The Bureau of Public Enterprises (BPE), which handled the flawed deal with New Generation Telecommunications Consortium, says it is awaiting a fresh directive from the Presidency on which company should take over the one time telecommunications giant.
The BPE says until its recommendations to the National Council on Privatisation (NCP), which is under the supervision of the Vice President, Namadi Sambo, are approved, no further transaction will be embarked upon on NITEL’s privatisation.
In an interview with The Guardian, BPE’s spokesperson, Mr. Chukwuma Nwokoh, said the bureau’s Director-General, Bolanle Onagoruwa, was misrepresented by some media reports that since the New Generation Consortium, which offered $2.5 billion for NITEL could not meet the deadline, the next highest bidder, Omen International, which made a $956 million bid would be considered.
But Nwokoh said: “Let us get something clear here. The DG was misrepresented by some media reports. She only said we have passed a message inform of recommendations to the right quarters, which is our principal, the NCP, which is under the portfolio of Vice President Namadi Sambo. It is until the NCP scrutinises the report and gives us approval that we can determine, who or which company takes over NITEL.
“I will say again that we have made recommendations and we are not going to be stampeded by anybody. Until approval comes from NCP on how we should go about it, I mean the next step, that is when we would know how to tackle the issue of sales of the telecommunications company. For now, we have not considered anything,” Nwokoh said.
There are also fears that Omen International might have some issues to clear with the Federal Government because of its alleged connection with an embattled former governor of one of the South-South states. The same former state chief executive is involved in legal battle over the ownership of Global System of Mobile Communications (GSM) firm.
Presidency sources said it would not be in the country’s interest to handover such a national asset to an embattled governor, who is being hunted by the Economic and Financial Crimes Commission (EFCC) and other foreign powers.
With the chances of Omen hanging in the balance, government sources said NITEL/MTEL might be handed over to the third bidder, Brymedia Consortium if the firm meets the requirements.
The company, which offered $551 million for NITEL is allegedly promoted by the pioneer managing director of GSM outfit in Nigeria with strong link with a southern African country.
An official of Brymedia Consortium told The Guardian that the company was fully prepared to take over and manage NITEL if it is selected as the new owner.
“The bidding process was free and fair. BPE should be encouraged. Omen International too is a strong firm, but if eventually we are called upon to take over, we are on ground fully,” he said.
On the legal perspective of giving NITEL to the next bidder, Mr. Paul Usoro (SAN) said it was not about the company, stressing that under the principle of company law, the owner of a company is a separate individual from it.
Usoro said another issue to weigh was the commercial interest. “The sale is a commercial transaction. Government wants to sell and if they found anybody with the required money, of course, you will agree with me that, even if it were you, you will sell.
“And indeed, if there is something found wanting about the ownership of a particular company, there is a separate law that takes care of that and also the anti-graft agencies would know how to tackle that,” he stated.
At an Information and Communication Technology (ICT) event late last year, Managing Director of Nigerian Communications Satellite Limited, Mr. Timasaniyu Ahmed Rufai, suggested that Nigerians should be allowed to own part of NITEL, should the preferred bidder fail to pay the required amount within the stipulated time frame.
New Generation Consortium, which comprises of Minerva of Dubai, GiCell Wireless of Nigeria and China Unicom of Hong Kong, was put up as a Special Purpose Vehicle (SPV) to salvage the situation.
The Managing Director of GiCell Communications Limited and spokesman for the New Generation Consortium, Mr. Usman Gumi, admitted that the road towards the acquisition of NITEL had been long and tortuous.
He, however, insisted that the consortium had the necessary funds and required an approval from the authorities to proceed with the transaction.
The Guardian
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