Senate appeals to President Jonathan to implement BPE report

The Senate made the appeal while debating a bill for an Act to amend the Bureau for Public Enterprises (BPE) Act 2004 to provide for inclusion of host communities in sales of shares.
 
The BPE report was laid on the floor of the Senate in November 2011.
 
Deputy Senate President Ike Ekweremadu, who presided over plenary, noted that the Senate reached the resolutions after painstaking session.
 
``We know that our resolutions are not binding but you see the decisions we take in this Senate, especially regarding resolutions are well thought out and well researched.
 
``It is the amalgamation or views of very responsible Nigerians, and to that extent it is very persuasive.
 
“Any person who is ignoring the resolutions of this Senate is doing so at the expense of good governance,'' he said.
 
The sponsor of the Bill, Sen. Ifeanyi Okowa (PDP-Delta)  said the Bill sought to ensure better accountability and  amend the functions of the National Council on Privatization, to remove all forms of contradictions.
 
``The Amendment of the Public Enterprises (Privatisation and Commercialisation) Act is to provide further legislative frame work for improved accountability, provide appropriately for host communities and staff of public enterprises in the sales of shares of such public enterprises.
 
According to him, the amendment being proposed in the bill is in line with the resolutions of the Senate concerning the investigation it carried out on the privatisation of companies.
 
``Section 5 (3) of the Act proposed for amendment to provide for the inclusion of host communities. The amendment provides for not less than five per cent of the shares to be offered to Nigerians, to be reserved for the host communities of the public enterprises to be privatised.
 
Okowa said the import of the amendment was to enhance the security of the public enterprise to enable the staff of the enterprise and the host communities buy into the process of privatisation.
 
``The local economy will also be stimulated and the gains made would help to transform our communities.
 
“The challenges of local content and employment within such enterprises are more likely to be addressed by the communities as co owners.’’
 
Okowa said the amendment being sought to section 1(3) of the act would ensure that the National Assembly’s powers, as enshrined in the constitution to make laws were not infringed upon.
 
In his contribution, co-sponsor of the bill, Sen. Ahmed Lawan(ANPP-Yobe) noted that the bill was sequel to the investigation the Senate undertook on the activities of the BPE from 1999 to 2011.
 
Lawan, who chaired the Ad-hoc committee, said during the investigation, it was discovered that the public enterprises act of 1999 was flawed in about four ways.
 
``Section 1(3) gives the National Council on Privatisation (NCP) the powers to amend the first schedule. That is to say the distribution of power of public enterprise will be sold out or privatised. 
 
He also said the investigation discovered that BPE was spending its proceeds without reference to the National Assembly.
 
``In fact, we recommended punishment and sanctions for two of the officers who did that because those actions were against section 80 of the constitution. ’’
 
Lawan appealed to the President to use his discretion and implement the resolutions adopted by the Senate concerning the BPE report that was submitted to him.
 
``Mr President must ignore people who will always tell Nigerians that the resolutions we take here are only advisory and have no weight.
 
Sen. Isa Galaudu (PDP- Kebbi) in his contribution, said the amendments being sought to the act were in line with international best practices in privatisation.
 
Galaudu said it was only right that certain percentages of privatised companies were reserved for the host communities and the staff of the company.
 
He appealed to the executive to ensure that the resolutions reached by the Senate following its investigation of the BPE were not swept under the carpet.
 
On his part, Sen. George Akume (ACN-Benue) explained that though a privatised company should work, that had not been the case due to neglect of the law.
 
Akume expressed optimism that the amendment would address the issue, adding that it would also emphasis the need to cater for the host communities.
 
Sen. Ibrahim Gobir (PDP-Sokoto) in his contribution, stressed the need for the percentage for the host community to be raised to 10 per cent.
 
``The issue of the shares going to the company is very important and it should be raised to 10 per cent because the community can even make the company ungovernable by vandalising equipment.’’
 
Sen. Uche Chukwumerije (PDP-Abia) however, advocated that the share for the staff should be reviewed to 7 per cent and one per cent reserved for the senior staff.
 
Chukwumerije  appealed for caution while making reference  to host communities so that it was not only privatized oil companies that were involved but also tooth paste manufacturing companies in Abuja.