Transnational Corporation of Nigeria Plc (Transcorp) yesterday debunked rumours that are making the rounds that there were plans to sell SAT3.
Following lingering problems at the Nigeria Telecommunications (NITEL), all members of the management staff were on Monday ordered to proceed on compulsory administrative leave.
Transcorp had earlier explained that the directive was to allow the new board “to restructure the Nigerian Telecommunications (NITEL) properly and prepare it for the eventual handover to a new core investor”.
There have been speculations that the restructuring exercise at NITEL was to sell SAT3, but Transcorp has come out to refute such speculations.
The Head of Corporate Communications at Transcorp, Mr. Adedayo Ojo, described those behind the rumours as detractors who do not want the management to focus on the resuscitation mission of NITEL that it has embarked upon.
Ojo, who spoke to LEADERSHIP, particularly challenged anyone with a proof to make it public.
“Transcorp has its plan to revive the ailing institution, and does not have any plan towards selling SAT3 after it has invested huge amount of money into it to function properly. We challenge anyone who has any information to prove the sale of SAT3 to publish it,” he dared.
Transcorp has made attempts to clarify issues, especially as they relate to SAT3.
These include that: Transcorp has never attempted, and has no plan to sell, lease or concession the SAT3 gateway; SAT3 is being managed by NITEL employees, and no one else; key NITEL management, including SAT3 management, are working closely with Transcorp to create a transformation approach to restore the revenue potential of the company.
Transcorp, however, observed that despite some progress made so far in order to transform NITEL, critical changes that are required to return it to growth and profitability have become impossible.
It explained that this is largely “due to corporate governance issues on the board and management of NITEL”, adding that to fix those issues, “it became necessary to initiate critical changes in the representation of Transcorp on the board and management of NITEL”.
In a back-up statement, Ojo explained that since the take-over of NITEL, Transcorp has ensured that the company is working well, adding that Nigerians and the staff of NITEL can attest to the fact that SAT3 is also working well now.
Mr Ojo also pointed out that as a result of the ongoing restructuring of NITEL, Transcorp’s shares have been on the rise.
For example, trade at the Nigeria Stock Market recently saw value of the company rose from N.280 to N3.30 as at Monday this week. To capital market analysts, this was a sign of customer confidence in the company.
Throwing more light on why it had to restructure the board, Transcorp wrote: “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. Whereas Transcorp is concerned with a speedy implementation, it was clear that some board members and management staff had conflicting agenda.”
Determined not to let NITEL go the way of Nigeria Airways, Transcorp observed that if nothing was done, NITEL’s operations would continue to deteriorate, “and the positive relationships we are building with employers will be lost.”
The statement further noted that the initiatives by Transcorp to prepare NITEL for sale have attracted pleasant reactions amongst employees. In what can be described as a celebration mood at NITEL head office Abuja, most employees of the organisation were seen together, discussing the issue of the stepping down of the erstwhile Chairman, Mr. Ferdinand Alabraba, and the administrative leave of some senior management staff which took place early this week.
It will be recalled that Mtel and NITEL lines have started working in Abuja as a result of the rehabilitation work done recently in Abuja, Enugu, Benin and Port Harcourt.
Informed sources also disclosed that the new development is a challenge to the employees in terms of orientation and work ethics if NITEL must compete favourably.
“Transcorp has not only succeeded in Mtel but has also ensured that NITEL’s back bone that was damaged has been fixed alongside with the SAT 3 fibre optic cable, indicating that Transcorp is very serious with its investments. Transcorp will be focused on delivering the promise of a profitable NITEL,” added Ojo, who commended the employees of NITEL for accepting the transformation programmes.
Source: Leadership
