FG ratifies sale of 10 DISCOs

The National Council on Privatisation (NCP) chaired by Vice-President Namadi Sambo, yesterday ratified the sale of 10 electricity Distribution Companies (DISCOs) including that of Enugu, for which the reserve bidder is challenging the sale in court.

The Chairman of NCP Technical Sub-Committee on the sale process, Atedo Peterside, confirmed to State House correspondents the eventual sale, at the end of its meeting, declining however to give details of how the issue was resolved because it will be subjudice, since the matter is now in court.

The preferred bidder, Interstate consortium, had reportedly failed to meet payment deadline but still secured the deal, a development the reserve bidder, Eastern Electric, is challenging in court.

Interstate is linked to businessman, Emeka Offor, while Eastern Electric is linked to former Minister of Power, Barth Nnaji.

According to Peterside, 'also, of the five electricity Generating Companies (GENCOS) sold, only four were ratified by the NCP, leaving out Sapele GENCO, over which legal issues arose. The bidder is yet to pay in full'.

According to Peterside, the NCP has consequently referred the case of Sapele GENCO to the Office of the Attorney-General and Ministry of Justice for advice before it will be reconsidered.

He disclosed that the bulk of the proceeds from the sales is being used for the payment of severance entitlements to about 49,000 workers of the Power Holding Company of Nigeria (PHCN), original owners of the DISCOs and GENCOs.

Director-General of the Bureau for Pubic Enterprises (BPE), Benjamin Dikki, in his remarks disclosed that the Accountant-General of the Federation has been directed to go ahead with the payments.

He said all payments are scheduled to be completed by September 27, while the formal hand-over of the companies to the new owners will be done in October by President Goodluck Jonathan.

Permanent Secretary of the Ministry of Power, Godknows Igali, in his remarks, stressed that PHCN workers' entitlements would be paid with proceeds from sale of the GENCO and DISCO assets, especially when virtually all successful bidders have paid.

He disclosed further that about 26,000 workers have already been paid off, adding that there would be massive post-service training although massive job losses are not expected as many of the workers would be absorbed by the new owners.