wrong for anyone to conclude that some Nigerians are preventing more meter companies to operate in the country because they are importing meters and other electricity equipment. The problem was caused by funds, he added.

    Dikki said: BPE has been appealing to investors to establish companies that manufacture meters, transformers, and other critical components in the country, having discovered that Nigerians are spending huge amount of money to bring those equipment into the country. We have appealed to investors at local and international fora that there are investment opportunities in Nigeria. In spite of the appeals, people are still not ready to invest substantially in power components.”

    Dikki told The Nation, that the demands of consumers of electricity are far from being met. He said demand for infrastructure has outstripped supply. “Opportunities abound in the area of setting up companies for the production of equipment such as cables, smartcards, meter readers, and other components. Yet people have not explored the potentials in the industry to the fullest, due to one problem or the other,” he added.

    He regretted that the few existing meter manufacturing firms in the country are not meeting the needs of consumers because the infrastructure gap is widening. According to him, the BPE has discussed with financial institutions on the need to help in reducing scarcity of meters and transformers in the country by supporting manufacturing firms with funds.

  • Row over legal fee: Gadzama denies collecting N950m from BPE

    •SAN says ex-AGF knew about contract award 

    A Senior Advocate of Nigeria, Joe Kyari Gadzama, yesterday said his law firm did not collect N950 million from the Bureau of Public Enterprises (BPE) as legal fee for the liquidation of the Power Holding Company of Nigeria (PHCN).

    He insisted that the contract was awarded following due process and approved by ex-President Goodluck Jonathan.

    Gadzama said the former Attorney-General of the Federation, Mr. Mohammed Bello Adoke (SAN), was a member of the National Council on Privatisation (NCP), which ratified the award of the contract.

    He added that the fact that he had handled some briefs  for the Peoples Democratic Party (PDP) had nothing to do with the award of the contract to his firm by the BPE during the administration of the ex-president. Gadzama made the clarifications in a letter to the Managing Director and Editor-In-Chief of Vintage Press Limited against the backdrop of The Nation running stories on the award of the N1.45 billion contract by BPE.

    The Bureau of Public Procurement (BPP) had said it raised objection to the award of the contract.

    In a June 27 letter to EFCC, the BPP requested the anti-graft commission to investigate the circumstances surrounding the award of the contract. In some documents submitted to EFCC, the BPE however insisted that the legal contract was valid because ex-President Jonathan approved it based on a memo from ex-Vice President Namadi Sambo, who was the chairman of the National Council on Privatisation (NCP).

    It also said sections II (J) and 55 of the Public Enterprises (Privatisation and Commercialisation) Act Cap. P.38, LFN 2004 exempts NCP from complying with the processes of BPP.

    Breaking his silence, Gadzama said it was wrong to conclude that he or his firm was involved in any scandal.

    He faulted some stories claiming that he had been paid N950 million.

    His letter reads: “If you had taken such steps to verify, you would have learned the obvious truth that no such money has been paid out by the BPE  to any lawyer, for the winding up for PHCN  or at all. Not even the N950 million, which you falsely alleged on Page 4, has been paid to any lawyer.

    “If you had bothered to verify, you would have realised that the full and formal winding up of the PHCN was consistent with the Federal Government’s power sector reform policy.

    “The contract itself was awarded following due process. It was approved by the appropriate authority and signed off on by the President of the Federal Republic. Even the Hon. Attorney-General of the Federation, whom your story repeatedly mentioned as kicking against the contract, was a member of the council and present at the meeting where the contract was awarded.

    “All these facts are well-documented and independently verifiable. That you did not care to verify strongly suggests you may have had some motives behind your decision to publish.

    “And those motives clearly had nothing to do with commenting fairly, truthfully and responsibly on matters of public interest. This is not acceptable in the slightest.

    “You have not mentioned our name, but the innuendo is there, and your meaning is quite clear. While you are free to inform on matters of public interest, you have no right whatsoever to publish statements that are false and misleading and which have the purpose or effect of lowering another in the estimation of right thinking members of society.”

    Gadzama said handling some cases for PDP had nothing to do with the award of the legal contract.

    The letter added: “What did you have in mind by using the phrase “PDP lawyer”. What role did you discover PDP has to play in the award of the contract?

    “The question remains, did your organisation take any steps at all to independently verify the nature of the contract in issue, or the considerations that led to its formulation, or the steps and procedure by which it was concluded and awarded? It appears you did not.”

    The BPP earlier claimed that the AGF did not at any time withdraw his “No Objection”.

    Its Director-General, Emeka M. Ezeh, an engineer, said in a letter to BPE as follows: “The HAGF’s position on this procurement clearly indicates that Legal Advisory Service is not needed as all constituent items (1-9) under unnecessary as listed by the HAGF constitute all items under the Legal Advisory Service, as such; no item is left for BPP’s consideration for a further review.

    “Moreover, the HAGF in his conclusion further stressed that, ‘I am to reiterate my earlier opinion that the proposed engagement of consultants for provision of Legal Advisory Services for the Liquidation of PHCN and Valuation of PHCN’s Non-Core Headquarters Assets is inconsistent with the provisions and spirit of the EPSR Act and the proposed agreement to this effect should not be executed by the parties’. This is the conclusion of the HAGF letter, contrary to BPE’s agitation for a revised scope of work.

    “The BPP wishes to further draw the attention of the BPE to Paragraph 2(v) (i) of the Minutes of Meeting between the BPP and the BPE on engament of advisers for the Winding up of PHCN, Procurement for selection of consultants for training and counseling of old employees of PHCN and Extension of CPSC Transcom International Ltd (BPE’S adviser for the Privatisation of PHCN Successor Companies) held on Thursday, September 11, 2014 at the BPP Conference Room, wherein, a conclusion was reached that; the BPP will consider reversing its decision on the procurement under reference only when further instruction from the AGF nullifying the earlier directive is received. The conclusion reached in the meeting was consented to by both parties (BPP and BPE), and was in line with the AGF’s letter to the Bureau. Copy of Minutes of Meeting attached herewith please.

    “The BPP wishes to state at the moment, no instruction is received from the AGF nullifying the earlier directive. The BPP is, therefore, constrained by the directive of the HAGF, hence cannot reverse the earlier verdict. “In view of the foregoing, “No Objection” cannot be granted to the BPE to carry out renegotiation with Messrs. J-K Gadzama for Legal Advisory Services for the Winding up of PHCN.”

  • EFCC probes how BPE paid N1.45b to PDP’s lawyer, others

    EFCC probes how BPE paid N1.45b to PDP’s lawyer, others

    Anti-graft agency to quiz BPE chiefs over legal, consultancy fees

    Anti-graft detectives are probing the alleged N1.45 billion legal and consultancy fees scandal at the Bureau of Public Enterprises (BPE).

    The Bureau of Public Procurement (BPP) called in the Economic and Financial Crimes Commission (EFCC).

    Of the cash, N950 million was paid to one of the lawyers of the Peoples Democratic Party (PDP) for the liquidation of the Power Holding Company of Nigeria (PHCN) when the company had ceased to exist. A N500 million consultancy fee went to the Office of the Accountant-General of the Federation.

    The fees were paid contrary to the advice of the immediate past Attorney-General of the Federation, Mr. Mohammed Bello Adoke (SAN), and BPP.

    The BPP requested the EFCC to investigate the payment scandal in a June 27 letter to the anti-graft agency.

    A source, who spoke in confidence, said: “We have submitted a letter to the EFCC to look into the circumstances behind the payment of legal and consultancy fees. It is left to the anti-graft agency to interact with those involved.

    “We had in a September 22, 2014 letter, told the BPE that Due Process Certificate of ‘No Objection’ cannot be granted to the Bureau of Public Enterprises for the appointment of the legal firm.

    ”We also drew the attention of the Director-General of BPE to Section 12.30 of the revised Review Report for consideration and necessary action.

    “In another letter on December 24, 2014, the BPP advised the BPE against going ahead with the procurement of the legal service for the winding up of PHCN.

    “The Legal Advisory Services for the winding up of PHCN was no longer required, based on the advice of the Attorney General of the Federation and Minister of Justice vides September 11, 2014 letter.

    “It was surprising to the BPP that the BPE went ahead to pay about N1billion to a lawyer without following Due Process.”

    As at press time, it was gathered that some top officials of the BPE might be invited for interrogation on the curious legal fee.

    An EFCC source said the agency has launched an investigation.

    “We are going to interact with some officials of the BPE after preliminary investigation has been concluded,” the source said.

    The Director-General, Mr. Emeka M. Ezeh, said in a letter that no instruction was received from the AGF nullifying the earlier directive.

    The letter said: “The Bureau of Public Procurement (BPP) having examined the request, wishes to draw the attention of the BPE to Paragraph 14 of the Honourable Attorney-General of the Federation (HAGF)’s letter to the BPP referenced that “item 1,3,5,6 and 8 of the scope of work for the Legal Advisor unnecessary for the liquidation of the PHCN.

    “Similarly, any of the remaining items 2,4,7 and 9, which is not contemplated by the procedure described in Sections 457 -468 (and there is hardly any contemplated) would equally be unnecessary to accomplish the liquidation”.

    “ It can be deduced from the above citation that the HAGF’s position on this procurement clearly indicates that Legal Advisory Service is not needed as all constituent items (1-9) under unnecessary as listed by the HAGF constitute all items under the Legal Advisory Service, as such; no item is left for BPP’s consideration for a further review.”

     

  • BPE in N1.45b scam

    BPE in N1.45b scam

    A row has broken out in the Bureau of Public Enterprises (BPE) over the payment of N1.45billion legal and consultancy fees by the management.

    A lawyer got paid N950million for the liquidation of the Power Holding Company of Nigeria (PHCN) when the company had ceased to exist and  the Office of the Accountant-General of the Federation got N500 million for consultancy.

    The fees were paid contrary to the advice of the immediate past Attorney-General of the Federation, Mr. Mohammed Bello Adoke (SAN) and the Bureau of Public Procurement (BPP), The Nation learnt.

    Also, top directors of the BPE have been implicated in a job racket after 60 hands were hired a few days to the exit of the administration of ex-President Goodluck Jonathan.

    Most of the workers were said to be the children and relatives of the directors, contrary to the ethics of the agency.

    The pioneer chairman of BPE, the late Hamzat Zayyad, put a code of conduct which forbids any employee from hiring his or her relations in the agency.

    Investigation by our correspondent revealed that the curious legal fee of N950million was paid after a meeting of the National Council on Privatisation (NCP) was hurriedly convened by ex-Vice President Namadi Sambo on April 18.

    At the session, it was learnt that the NCP members were deceived into believing that the former AGF and the Bureau of Public Procurement  (BPP) had withdrawn their letters of objection to the payment of the N950million.

    A source said: “There is disquiet in BPE over the payment of N950million to a PDP lawyer to wind down PHCN. The payment was just unnecessary because the liquidation of the PHCN had been concluded since 2013. So, it was shocking to some members of the management that such a curious huge bill came for no service provided in 2015. We suspected that the payment was a slush fund to offset campaign expenses.

    “By the Power Sector Reform Act of 2005, the Federal Government had unbundled the National Electric Power Authority into 11 distribution companies and six generation firms. These were the companies we privatised in 2013. The PHCN then ceased to exist. There was no formal need to wind down PHCN in 2015 to the extent of paying N950million.”

    A source in the Ministry of Justice said: “By our records, the former AGF opposed the payment of the N950million as legal fees to the said lawyer because the liquidation of PHCN had long been completed.

    “Even the ex-AGF said assuming that the NCP was talking of nominal liquidation, the accruing legal fees ought not to be more than N50million.

    “The records are there for the administration of President Muhammadu Buhari to examine all the correspondences.”

    As the BPE was trying to wriggle itself out of the legal fee scandal, two fresh issues have caused tension in the agency.

    It was learnt that the management was shocked that another N500million was paid to the Office of the Accountant-General of the Federation for “consultancy service.”

    “They told us that the N500million was approved by NCP as consultancy payment to the Office of the Accountant-General of the Federation. There was no specific consultancy job given to the OAGF,” a director added.

    It was also learnt that about 60 workers, mostly relations of the top directors in BPE, were recruited three weeks to the end of Jonathan’s administration.

    The source said: “Out of the 60 new workers, 22 who had been casual workers for five years were retained when even there is no provision for casual jobs in BPE.

    “The directors shared the appointments without recourse to the Federal Character Principle. For instance, one brought his daughter, four also employed their children and another engaged his ‘wife’ or mother of his children.”

  • NLC scores BPE below 10%

    The factional President, Nigeria Labour Congress (NLC), Comrade Joe Ajaero has scored the Bureau for Public Enterprises (BPE) below 10 per cent in performance on the premise that most of the companies the agency privatised are now moribund.

    He advised the in-coming government of Gen Muhammadu Buhari (rtd) to review the activities of the agency with a view to ensuring that the interest of workers are properly taken care of before embarking on privatisation.

    Comrade Ajaero made this remark at the end of the Central Working Committee meeting of the congress held Lagos.

    According to a communiqué issued at the end of the meeting, the congress resolved to develop a blue print on how to achieve steady electricity supply, adding that there should be a road map on how many megawatts of electricity should be generated yearly over a period of time.

    The congress reaffirmed its commitment to the unity of the labour movement in Nigeria based on the principles of trade union independence, fairness, strong internal democracy, equity, solidarity, gender balance and justice.

    Members of the CWC also reiterated their commitment to genuine dialogue with an independent reconciliation committee to be constituted by labour veterans and civil society leaders with a view to addressing the current challenges facing the congress.

    Ajaero enjoined the government to focus on expanding the frontier for job creation through value added activities in agriculture and manufacturing.

    “The president-elect must muster the political will to confront the hydra headed challenge of smuggling, electricity failure, faking and counterfeiting of made-in-Nigeria goods.

    “We demand special attention to address the challenge of electricity supply in the country and in particular in the immediate term accelerated solution for industrial power needs,” he said.

    He pointed out that once power needs of industries are addressed and the new government is able to create stability in the micro-economic environment, the power prospect for expanded industrial development and job creation is huge.

    He also urged the in-coming administration to address income inequality and widening gap between the poor and the rich through wage improvements and progressive tax administration, even as the minimum wage committee was mandated to develop and send a proposal to the Federal Government and the transition committee.

  • BPE to commence fresh privatisation of Ajaokuta

    BPE to commence fresh privatisation of Ajaokuta

    The Director General, Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki has said the Federal Government will soon commence another process to privatise the Ajaokuta Steel Company Limited (ASCL).

    A statement endorsed by its Head, Public Communication, Chigbo Anichebe said  Dikki spoke during a breakfast programme on Independent Television (ITV)-This Morning.  He said  the Federal Government was exploring an amicable resolution of all encumbrances with the core investor of ASCL-Global Infrastructure Nigeria Limited (GINL) at arbitration and once that was done, the privatisation process would commence.

    He said the Federal Ministry of Justice was driving the process which was making steady progress and “once the issues are resolved, Ajaokuta Steel Company Limited will be handed over to the Federal Government and we will begin another process of privatisation.”

    Dikki explained that when the issues are resolved, the National Iron Ore Mining Company (NIOMCO) would be jointly owned by the Federal Government and the Global Infrastructure Holding Limited (GINL).

  • Eight bills will impact on economy, says BPE

    Eight bills will impact on economy, says BPE

    The Bureau of Public Enterprises (BPE) has said the  quickly passage of its  eight  bills into law by the National Assembly would have a positive impact on the Nigerian economy.

    The Director-General,  Benjamin Dikki  applauded the Federal Executive council for hastening the transmission of the eight reform bills to the National Assembly for passage.

    BPE’s Head, Public Communications, Chigbo Anichebe,  In a statement  listed the bills as;  Railway Bill, Inland Waterways Bill, Ports and Harbour Bill, Federal Roads Authority Bill, National Roads Fund Bill, National Transport Commission Bill, Competition and Consumer Protection Bill and Postal Sector Reform Bill.

    While exchanging views about the reforms bill during donor agencies coordination meeting on infrastructure and Public Private Partnership (PPP) with the Nigeria Regional Office of the African Development Bank (AFDB) Group in Abuja on Monday, Dikki,  expressed the hope that with the necessary stakeholders’ engagement, the Bills would be passed within the current legislative year.

    He said the purpose of the Bills among others, include the abrogation of existing monopoly laws and to liberalise the various sectors to allow private sector participation, ensure a conducive business climate to encourage private investment, promote competition and institute a sound legal and regulatory framework that would ensure independent regulation.

  • BPE to partner stakeholders for passage of bills

    BPE to partner stakeholders for passage of bills

    The Bureau of Public Enterprises (BPE) has said that it is prepared to collaborate with all relevant stakeholders for the early passage of Federal Competition and Consumer Protection (Anti-Trust) Bill.

    This was contained in a press statement issued yesterday by the BPE’s Acting Head, Public Communications, Alex Okoh. The Bill is among the eight approved by the Federal Executive Council (FEC) last Wednesday for onward transmission to the National Assembly for passage. The other Bills are: the National Transport Commission Bill (2015); ýNational Roads Fund Bill; ýFederal ýRoads Authority Bill; Nigeria Ports and Harbour Authority Bill (2015); ýNational Inland Waterways Authority Bill (2015) and the Nigeria Railway Authority Bill (2015).ý

    BPE’s Director General (DG),Mr. Benjamin Ezra Dikki, while receiving the DG of the Consumer Protection Council (CPC), Mrs. Catherine Dupe Atoki in his office last Tuesday, said an interagency Project Delivery Team (PDT) would soon be set up to achieve the goal.

    He said the PDT which will be led by the Ministry of Industry, Trade & Investment would have other relevant ministries and government agencies.

    Dikki disclosed that the Bureau had already drawn up a roadmap, specifying the role each stakeholder would play and said it would recommend to government that CPC formed the nucleus of the agency that would emerge as a regulator in the sector, similar to the role the Shippers Council is playing in Ports regulation.

  • Why BPE wants to privatise NIGCOMSAT, by Dikki

    The Director General of the Bureau of Public Enterprises (BPE), Benjamin Ezra Dikki, has said  the Federal Government is seeking to privatise the Nigeria Communication Satellite Limited (NIGCOMSAT) due to the  need to inject entrepreneurial spirit into the company and make it more commercially viable.

    He said the Information and Communications Technology that encompasses satellite systems and telecommunications is key to the growth of any nation.

    Dikki, spoke in Abuja, while receiving the Management Team of the National Space Research and Development Agency (NASRDA) led by its Director General, Prof. Seidu Mohammed.

    BPE Acting Head, Public Communications, Alex Okoh, in a statement, quoted Dikki as assuring that  in privatising NIGCOMSAT, the security of the nation would not be compromised, but that the Bureau would strategise and evaluate how much private sector participation would be required in the company to drive growth.

    The said BPE would rely on informed guidance from key stakeholders to determine the model of privatisation to be recommended to the National Council on Privatisation (NCP) for adoption in the privatisation of NIGCOMSAT.

    He said in executing the transaction, a Joint Project Delivery Team (PDT), comprising the BPE, the Ministry of Communication Technology, NASRDA and other key stakeholders would be instituted for the purpose.

    Prof. Mohammed on his part, said the purpose of the visit was to intimate the BPE of the activities of the agency and to seek more clarification on the planned privatisation of the NIGCOMSAT.

    He said that there was need for a communication satellite for all Nigerians as it is vital, not only for telecommunications, but for earth characterisation to support the agricultural sector of the country. He lamented the poor funding of the science and technology sector of the country and called for more investment in the sector to boost the competitiveness of Nigeria.