Power firms: FG insists on Nov 1 handover
Minister of Power, Prof. Chinedu Nebo
The much anticipated conclusion of the privatisation of the power sector is enveloped in uncertainty following conflicting signals emanating from key stakeholders on the scheduled handover of the successor companies of the Power Holding Company of Nigeria tomorrow (Friday).
While the Federal Government is
insisting that there is no going back on the handover date, the PHCN
workers are gearing up for a nationwide strike to prevent the handover,
claiming that their terminal entitlements have not been fully paid.
The consortia that won the bids for the
successor power firms, on the other hand, are anxiously waiting to
receive the nod from the government to take over the firms so that they
can begin the implementation of their turnaround plans.
To underline its seriousness about the
November 1 handover of the firms to the new investors, the Federal
Government has deployed ministers and key officials to the various
locations of the successor companies to
handle the transfer of ownership
on its behalf.
It insisted that 40,093 out of the
47,913 identified workers of the PHCN had been fully paid their
entitlements, which were put at N294.4bn, while N214.2bn was paid as
severance package, with the workers’ pension gulping N80.2bn.
The National Union of Electricity
Employees is, however, disputing the payment of the pension
contributions, and has vowed to call the workers out on an indefinite
strike.
The Federal Government, through the
Bureau of Public Enterprises, on Wednesday released the schedule for the
handover, with key government officials mandated to represent
Vice-President Namadi Sambo, who is also the Chairman, National Council
on Privatisation at the various locations.
According to a statement by the BPE, the
Minister of Power, Prof. Chinedu Nebo, will hand over the Abuja
Distribution Company to KANN Utility Consortium in Abuja; the Minister
of Finance, Dr. Ngozi Okonjo-Iweala, will hand over the Ibadan
Distribution Company to Integrated Energy Distribution & Marketing
Limited; while the Minister of Petroleum Resources, Mrs. Deziani
Alison-Madueke, will give out the Enugu Distribution Company to
Interstate Electrics Limited.
The Minister of Industry, Trade and
Investment, Mr. Olusegun Aganga, will give out the Eko Distribution
Company to West Power & Gas; the Minister of Transport, Idris Umar,
is expected to hand over the Kainji Electricity Distribution Company to
Mainstream Energy Solutions Limited; while the Attorney-General of the
Federation and Minister of Justice, Mr. Mohammed Adoke, will handle the
transfer of the Yola distribution Company to Integrated Energy
Distribution and Marketing Limited.
Similarly, the Minister of Mines and
Steel Development, Mr. Musa Sada, will oversee the handing over of the
Kano Distribution Company to Sahelian Power SPV Limited; the Minister of
Information, Mr. Labaran Maku, will transfer the Jos Distribution
Company to Aura Energy Limited; the Minister of Labour, Chief Emeka
Wogu, will hand over the Ughelli Generation Company to Transcorp Ughelli
Power Plc; while the Minister of State for Works, Ambassador Bashir
Yuguda, will preside over the handing over of the Shiroro Generation
Company to North-South Power Company.
The Director-General, BPE, Mr. Benjamin
Dikki, is expected to hand over the Ikeja Distribution Company and Egbin
Power Plant to NEDC/KEPCO Consortium; the Permanent Secretary, Ministry
of Power, Dr. Godswill Igali, will handle the transfer of the Port
Harcourt Distribution Company to 4Power Consortium; the Chairman,
Presidential Task Force on Power, Mr. Beks Dagogo-Jack, will hand over
the Benin Distribution Company to Vigeo Power Consortium; while the
Group Managing Director, Nigerian National Petroleum Corporation, Mr.
Andrew Yakubu, will preside over the transfer of the Geregu Generation
Company to Amperion Power Distribution.
Dikki said, “This handover is a
culmination of 14 years of painstaking effort by the National Council on
Privatisation, Bureau of Public Enterprises and other key stakeholders
to reform and liberalise Nigeria’s electricity industry, which began in
1999.”
Igali also said this while briefing
State House correspondents on the outcome of a meeting between the
stakeholders in the power privatisation process and Sambo at the
Presidential Villa, Abuja that the government was sure of a successful
handing over since it had made a significant progress in settling the
disengaged workers.
Igali explained that while the severance
packages went directly into the bank accounts of beneficiaries, the
gratuity was paid to their pension fund custodians.
He added that the documents of additional 605 workers, who were validated on Tuesday, had been sent for payment.
The permanent secretary, however, said
the government currently had issues with some workers, whose biometric
data were corrupted.
He said those under this category, 1,478
workers from the Enugu Distribution Company and 929 others nationwide
would be invited to Abuja for recapturing.
Igali said the government also had
issues with another 1,000 workers who had been cleared but had cases of
duplication of names and account numbers, while describing as bad cases
those of 2,500 whom he said had no record that they were PHCN workers
probably because they were casual workers.
However, the NUEE directed the workers
to withdraw their services if the government eventually went ahead with
the handover of the PHCN subsidiary companies to private investors on
Friday.
The Secretary General, NUEE, Mr. Joe
Ajaero, in a statement on Wednesday, said outstanding labour issues had
yet to be resolved by the Federal Government; adding that the plan to
hand over the power assets negated the agreement it reached with the
union.
“By this statement, we urge all workers
of PHCN to withdraw their services from any unit in the event of further
provocation by armed military personnel desperate to take over PHCN
installations. This is to avoid confrontations with the troops from
November 1, 2013,” he said.
Ajaero noted that the gratuity payment
was only 68 per cent completed, adding that no member of staff has had
their pension contributions transferred into their Retirement Savings
Accounts.
He said, “Those that retired from
service since 2011 have not received their benefits totalling about
N19bn. The differences of the shortfall of the terminal benefits from
June 30, 2012 till date have not been considered for payment.
“The biometrically captured and
considered casuals’ appointment has not been addressed. The question of
10 per cent equity shareholding (in the companies) by the workers as
statutorily provided has not been given attention.
“While we appreciate and sympathise with
the core investors, we ask for their understanding and that of the
Nigerian public in our pursuit to ensure a seamless transition. We are
resolute on receiving every kobo owed us as we are sure such liabilities
will not be borne by the new investors unless there is a commitment to
that effect from them.”
The President-General, Senior Staff
Association of Electricity and Allied Companies, Mr. Bede Opara, stated
that although all government agencies concerned in the process had made
tremendous efforts at settling the workers, what was remaining was the
payment of the employees’ pensions.
He stated that the workers would not
have been interested in embarking on a strike, but maintained that the
handover of the firms would not be fair if all issues were not amicably
resolved.
