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Business, Industry

Privatisation: Reps Investigate Compliance With Agreements

Posted: Mar 17, 2016 at 1:00 am   /   by   /   comments (0)

Ahmed Musa, Abuja

The House of Representatives yesterday resolved to probe all privatised or partially-privatised public assets with a view to finding the level of compliance with terms of agreements entered into between government and concessionaires.

The resolution followed a motion on notice calling the attention of the House to “the need to investigate the non-compliance with the terms of agreements by concessionaires and privatized/partially-privatized government companies brought by Hon. Gabriel Babatunde Kolawale.

Hon. Kolawole noted the uproar by individuals, staff and Unions of the Government-owned enterprises owing to concerns on the non-conformity to the terms of sales.

He said that the non-conformity to the terms of the agreements had caused the country enormous losses in income, owing to the non-remittance of appropriate taxes and other financial commitments agreed upon prior to the relinquishing of the assets by government.

He therefore prayed the House to mandate the Committee on Privatization and Commercialization to investigate all failed concessions, and the terms of outright sales and/or agreements of privatized enterprises, with a view to determining why some of the agreements failed and proffer solutions on how to avoid further failures and enhance the productivity and profitability of the affected enterprises, and report back to House within eight (8) weeks, for further legislative action

Hon. Nicholas Osai in his contribution to the debate concored with the prayer saying that “investigation would give us the detailed background of whatever agreement that had been signed prior to the sale or partial privatisation of these assets so that we can know who or what went wrong that’s responsible for the non-performance or compliance by those running these companies”.

Hon. Olajide Jimoh, from Lagos who also supported the motion said; “I want to commend the sponsor of this motion. All these are in attempt to shore up the productivity of the non-performing companies by making sure that what was agreed upon is done to the latter”.

“These are issues that are very important for this house to address, through proper investigation, therefore, this motion is in order and should be looked at for the implementation”, he said.

The motion was passed with the prayer adopted following a question preceding a voice vote as put by Speaker Yakubu Dogara and the motion was referred to committee on privatisation for further action.