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Transcorp buys NITEL for N105b

INDIGENOUS big business players have finally succeeded in buying the Nigerian Telecommunications Limited (NITEL)......

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  INDIGENOUS big business players have finally succeeded in buying the Nigerian Telecommunications Limited (NITEL).

  
  

  The Trans-national Corporation of Nigeria (Transcorp) yesterday emerged core investor in the communication behemoth for a fee of about N105 billion ($750 million). But the Federal Government also yesterday denied plans to privatise state-owned hospitals and other health institutions.

  
  

  The sum of $500 million of the amount pledged for NITEL is expected to be paid by Transcorp within seven working days beginning from yesterday, failing which may render the deal void, according to the Bureau of Public Enterprises (BPE) Director - General, Mrs. Irene Chigbue.

  
  

  The $750 million represents the 75 per cent equity holding which the Federal Government is divesting in NITEL to the core investor. The remaining 25 per cent is to be sold to Nigerians through a public offer latest in November this year.

  
  

  In addition to the bid fee, a sum of $1 billion is to be injected immediately into the telecommunications company to turn it around, according to the chairman of Transcorp, Dr. Ndi Okereke-Onyiuke.

  
  

  Already, she stated that a credit line facility of one billion Euros has been secured from the European Economic Council (EEC) at a four per cent interest rate charge for the investment purpose.

  
  

  Under the deal, Transcorp is to bear the NITEL group's sundry liabilities put at about N60 billion, excluding the pension liabilities, which the Federal Government has agreed to offset. An estimated 7,000 workers out of the about 10,000 workforce in the NITEL group are being prepared for sack under the privatisation plan of the company.

  
  

  The Minister of Communications, Chief Cornelius Adebayo and the Executive Vice Chairman of the Nigerian Communications Communication (NCC), Mr. Ernest Ndukwe, who witnessed the transaction yesterday, expressed delight at the development and pledged their readiness to issue approvals to enable Transcorp begin business without delay.

  
  

  Ndukwe, in particular, made a case for the NITEL staff and told the new investors that the workers were good and that all they required was motivation and training to excel.

  
  

  Transcorp, which is buying into NITEL in partnership with Etisalat of Middle East and British Telecoms (BT) as technical partners, according to Chigbue, was chosen because it appeared the best of the six contending firms that were shortlisted in terms of both technical competence and financial capability.

  
  

  The other firms included Globacom, Afro Telecommunications Limited/Korean Telecomm, MTC/Celtel International and InvestcomTelkom of South Africa.

  
  

  The sale yesterday made up for the three failed attempts in the past to privatise the company, the first being the failure of the IILL of Britain to pay up for the $1.317 billion in 2002; the Pentascope's failed bid to meet contractual obligation in the preparation of the company for sale and the Orascom Telecom's offer of $256.53 million last December which was turned down by the Federal Government for being "ridiculously low."

  
  

  The vice chairman of the Technical Committee of the National Council on Privatisation, Alhaji A. A. Ibrahim, yesterday described the Transcorp offer as reasonable, but said the council would still meet to consider it.

  
  

  The government, however, has no immediate plan to privatise hospitals and other health institutions, according to the Minister of Health, Prof. Eyitayo Lambo.

  
  

  The minister stated this yesterday in Abuja while hosting medical unions under his ministry. Prof. Lambo reiterated government's commitment to guaranteeing qualitative healthcare delivery to all Nigerians irrespective of their social standing.

  
  

  He said: "Let me assure you that the Federal Government will not and it is not thinking of out-sourcing in the clinical and health services. Even in the advanced country, nobody out-sources a critical sector like the medical sector."

  
  

  However, Lambo noted that the current attempt to implement the reform agenda of the Federal Government in the health sector should not be seen as a veiled measure to sack workers indiscriminately, explaining that the reform is underpinned by a set of guidelines that are meant to serve as checks and balances.

  
  

  The minister stated that the personnel record and payroll audit of the ministry which is the first step is aimed at cleaning up the personnel data by re-validating the identity, bio-data and accurate

  
  

  number of staff in the various organisations within the ministry. He declared that chief medical directors and chief executive officers of some federal medical establishments embarked on employment when the Federal Government placed embargo on employment. He added that such employment did not follow due process hence the current effort at reversing such reckless recruitment.

  
  

  On the criteria to be adopted in carrying out the imminent retrenchment, he said: "Let me emphasise that in determining the personnel to be exited, the following criteria earlier approved by Mr. President shall be applied: officers appointed without due

  
  

  authorisation, officers with cases of serious misconduct, officers that are medically unfit, staff in jobs which services are monetised, outsourced or abolished (cleaners, drivers, cooks, security men,

  
  

  messengers etc), staff that have become redundant due to the scrapping or restructuring of their organisation/department, officers without entry qualification or mandatory skills for their jobs, staff adjudged to be insufficient or have unsatisfactory character and officers wishing to proceed on voluntary retirement."

  
  

  Lambo added that the implementation of the reform of the

  
  

  health sector is expected to be concluded in December 2006.

  
  

  While assuring the visiting union leaders of fairness in the exercise, the minister maintained that according to the approved generic guideline, management structures have been put in place to handle every step of the reform process.

  
  

  Speaking with The Guardian after the meeting, which lasted for close to three hours, Lambo described the parley as fruitful and that the forum provided an avenue for dialogue.

  
  

  His words: "We are looking at the reforms from various institutions. The unions are now well informed about the reform in terms of the process and what is going on generally. But they expressed the desire to be involved in the process so that nobody will be left out in the entire process. We stayed for long hours to discuss other issues such as conditions of service."

  
  

  He continued: "I told them that concerning salary review, the Sonekan committee is already working on that and as soon as they finish their work, the President will take decision on that. I also informed the union leaders that if they harbour any ill-feeling, they should feel free to take their case to the committee. On salary review, I have no comment on that because I am not a member of Sonekan committee."

  
  

  Also speaking, National President of Medical and Health Workers' Union of Nigeria, Ayuba Wabba, described the meeting as belated and largely a ministerial briefing.

  
  

  He disclosed further that the minister used the occasion to inform the union leaders on what had been done as regards the reform agenda in the health ministry.