From ISAAC ANUMIHE, Abuja
Bureau of Public Enterprises (BPE) has constituted transitional committees of the 15 companies, whose preferred bidders paid 25 per cent of the bid value, with a view to finally handing over to them. Speaking at the inauguration of the committees in Abuja, yesterday, Chairman, Technical Committee of National Council on Privatisation (NCP), Mr. Atedo Peterside, noted that the 15 companies met the deadline after paying the 25 per cent of the bid price.
Earlier, Acting Director- General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, explained that each successor company has a three-member committee. The members are each from the BPE, the management of the successor company and the preferred bidder. The BPE nominee is the chairman of each committee. According to Dikki, both BPE and the new owners have a mutual interest in ensuring the companies operate in a way as to maintain the value of the company during the transition period.
He added that the transition period could be within a month or a maximum of six months depending on full payment. According to him, transitional arrangements will allow a platform to ensure that both the companies and purchasers are ready for the handover process. He emphasised that the managements and boards of the successor companies will continue to exercise their functions during the transition period without interference from the transitional committees.
The terms of reference for the transition committees, he said, include, facilitating the smooth transition and eventual handover of the management and operational control of the successor companies to the purchasers; allow purchasers access to the companies in order to prepare for the implementation of their business plans laid out in the proposals submitted to the Bureau of Public Enterprises; provide a forum for purchasers to engage with existing management and employees to ensure a smooth transition and handover; and allow BPE and the purchasers to monitor the on-going operations of the company to ensure they are operating in an efficient manner and in compliance with the terms of the Share Sale Agreements. Recall that Share Sale Agreements were executed between the preferred bidders and BPE on February 21, 2013.