FG committed to supporting privatised entities for optimal performance – BPE

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The Federal Government has, again, reiterated its commitment to providing enabling environment and requisite support for privatized enterprises to perform optimally in realizing the objectives of their privatization.

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Mr Alex Okoh, the Director-General of the Bureau of Public Enterprises (BPE), said this in a statement by Amina Othman, Head of Public Communications, on Friday in Abuja.

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According to the statement, Okoh made the remark at the handover of the Certificate of Occupancy (C of O) of Ikorodu Bricks and Clay Ltd. (IBCL) to the core investor, Continental Project Development and Supplies Ltd. (CPDSL).

 

Okoh said CPDSL should execute a revised performance agreement which was submitted by the investor in May.

 

He also said the group should revive the company and bring it to profitability in the shortest timeframe.

Okoh urged the core investor to note the addendum to the Share Sales/Purchase Agreement (SSPA), which prevented it from the sale or disposal of part or the whole shares or land of the company without the prior notice and approval of the bureau.

 

The Director-General added that the BPE would monitor the implementation of the Post Acquisition Plan (PAP) to ensure strict compliance.

 

In his response, Mr Albert Awofisayo, the company’s Group Chairman, said the company would abide by the reviewed Share Purchase Agreement (SPA) to resuscitate the company for generating employment in Nigeria.

He appeal to the Federal Government to intervene in the power supply to the company as the cost of generating power by the company was expensive.

 

The statement noted that IBCL, wholly owned by the Federal Government of Nigeria, was privatised through a core investor sale in 2006.

The company was acquired 100 per cent by CPDSL through a competitive bidding process.

 

Through the post transaction monitoring exercise, it was discovered that IBCL stopped operations few years after privatisation due to the core investor’s inability to raise capital to finance the operations, thus the company was listed among the non-performing enterprises.

“In its quest (through the committee set up for non-performing enterprises) to identify the challenges inhibiting performance, CPDSL stated the inability to raise capital to finance its operations as part of its challenges.

“It then approached the bureau to secure C of O for the company to enable them secure financial facility to resuscitate the company,” the statement said.

It added that the BPE consequently approached the Ministry of Works and Housing to secure C of O for the company and the Ministry requested the company to pay for the ground rent for the facilitation of the title document.

This prompted the bureau to intervene and requested for a waiver to enable the company secure necessary finance to turn around the company to profitability.

Consequently, President Muhammadu Buhari granted the waiver of the fee, and directed the BPE to ensure that the core investor undertakes to revive the company after the waiver is granted. NAN/SHARE THIS

  • Tag: Alex Okoh, BPE, IBCL, CPDSL

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