Daily Independent Online.
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Friday, June 11, 2004.
Why we failed, by BPE
• Opens fresh bids for Daily Times, ALSCON
By Sanya Adejokun,
Senior
Correspondent, Abuja
A combination of
factors has been blamed for the failure of the Bureau of Public Enterprises
(BPE) to meet its objectives in the last 11 months.
Its Director General,
Julius Jibril Bala, named the World Bank, organised Labour and the nature of
enterprises for the inability of the agency to meet its short-term targets.
But, in his
explanation to newsmen in Abuja on Thursday, he said he has almost concluded
transactions on two of the 16 enterprises slated for privatisation in the first
quarter of 2004.
Besides, BPE has
opened fresh bids for the Daily Times Nigeria Limited (DTN) and the Aluminium
Smelter Company of Nigeria (ALSCON).
In October last year
BPE had listed firms to be sold off during the period to include the National
Trucks Manufacturing Limited (NTML), Kano; Nigerian Romanian Wood Industries;
Chemical Company of Senegal; Electricity Meter Company of Nigeria; ALSCON;
Nigerian Mining Corporation; Ore-Irele Oil Palm Company; Afribank; DTN and
Nigeria Hotels (Central Hotels).
They also include
Abuja Stock Exchange; Nigerian Unity Line; Nigerian Aviation Handling Company;
Nigeria Railway Corporation and the West African Refinery in Sierra Leone.
But at the briefing on
Thursday, Bala said the World Bank has refused to provide funds for the
transactions. The bank complained that the framework that would enable BPE draw
from its funds since 2002 had been absent. It was put in place only in the last
two months.
Establishments in the
oil and gas sector were particularly hit by this non-approval of the plans by
the bank.
Bala also blamed
members of organised Labour for BPE’s inability to privatise the Port
Harcourt refinery before the end of last year as planned, saying by last December the Nigeria Labour
Congress (NLC) had insisted that all the refineries must be rehabilitated and
functional before being sold.
He cited technical
difficulties for the inability to privatise other enterprises.
For instance, Bala
said NITEL management only submitted the Management Account last week instead
of two months ago whereas “you cannot go to IPO without accounts”.
In the case of ALSCON,
he explained: “Two weeks ago, we had to compel the auditing company to
come down here and we sat down with them for two weeks to ensure that 2002
audited accounts were available”.
Nonetheless, BPE has
concluded transactions on the sale of NTML with the recent payment of $1.3
million by Art Engineering, representing the balance 24 per cent Federal
Government shares. Also, Majestic Oil has paid for the West African Refineries
in that country, seized from the late Sani Abacha’s family.
And barring further
unforeseen contingencies, as witnessed on the last five occasions, BPE has
rescheduled bids opening for ALSCON and Daily Times for Monday next week.
But Bala warned that
the current national strike could be a reason for one more postponement if it
is not called off before then.
Five companies have
each paid the mandatory non-refundable fee of $15,000 to participate in the
bidding for DTN. Five real estate assets of the company would also be disposed
of to offset outstanding workers’ salary.
Two companies are
vying for a 77.5 per cent stake in ALSCON, five percent would go to the staff
and 10 per cent to the host community through the Akwa Ibom State Government.
The two companies are
Rusal/Dayson Holdings Ltd and BFI Group Corporation/Daewoo.
BPE has also
rescheduled the opening of bids for Delta Steel Company, Aladja for Friday next
week.
This followed the
submission of technical and financial proposals by five prospective core
investors who undertook Date Room/Core Investors Due Diligence after paying the
$15,000 mandatory pre-qualification fee.
The bidders are Niger
Benue Transport Company (NBTC), Osaka Steels Ltd (in consortium with
MCC+Sougang), Dangote Industries Ltd., BUA International Ltd and Global
Infrastructures Holdings Ltd.
BPE held a technical
bid conference with them on May 26
to draw attention to the decision by the National Council on
Privatisation (NCP) that the company be sold on “as is” basis.
On the National
Fertilizer Company of Nigeria (NAFCON), Bala disclosed that eight companies
have signified interest in buying the 90 per cent stake available for a core
investor. The remaining 10 per cent would be sold to the host communities
through the Rivers State Government.
Vice President Atiku
Abubakar last April inaugurated a panel to verify and negotiate the N8 billion
trade creditors’ claims on NAFCON.
As for Afribank, BPE has refunded the N8 billion it
collected from eight prospective core investors in it, with interest, following
a presidential directive reversing the proposed sale to initial public offer
through the stock exchange.
