Vice President
FG revokes sale of NITEL/MTEL to Transcorp
Jun 1, 2009, 13:59
| | The National Council on Privatization (NCP) met on Monday, June, under the Chairmanship of the Vice President, Dr. Goodluck Ebele Jonathan
The Council discussed the outstanding issues in Transcorp’s Management of NITEL/MTEL and examined the issues contained in the Shares Sales Purchase Agreement (SSPA).
In the consideration of the serious breaches of the terms and conditions of the SSPA, particularly:
(a) Exiting of British Telecommunications (BT) as the technical operator, which is condition precedent in the SSPA,
(b) Failure of Transcorp to inject the sum of N8.9bn cash into NITEL within 100 days of its takeover to address the immediate liquidity problem facing NITEL
(c) Failure to pay interconnectivity debt totaling about N17bn,
(d) Inability to pay staff salaries in the past 11 months,
(e) Failure of Transcorp to maintain NITEL/MTEL as a going concern, resulting in complete loss of market share from 15 per cent to 0.03 percent.
Council therefore agreed that, Transcorp has vitiated and voided the contract in its entirety.
Consequently, Council approved:
(a) The immediate revocation of the sale of NITEL/MTEL to Transcorp;
(b) The constitution of the Technical Board to manage the affairs of NITEL/MTEL until a new core investor is engaged by NCP;
(c) The immediate stoppage of further sale of NITEL’s assets (core or non-core until an investor is engaged by NCP;
(d) The provision of adequate security to all NITEL/MTEL facilities to prevent any further asset-stripping.
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