26 February 2014, Abuja – The Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, has reminded the new owners of Afam Power Plc and Kaduna Electricity Distribution Company (KEDC) that by granting them access to the companies, they were not assuming control of the Power Holding Company of Nigeria (PHCN) Successor Companies (SCs) they have paid 25% of bid price until they paid full value.
Inaugurating the Transitional Committees (TCs) of the two companies in Abuja on Monday, February 24, 2014, the DG explained that the Bureau initiated the Transitional Committees (TCs) concept in the power transaction to allow the core investors to interact with the management and to enable them have first hand information on the companies to prepare to implement the Post Acquisition Plan (PAP).
He also said it is aimed at allowing the investors to interface with the management for smooth transition from a public oriented enterprise to a private sector driven one and to engage them to understand the challenges and peculiarities of the company.
However, the DG emphasized that they would not assume full ownership of the companies until full payment is made.
“You are only allowed access to information and to acquaint yourselves with the workings of the company but not decision making. You should also not engage in any turf war with the management”, he charged them.
He said the practice was novel in the privatization history in Nigeria and that the Bureau initiated it because of the complex nature of the power transaction.
The DG while noting that the experience from the existing TCs had been rewarding and useful, expressed the hope that the two newly inaugurated Committees would also be beneficial to the core investors.
It would be recalled that on February 21, 2013 after a meeting with the Federal Government, management of the successor companies and the preferred bidders, it was resolved that after the payment of the initial 25 % deposit by the bidders, they would have the right to access the company facilities and participate in a transitional Committee.
The primary goal of the TC will be to facilitate the smooth transition of the management and operational control of the SCs.