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Contractors threaten to stop sale of NITEL….over alleged N500m debt

BY WOLE MOSADONI

ABUJA – AS the Senate Adhoc Committee investigating activities of the Bureau of Public Enterprises, BPE, began its probe, a group under the aegis, contractors of NITEL/M-Tel warned that it would stop proposed sale of NITEL/M-TEL.

In a statement yesterday, the contractors are protesting the move to sell the companies, noting that the total contract debt owed contractors by NITEL/M-Tel was in the region of N500 million. They stressed that the debt was meant to offset liabilities for disengaged staff and contractors for contracts that were variously executed between 2004 and 2006.


Part of the statement signed by Kabiru Musa and Sylvanus Onwuna read: ‘’We appeal to local and foreign investors currently in negotiation with the Federal Government on sale of NITEL/M-TEL to stay off the deal until the company’s outstanding liabilities to its numerous contractors have been fully met.

Explaining the plights of the contractors, the group said, ‘’Some have suffered permanent incapacitation as a result of auto accidents in the course of shuttling between Abuja and their various locations in pursuit of payment.

‘’Many others have also been hospitalised as a result of illnesses induced by anxiety and frustration arising from the non-payment for contracts they had long been executed.
‘’A good number of them that obtained loan facilities to execute their contracts have lost their valuable assets to the various banks, while a sizeable number of them have had their children thrown out of school.

‘’This notice has become necessary in view of the fact that there is a subsisting suit pending before a Federal High Court Abuja instituted by a coalition of contractors seeking the liquidation of NITEL/M-TEL to offset contractual liabilities against the moribund telecoms company.
‘’The total contract debt owed these contractors by NITEL/M-TEL is just in the region of N500 million, meant to be paid from a sum of N85 billion the Federal Government provided for the Bureau for Public Enterprises, BPE.

‘’Despite the fact that the N85 billion provided by the Federal Government far exceeds the entire liabilities of the ailing NITE/M-TEL, all efforts so far made by the over 300 contractors to retrieve the debts have been thwarted by some vested interests within and outside the BPE.
‘’The BPE and owners of NITEL/M-TEL have remained evasive in respect of the debts and the matter dragged till January 2011 when the contractors were told that the Federal Government was waiting for investors to buy the company for them to pay the contractors with proceeds there from.

‘’But sometime in February 2011, the BPE eventually admitted to the contractors that the Federal Government had released N85 billion for the settlement of contract liabilities of NITEL/M-TEL and payment of entitlements to disengaged staff of the company.
‘’After paying the disengaged staff of NITEL/M-TEL, the BPE declared that they were left with a balance of N16 billion from which they were going to pay the contractors”.

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