The National Council on Privatisation (NCP) has approved ‘guided liquidation’ as the strategy for the privatisation of Nigerian Telecommunications Ltd (NITEL) and its mobile arm, M-TEL, in view of the huge liabilities of both companies.
The Bureau Of Public Enterprises (BPE) revealed in a statement yesterday that the council had directed the management of Nitel and Mtel to submit detailed financial reports and other relevant information on the proposals for the resuscitation of both companies to the technical committee of the NCP.
Recall that BPE in June last year, terminated the sale of Nitel to Omen International Consortium, and since then nothing has been heard of the privatisation process.
At its first meeting for 2012, the Council approved that the technical committee and legal committee, two standing committees of NCP, work closely to determine the modalities for handling Nitel/Mtel’s guided liquidation, BPE said.
The Bureau added that the technical committee have been tasked to consider the submissions by Nitel/Mtel management and submit its recommendations to the next meeting of NCP.
The committee had recommended that ‘guided liquidation’ should be adopted as the strategy for the privatisation of NITEL/MTEL in view of the huge liabilities of both companies and that there was no viable financial alternative presented by the management of Nitel/Mtel.
The Ccouncil supported the recommendation of the committee that opted for ‘guided liquidation.’
BPE said the Council has also directed that all liquidators that have unresolved disputes with the Bureau be excluded from the process for the appointment of a liquidator for the Nitel/Mtel transaction.
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