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  • Ex PHCN, NEPA workers seek payment of benefits, severance packages

    Ex PHCN, NEPA workers seek payment of benefits, severance packages

    Some former staff of the defunct National Electric Power Authority (NEPA) and Power Holding Company of Nigeria (PHCN) have lamented the hardship they are facing due to their withheld benefits and severance packages by Federal Government through the Bureau of Public Enterprise (BPE).

    The affected staff, who were laid off in 2013, demanded payment of all their benefits and severance packages through implementation of report of a committee headed by erstwhile labour leader, Hassan Sunmonu.

    Speaking in Ibadan on behalf of of the affected staff, Olusegun Iyanda said the benefits include ten percent equity share of power industry to every employees, pre retirement training within and outside the country which was said to be monetised, contributory pension, insurance and other things as recommended by the Sumonu’s report.

    He stated that all they want is for BPE, which is charged with overall responsibility of implementing Nigerian policy on privatisation and commercialisation to pay everything as listed in the Sumonu’s report without coercion or intimidation.

    He said: “Our employment was terminated in 2013 based on some policy, everybody were asked to go, before then, a committee headed by the erstwhile labour leader, Sumonu was set up to plan for our retirements, benefits and severance packages, at the end of the day, part payment of our benefits was paid to us having in mind that they will pay the remaining later.

    “We later found out that rather than paying all that supposed to paid to us, they came out with a form last year that they want to pay, but the amount they wanted to pay was very ridiculous, the form indicated that once we signed it, we are saying government didn’t own us anything again aside the stipend they wanted to pay us.

    Read Also: PHCN pensioners on special salary structure, says PTAD

    “The form also indicated that signing it mean we agree on resolutions of our union and BPE, so, how can we agree on a resolutions to a meeting we are not party to? we are no longer in service, we don’t need the union.

    “The union deducted two percent from the part payment paid to us, the money was above eight billion, it was shared by the union, and they still intend to deduct another two percent again.

    “Some have agreed to take the ridiculous money, but those of us who refused to take the money formed a group and called it resolute group.”

  • Reps move to curb excessive electricity charges 

    The Ad-Hoc Committee to curb Excessive Electricity Charges being levied on consumers by distribution companies (Discos) Thursday said it would meet with community development associations (CDAs) in different geo-political zones in the course of its assignment.

    Chairman of committee, Hon. Ajibola Famurewa (APC Osun) who made the declaration at the inaugural meeting of the committee, noted that majority of Nigerians are suffering under the arbitrary charges for electricity from the distribution companies.

    The committee was given the mandate by the House to determine the differences between the prepaid meters installed by PHCN and the MOJEC prepaid meters by DISCOs as well as determine the costing algorithm used by NERC in arriving at the consumers price.

    The committee is to ascertain the average cost of electricity in West African sub region vis-a-vis Nigeria.

    Its mandate also include finding out why DISCOs have not complied with the deadline of March 1, 2017 in phasing out estimated billing system.

    According to the Chairman of the committee, relevant organizations and agencies to the investigation include Federal Ministry of Power, Works and Housing, the Central Bank of Nigeria, CBN, the Consumer Protection Council, Nigerian Electricity Regulatory Commission (NERC), Nigerian Bulk Electricity Trading Company (NIBET), Transmission Company of Nigeria.

    Others are: Electricity Distribution Companies of Nigeria (DISCOs), Nigeria Labour Congress, Association of Nigerians Electricity Consumers amongst others.

    Famurewa said there would be zonal interactive sessions with electricity consumers in a bid to understand the scope of the problem.

    According to him, the committee will try to meet the six (6) weeks given as deadline by the House.

    This, he said, is to allow the House take a timely decision on the issue  to ease the suffering of the people.

    Read Also: Reps vow to unravel alleged rape cases in IDP camps

  • Reps to probe alleged loss of N2bn, $3.8m interests from sale of PHCN

    Reps to probe alleged loss of N2bn, $3.8m interests from sale of PHCN

    The House of Representatives is to investigate the alleged loss of two billion naira and 3.8 million dollars through banks’ non-payment of interests on the proceeds of the sale of PHCN successor companies.

    The decision followed the unanimous adoption of a motion by Rep. Chukwuka Onyema ( Anambra-PDP ) at the plenary on Tuesday.

    The session was presided over by the Speaker, Mr Yakubu Dogara.

    The house resolved to set up an ad hoc committee to carry out the probe and to report back to the house within six weeks for further legislative action.

    Onyema had said that the Electric Power Sector Reform Act of 2005 unbundled the Power Holding Company of Nigeria (PHCN) into 18 successor companies.

    He said the companies were six generation companies, and 12 distribution companies covering the 36 states of the federation as well as National Power Transmission Company.

    Onyema said following the divestiture of Federal Government from PHCN through privatisation, the company was divided into separate companies known as the Local Electricity Distribution Companies.

    He said the successor companies made payment to the Federal Government through Standard Chartered Bank, Fidelity Bank, Stanbic IBTC, Access Bank, FCMB, Skye Bank, Sterling Bank, Zenith Bank and Unity Bank.

    “The accrued interests due to the Federal Government to the tune of two billion naira and 3.8 million dollars were alleged to have been diverted by those banks in collaboration with officials of the Central Bank of Nigeria,’’ Onyema said.

    He pointed out that the Nigerian Constitution empowers the House to conduct investigations for the purpose of exposing corruption, inefficiency or waste in the execution or administration of laws and management of funds.

    NAN

  • PHCN privatization and irony of expectations

    SIR: When the immediate past administration concluded the privatization project that began with 2005 power sector reform, many Nigerians were happy hoping that the era of darkness was finally over. These supposed halcyon days ending ugly dark past were to begin in 2013, with the formal handover of public power supply companies to private owners. Even though no one bothered to check the performance of other public corporations previously privatized, everyone was tired of the tyranny of government’s monopoly of inefficient electricity companies. The emergence of private managers was seen as the much needed panacea that would end the perennial darkness that was plaguing the country.

    But four years on, Nigerians feel short-changed. If the rationale for privatization is for increased efficiency and productivity, then those who foisted this scam on Nigerians did not mean well for the country. The unfolding electricity situation have left Nigerians wondering if the former regime of the defunct Power Holding Company was not better. In fact others have even clamoured for NEPA to return.

    It is now in the public domain that Goodluck Jonathan’s led government bequeathed the nation’s power assets to people who neither have expertise in the industry nor financial capacities, thus plunging the country into darkness. They were driven by greed to maximize profits; the desire to improve power supply situation was never in their agenda. They are opportunists who came to harvest and not to invest. Judging from the way they hurried to take over the business with no sufficient time for feasibility study, it was clear that they lacked what it takes to function in the electric power sector. They appeared desperate and hence always asking how much they were going to earn monthly and did not bother about what to inject into the system.

    To the extent that the sector is still bedevilled by obsolete power infrastructures, weak power lines, insufficient distribution transformers and myriads of other sundry inadequacies, the hope of stability of power supply remains a mirage. True investors are patient and would nurture the system until it matures. The new managers of this power regime lack experience, expertise, patience and patriotism needed in an electricity sector.

    Today, Nigerians are made to pay for inefficiency and inexperience of the new owners of the power industry. They pay for electricity which they did not consume and efforts to supply meters to electricity customers are frustrated by the so-called investors. They do this purposely so that crazy bills would continue to be issued to hapless customers. A cost reflective bill which is based on actual consumption means bad business to them, since estimated bill is what sustains their enterprise.

    Nigerians have justifiably concluded that the immediate past government sold off the nation’s power assets to themselves and their cronies. What is surprising is why President Buhari has not responded to the cries of the exploited and traumatized Nigerians.

    Nigerians continue to wonder if stable power supply would still form 2019 campaign promises again. Government should stop following the 2005 electricity road map as it leads to no way. With the present crop of electricity providers, whatever amount the government sinks into the sector would surely go down the drain. Government should realize that with this crop of electricity managers, the hope of a stable electricity supply may not be realized.

     

    • Itaobong Etim

    Calabar.

  • Reps to govt: stop sale of PHCN assets

    Reps to govt: stop sale of PHCN assets

    The House of Representatives has urged the Federal government to stop further sale of some assets of the Power Holding Company of Nigeria (PHCN).

    The lawmakers said the sale of PHCN’s overtime cargoes was fraudulent with opportunities denied qualified bidders that have no personal relationships with those in charge of the exercise.

    Consequently, the Committees on Power and Public Procurement have been mandated to investigate the alleged fraudulent sale of the assets.

    The decision of the House followed the adoption of a motion of urgent national importance by Rita Oji (PDP, Lagos), who recalled that auctioning of PHCN overtime cargoes, scraps and obsolete items by the Nigeria Electricity Liability Management Company (NELMCO) valued at over N20billion was recently carried out and over N1.5billion was claimed to have been realised from the sale.

    According to her, there were widespread claims of irregularities and improper advertisement on national dailies including the Traders Journal.

    She said: “Allegations of posting fraudulent and misleading ads for the sale of high-value items on selected dailies from anticipated buyers were prominent

    “People who heard about the auction and showed interest were purportedly disallowed or given the opportunity to buy the assets after fulfilling all necessary requirements for the purchase.

    “It is worrisome that the bidding process was allegedly neither transparent nor forthright, allegations of fraudulent activities trailed the sales and the outcome of the activities ended in dispute.

    “If the outcry by the public against the seemingly spurious sales and auctions is left unattended to, it will set a bad precedence for any such transactions in the future.

    “The outcry is vociferous, the allegation are weighty and a comprehensive and detailed scrutiny would enable both the alleged offended and offender to be treated judiciously”.

    The motion was unanimously adopted after it was put to a voice vote by the presiding officer, Deputy Speaker Yussuff Lasun.

    The joint Committee was given a month to carry out its workman’s report back for further legislative action was also asked to monitor further sales of remaining overtime cargoes.

  • Strike: FG says ULC not yet recongised Trade Union

    Strike: FG says ULC not yet recongised Trade Union

    The Federal Government said on Thursday that the United Labour Congress (ULC) was not a yet a registered and recognised Federation of the Trade Unions in the country.

    Sen. Chris Ngige, Minister of Labour and Employment said this at a news briefing in Abuja.

    News Agency of Nigeria (NAN) recalls that the ULC had earlier issued a 14-day ultimatum to the Federal Government, which expired on Sept. 8.

    The association further issued another seven-day strike notice that would expire on Sept. 15 with a threat to shut down the oil, power and the aviation sectors.

    The demand includes that the Federal Ministry of Labour and Employment should set up a task force immediately to carry out factory inspection; that Government should review the privatisation of Power Holding Company of Nigeria (PHCN).

    Others are that the Army and Police should withdraw their men in different work places where they are currently stationed as they intimidate and harass workers in such establishment.

    While also that the ULC demands the immediate release of its “Registration Certificate”.

    According to Ngige, Mr Didi Adodo, Secretary General of ULC in a statement gave false impression that this Association is a Government recognised Federation of Trade Unions.

    “Our immediate reaction is to remind the promoters of this Association that they are not yet a Federal Government recognised Federation of Trade Unions and hence cannot speak on behalf of any Trade union.

    “The Trade Union Act. CAP T14, Laws of the Federation of Nigeria (LFN) 2004, is explicitly clear on how a group of Trade Unions can coalesce to form a Federation of Trade Unions.

    “Section 35(1)(b) states inter alia “A Federation of Trade Unions may be registered by the Registrar if it is made up of 12 or more Trade Unions none of which shall have been a member of another registered Federation of the Trade Unions.

    “The promoters of ULC should fulfill this requirement to qualify to be registered.

    “To call out workers on essential services for a national strike without any major trade dispute with their direct employers will be tantamount to blatant violation of our extant labour laws and International standards.’’

    He said that Nigerians known that the Nigeria Labour Congress (NLC) was the Oldest Federation of the Trade Unions in Nigeria.

    He said NLC has been factionalised since after her elections in 2015 and the Ministry of Labour and Employment has been making efforts to resolve the controversies that arose from the disputed elections.

    He added that this to government is democracy in the practice of Trade Unionism in Nigeria, saying that a group of Trade Unions are free to ask for registration as a federation if they are dissatisfied with their present federation.

    Ngige, however, said they must satisfy the conditions of having 12 new Trade Unions that were not previously affiliate of any of the existing federations; In this case, the Nigeria Labour Congrees(NLC) and Trade Union Congress(TUC).

    “For the avoidance of doubt, the Government will not fold her hands and allow any group of persons take the law into their hands.

    “That is  by brazenly threatening to commit Economic Sabotage by shutting down essential services in the Oil and Gas, Power, and Aviation Sectors as threatened by the promoters of ULC.

    “Members of the Trade Unions who are sympathetic to the ULC mentioned are advised to go about their duties in the interest of a peaceful industrial relations environment and for the good of our national economy,” Ngige said.

    The minister assured all Nigerians that government would ensure security in all work places.

  • ‘Nigeria lost N15b to PHCN sale’

    ‘Nigeria lost N15b to PHCN sale’

    Nigeria has lost about N15 billion due to under leases, unauthorised sale and  misappropriation of funds through the defunct Power Holding Company of Nigeria (PHCN), the House of Representatives said yesterday.

    Other leakages that aided the loss, according to the House, include abuse of process and outright negligence in the handling of non-core assets of the defunct power firm.

    These emerged at an investigative hearing with stakeholders by the subcommittee of three standing committees of the House investigating the sale of PHCN non-core assets.

    According to the Chairman of the subcommittee, Jonathan Gaza (PDP, Nasarawa), many of the PHCN non-core assets, transferred to the Nigeria Electricity Management Company (NELMCO) were leased at undervalued rates, while others were given out to distribution companies (DisCos) and some diverted.

    Saying that the N15billion loss was too much considering Nigeria’s present financial state, Gaza said: “It will interest you to note that a conservative investigation has revealed monumental losses to the government and the people of Nigeria in excess of about N15billion as a result of under leases, unauthorised sales, misappropriation of funds, abuse of process and outright negligence.”

    He expressed the determination of the panel to recover the lost revenues under the liquidation process and employ other measures to save the country from further financial losses.

    The Director-General, Bureau for Public Enterprises (BPE), Alex Okoh, said though the process for the sale of the non-core assets began sometime ago, it was put on hold due to non-approval from the National Council on Privatisation (NCP).

  • BPP urges court to void PHCN’s N1.786b liquidation contract

    BPP urges court to void PHCN’s N1.786b liquidation contract

    The Bureau of Public Procurement (BPP) has urged a Federal High Court in Abuja to void a N1.786,287,040 contract awarded for the wind-up/liquidation of the Power Holding Company of Nigeria (PHCN), claiming it was illegal.

    It is BPP’s contention that the contract – for the provision of legal advisory services for the liquidation of PHCN – awarded in 2014 by the Bureau of Public Enterprises (BPE) to a law firm, JP Gadzama LLP (formerly J. K. Gadzama & Partners LLP) was without compliance with due process as required under the Public Procurement Act (PPA) 2007.

    The BPP stated that the BPE allegedly awarded the contract and made part-payment to the law firm, without first obtaining a “certificate of no objection” from it (BPP), as required  the PPA 2007.

    This formed part of BPP’s argument in documents filed by its lawyer, Wahab Olatoye in response to a suit by J. K. Gadzama LLP and Joe-Kyari Gadzama (SAN), marked FHC/ABJ/CS/997/2015.

    The plaintiffs had sued, alleging among others, that BPP unlawfully effected a downward review of the cost of the contract from N1.786,287,040 to N929,613,188.94 and queried BPP’s right to so act.

    In their amended originating summons, the plaintiffs claimed to have bided N2,864,349,600 for the contract, while the BPE agreed to “a negotiated N1,786,287,040.”

    sary for the liquidation of 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.

    “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 the Electric Power Sector Reform (EPSR) Act, and that the proposed agreement to this effect, should not be executed by parties.”

    The BPP argued that, in awarding the contract to the 1st plaintiff (J.K.Gadzama LLP), the 2nd defendant (BPE) violated existing laws, more so, when it was not the nature of contracts that involved national security or defence to warrant it from being exempted from the application of the PPA 2007.

    It argued that from a community reading of sections 16(1) & (2), 41(10 of the PPA 2007 the award of consultancy contract for a legal advisory service is a public procurement within the meaning of Section 15(10 and 60 of the PPA 2007.

    The BPP, while challenging the BPE to produce the certificate of no objection, on which basis it purportedly awarded the contract, argued that its petitions to the EFCC and ICPC on the issue were not frivolous, but intended to ensure that due process was adhered to.

    It further said: “in the instant case, the 2nd defendant (BPE), in gross violation of instant law, particularly section 16(1)(2) of the PPA 2007, after being denied the request for the issuance of a certificate of no objection to award a consultancy contract for legal advisory services for the winding up of PHCN pursuant to Section 16(18) of the PPA 2007 and also, on the objection and advice by the AGF, BPE went ahead to award the contract.

    “It is noteworthy to state that the issue in contention is not the selection of the 1st plaintiff as the winner of the bid, but whether the award of the said contract to the 1st plaintiff by the 2nd defendant, without a certificate of no objection duly issued by the 1st defendant is lawful.

    “We submit that the award of the contract to the 1st plaintiff by the 2nd defendant, without due compliance with Section 16(1)(2) of the PPA is illegal, null and void and same should be set aside accordingly pursuant to Section 16(4) of the PPA 2007,” the BPP said.

    It equally objected to the suit on ground of jurisdiction, arguing that not only was there no cause of action against it and that the suit was statute barred within the contemplation of Section 2(a) of the Public Officers’ protection Act, having been filed about seven months after the downward review of the contract sum was effected.

    The BPP noted that while the plaintiffs stated that the downward review was effected in April 2015, they filed the suit on December 8, 2015.

    After taking arguments from parties on June 7 this year, Justice Adeniyi Ademola reserved judgment and said the court will inform parties when the judgment is ready.

     

  • Senate may seek PHCN privatisation reversal

    Senate may seek PHCN privatisation reversal

    • DisCos are bankrupt, says Murray-Bruce

    Bewildered senators were yesterday told that Electricity Distribution Companies (DisCos) are technically bankrupt.

    Chairman, Senate Committee on Privatisation, Senator Ben Murra- Bruce, told his colleagues that the way out of the worsening power situation in the country was to revisit the privatisation of the defunct Power Holding Company of Nigeria (PHCN).

    Senator Murray-Bruce spoke following a motion on “DisCos, electricity consumers and the burden of overbilling” sponsored by Senator Dino Melaye (Kogi West).

    The lawmaker said those expecting the DisCos to install meters in their houses should forget the idea since it was obvious that the DisCos lacked the resources to buy meters.

    He said: “The DisCos are technically bankrupt; they have no money to buy meters. Unless we revisit the entire privatisation, there will be no solution to the power sector. We have to urgently revisit the privatisation exercise in its entirety.”

    Vice Chairman, Senate Committee on Power, Senator Bukar Mustapha (Katsina North) also stressed the need to address inefficiency in the power sector.

    Mustapha who said the value chain in the power sector is weakest at the DisCos level insisted that the country was sitting on an emergency that should be drastically addressed in the interest of the country and its development.

    He said: ‘The problem we have is the inefficiency within the system which we have actually so far not decided to address. I will give you a small example: Nigeria has an installed capacity of 12,522 Megawatts (Mw) of power.

    “We have non-available capacity of 5,300Mw; we have non-operational capacity of 3,180Mw meaning that what is actually available is just over 4,000Mw out of 12,500Mw.

  • Fed Govt urged to revoke PHCN’s privatisation

    Fed Govt urged to revoke PHCN’s privatisation

    The Chairman, Sokoto State Chapter of the Bureau De Change( BDCs) Operators, Alhaji Aliyu Sahabi,  has appealed to President Muhammadu Buhari to revoke the sale of the defunct Power Holding Company of Nigeria(PHCN) to private operators.

    Speaking yesterday in Sokoto, the Sokoto State capital, he described the privatisation of the power sector as a complete rip off, lamenting that Nigerians were beung forced to pay for what they did not consume.

    The appeal is coming on the heels of recent internal crisis rocking the working relations between workers union and the management of Kaduna Electricity Distribution Company (KEDCO).

    The union had accused the management of victimisation following the termination and unecessary delay in confirmation of workers’ appointment after completing their probationary period of six months as well for over charging/billing of consumers using uncalibrated metres recently installed.

    Alhaji Sahabi said the revocation would allow the Federal Government to wholly revamp the power sector as well as device a more beneficial billing method for customers.

    He said: ‘’After doing so, more funds should be pumped into revamping the sector. This means improved power supply to all parts of the nation, as well as the revival of the collapsed industries.

    ”This will lead to efficient service delivery to consumers, guarantee constant supply and improved revenue at reasonable cost to consumers.”

    He also said revamping the sector would bolster the local manufacturing sector,  reduce heavy demands for foreign exchange, especially dollar.

    Alhaji Sahabi added that the revival of the manufacturing sector would help to drastically reduce poverty, unemployment, restiveness and crimes, among others.