Economic Confidential, June 14, 2009

NEWS UPDATE

NITEL Panel Takes Over from Transcorp Finally

The newly constituted but yet to be inaugurated technical board on Nitel and its mobile arm will meet  on Monday June 15, 2009 at the Bureau of Public Enterprises BPE to take over and chart a course for its management of the ailing enterprises.

Federal government through the National Council on Privatization NCP had revoked the sale of Nitel/Mtel to Transnational Corporation of Nigeria (Transcorp) and constituted an interim technical management board to oversee the activities of the enterprises pending the conclusion of the sale process.

The board chaired by Abubakar Mohammad, permannet secretary, Informationa and communication ministry, include Christopher Anyanwu, director general, Bureau of Public Enterprises (BPE) , Steve Oronsaye, permanent secretary ministry of finance,  the acting managing director of NITEL (to be appointed), Ibrahim Kashim, director, information and communication, BPE, Sam Worlu, SSA on economic matters to VP to represent Jonathan on the board, the NCP and the managing director, NIGCOMSAT Ltd as members.

At the meeting called by Abubakar Mohammed, the chairman of the board and permanent secretary, Information and communication ministry, management staff of the enterprises were also invited to discuss issues such as take over of both Nitel and Mtel from the duo of Kevin Caruso and Ladi Williams the current managing directors.

Abubakar had on June 5 against the recommendation of both the State Security Service (SSS) and the BPE , wrote to the duo of Kevin Caruso and Ladi williams, notifying them to hand over the affairs of the companies to the most senior official of the enterprises.

Both the State Security Service and the BPE had recommended to the presidency, the retention of both Caruso and Williams till the end of the on-going sale process of the two enterprises.

Their retention was to assist in giving first hand information to prospective investors when clarifications are sought as well as conducting investors round when BPE opens the data room for due diligence on the enterprises.

This informed their invitation and participation at a roadshow on Nitel/Mtel in Dubai, the Middle East to attend to clarifications by investors.

Abubakar in the letter wrote that: ‘you would recall that the federal government of Nigeria thorugh the NCP on Monday Jine 1, 2009 revoked the sale of Nitel/mtel to Transnational Corporation of Nigeria (Transcorp). Furthermore, the NCP under the chairmanship of the vice president reviewed all outstanding issues in Transcorp management of Nitel/Mtel and resolved to constitute an interim technical management board that will oversee the activities of Nitel/mtel pending the conclusion of the sale process'.

"pursuant to the above objective, you are hereby given notice to hand over the affairs of the company to the most senior officla in Nitel' said the technical board chairman.