New Generation Consortium had last February emerged the preferred bidder in yet another attempt by BPE to offload the comatose pioneer national telecom carrier.
The Consortium had bided to acquire Nitel and it mobile arm for US$2.5 billion (about N375 billion).
The process was later suspended following allegations of irregularities concerning the opening of financial bids for the privatisation of Nitel and M-tel, which was held in February in Abuja.
President Jonathan has approved that New Generation Telecommunications Consortium pay a bid security of US$750 million as a pre-condition for the issuance of an offer letter in its bid to acquire Nitel and M-tel.
In accordance with the provisions of the Requests for Proposal, the bid security sum is to be paid within 10 calendar days from the date of issue of a demand letter from the BPE.
The balance of the bid amounting to US$1, 750 million should be paid within 60days from the date of the issue of an offer letter.
The National Council on Privatisation (NCP) had at its meeting of March 12 set up an eight-member ad-hoc committee under the chairmanship of the Attorney-General of the Federation to review the Nitel/ M-tel sale transaction.
The committee found that the transaction complied strictly with due process as outlined in the BPE’s Procedures Manual and that necessary approvals were obtained through the Technical Committee and the NCP at every stage of the transaction.
President Jonathan also approved that staff entitlements and outstanding salaries of all employees of Nitel/M-tel be paid.
The President’s decision was based on the recommendation of the Presidential Task Force on Nitel/M-tel Labour Restructuring Taskforce which was tasked with addressing the issue of outstanding salaries and allowances owed the workers.
SIMEON OGOEGBULEM in Abuja, Nigeria
