Transnational Corporation of Nigeria (TRANSCORP), core investor in the Nigeria Telecommunications PLC (NITEL) said its decision to send NITEL management staff on administrative leave is part of its critical initiative to return the company to profitability.
It also carried out that action in order to assure a fair and equitable valuation prior to sale to core investors.
The company said in a release that it is difficult to undergo any transformation and return NITEL to growth and profitability due to corporate governance issues on the Board and Management of NITEL.
Transcorp at the weekend asked the management of the moribund NITEL to proceed on administrative leave with assurance to be paying their salaries and other benefits as and when due. The company said the directive is different from sack.
The statement signed by the company secretary, Alhaji Mohammed Bubba said: “In view of the criticality of the need to reposition NITEL and in order to ensure timely execution , it is imperative that both the board and the management of NITEL are aligned on the goals and processes for achieving set targets.”
The statement added that in practical terms, it has become clear that key members of the erstwhile representatives of Transcorp on the NITEL board and management were not aligned with TRANSCORP management on the way forward.
Transcorp said over the last several months, it has made great progress in developing transformation plans to return NITEL to prominence and to ensure a successful sale of 51 percent to a new investor.
“Unfortunately, due to obstacle from the board and management of NITEL, it become impossible to go from plans to implementation of initiatives that will result in positive changes at NITEL.
“If nothing is done, NITEL’s operation will continue to deteriorate and positive relationship we are building with employees will be lost. To prevent further deterioration of NITEL, on Friday 27th of June 2008, Transcorp excised its legal rights… to begin aggressive restructuring on the Transcorp representation on the NITEL’s board,” the statement added.
“These changes will firmly put Transcorp in control of the management and operations of NITEL as intended by the share purchase Agreement and the Share Holder’s Agreement”, it added.
Source: Daily Trust
Abby Wakama
