17 June 2015, Abuja – The Federal Government has approved N929,613,188.94 as legal fees for the liquidation of the defunct Power Holding Company of Nigeria in order to transfer liabilities in over 500 court cases from PHCN to the Nigeria Electricity Liability Management Limited.
He also disclosed that another N500m was approved for the Office of the Accountant General of the Federation to enable it pay overtime to the workers that handled the payment of terminal benefits to workers of PHCN.
He said, “The National Council on Privatisation, at its meeting held on Thursday May 9, 2013, considered and approved the award of a contract to Messrs J.K. Gadzama & Partners as the Consultant, Legal Advisory Services for the winding up of PHCN Plc in the sum of N929,613,188.94 only for a period of six months after obtaining a BPP No Objection.
“The Office of Attorney-General had earlier objected to the necessity of the procurement, but later withdrew its objection and endorsed the engagement of Messrs Gadzama & Partners for the legal advisory services via a letter presented to the NCP ref: HAGF/BPP/2014/Vol.1, dated 17th September 2014.
“Consequently, the council, at its meeting held on April 16, 2015, finally approved that BPE should immediately proceed to execute the contract with Messrs J’K Gadzama & Partners as the Consultant, Legal Advisory Services for the winding up of PHCN Plc in the sum of N929,613,188.94 based on the ‘No Objection’ earlier granted by BPE.
“The legal consultancy is to novate the over 500 court cases pending against PHCN to NELMCO and also to provide routes of title to purchasers of PHCN non-core assets as well as wind down PHCN among other terms of reference.”
On the payment of N500m to the Office of the Accountant General of the Federation, Okoh said it was not for consultancy services but to enable OAGF to pay for expenses incurred in the process of paying terminal benefits to the workers.