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Press Statement By The Strategic Committee Of The NLC on Privatisation and Concessioning 6 October 2006 - http://www.nlcng.org/ Concerned about the way government has executed its privatization and concessioning programmes, the Nigeria Labour Congress set up a Strategic Committee on privatization to examine the modalities and effects of the programmes on the core and sensitive public utilities. The committee notes that privatization and concession of public assets must not be approached from a doctrinaire perspective but on the need for Nigerians to have efficient access to the services these undertakings provide as a basis for an all-round development for the country. In furtherance of the above therefore, the Committee notes that while it recognizes the inalienable right of Nigerians to efficient and cost-effective, electricity, ports and telecommunication services, it believes the structure and ownership changes being carried out in the three sectors must be such that will guarantee a sustained performance of the three sectors. Regrettably, the Committee notes that there exists apparent deficit of transparency, caution, and consistency in the on-going exercises. For instance there is no fall-back position in the event of failure. The Committee notes that most of the processes cannot be said to be democratic or open. The committee observes that democratic institutions such as the National Assembly have no say in who is buying what and how. On the basis of the above, the Committee after a careful consideration of the on-going privatization of NEPA and telecommunications, the concessionings in the ports and the recent announcement by the government to sell off federal unity schools and other contemplated concessionings and privatisastion submits as follows: NEPA: The Committee believes and accepts that the unbundling of NEPA is within acceptable norms of business practice. However, the committee believes that the corporate entities of the components must possess demonstrable managerial and technical competence and the determination of this must not be by a cabal. In other words, the National Assembly and the Nigerian people must be involved in the exercise. This is more so because the assets of NEPA are of incalculable value to Nigerians. The Committee notes that the unbundled components of NEPA are not yet corporate [private or public]. This notwithstanding, the unions and management should determine the appropriate labour force and not BPE. The Committee believes that the status of their corporateness should substantially be determined by the National Assembly. NITEL The Committee believes that the process for making Transcorp the preferred buyer of NITEL is not based on competitive bidding which undermines a cardinal principle of the privatization exercise, more so when Transcorp has no known competence in the industry. In addition, Transcorp is now engulfed in ethical and moral controversies which have made the future of the company uncertain. In the light of the above therefore, there is need to restart the process of privatizing NITEL. Our position is informed by the need to have efficient and sustainable telecommunication services. In the circumstance, we demand that all NITEL employees be paid their outstanding salaries and allowances viz: July - September salaries, rent subsidy for 2006, leave and furniture allowances for 2006. These would create the basis for any meaningful and positive transition in the industry. CONCESSIONING OF THE PORTS Concessioning as a concept is known to be fraught with abuses and could be interpreted to imply using public asset for private profit. The Strategic Committee in the circumstance is not averse to measures aimed at improving efficiency, quick turn around and service delivery in our ports. The above notwithstanding, we are opposed to the scrapping of NPA as proposed in the Ports and Harbours draft Bill and the creation of two autonomous ports. One particular concern is that the names given to these ports are capable of promoting sectional particularism. In the prevailing situation it is not advisable to leave these two ports as separate and autonomous entities. We believe NPA should be left intact so as to co-ordinate and provide other vital services as well as handle the pension liabilities of staff. We note that the rush which characterized the concessioning of the ports resulted in:
In order words, government has acted in a way which is patently illegal. In view of the foregoing, we call on the government to halt the concessioning programme of the ports. We also invite the National Assembly as the custodian of the mandate of the people to intervene. The ports, telecoms and energy are so vital to the nation that their sale should not be executed in a hurry, especially by a government with a terminal date in sight. SALE OF UNITY SCHOOLS The most recent dimension of privatization without discretion is the decision of the federal government to sell off federal unity schools. The Committee notes that the argument driving the decision has not defeated the basis for their establishment. It is yet another attempt to strengthen our apartheid education system in which private and profit considerations are given preference over public good and trust. THE CHALLENGES This decision of government will further elongate the history of rich Nigerians who have left farming for business of schools with a motive for mindless profit. The shame of this all is that, those driving this process are themselves products of unity schools. The Committee hopes that it is not the swathes of land which these schools occupy that are the main attraction. The committee reiterates that public schools are critical to our existence. Accordingly, Labour in collaboration with its civil society allies will mobilize to resist this decision. CONCLUSION Privatisation and concessioning in most serious societies are not just economic issues, they are determined by fundamental social and political considerations. It is reason why the committee believes they should be located within the matrix of nation-building. The Committee cannot understand the undue hurry, contempt for procedure and due process, refusal to reckon with social and labour issues and the infinite expansion of the exercise even when the terminal date of this administration is in sight. The Committee believes it will be a futile effort to think that such haste and expansion will become a fait accompli for the incoming administration. We therefore call on the President to exercise restraint, for these are serious issues which have created problems for more stable democracies. This same inexplicable haste and disregard for procedures has led the government to retrench 35,000 core civil servants between May and now and an additional 500,000 public servants any moment from now if the statement credited to Mr. President in Japan is anything to go by. |
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