We’ll ensure privatised enterprises perform well – FG

The Federal Government, on Friday, pledged to support all privatised enterprises across the country in order to enable the firms to perform optimally.

It made the pledge through its Bureau of Public Enterprises at the handover of the Certificate-of-Occupancy of Ikorodu Bricks and Clay Limited to the core investor, Continental Project Development and Supplies Ltd, in Abuja.

The Director-General, BPE, Alex Okoh, who handed over the C-of-O to the core investor, said in a statement issued by the bureau that the government would ensure that the objectives of privatisation were met.

“The Federal Government is committed to providing the enabling environment and necessary support for all privatised enterprises in the country to perform optimally so that the objectives of privatisation would be realised,” Okoh was quoted as saying.

On the handover of the C-of-O to Continental Project, the BPE boss charged the investor to revive the company and bring it to profitability in the shortest timeframe.

The company’s Group Chairman, Albert Awofisayo, said the firm would abide by the reviewed Share Purchase Agreement to resuscitate the company and appealed to the government to intervene in the supply of electricity.

Ikorodu Bricks and Clay Company, wholly owned by the Federal Government, was privatised through a core investor sale in 2006.

The company was acquired 100 per cent by CPDSL through a competitive bidding process.

Through the post-transaction monitoring exercise, it was discovered that IB&CL stopped operations few years after privatisation due to the core investor’s inability to raise capital to finance the operations and the company was listed among the non-performing enterprises.

CPDSL said in the quest to identify the challenges inhibiting performance, its inability to raise capital to finance its operations was a challenge, adding that it approached the BPE to secure C-of-O for the company to enable it to secure funds to resuscitate the firm.

The bureau consequently approached the Federal Ministry of Works and Housing to secure C-of-O for the company and the FMWH requested the company to pay for the ground rent for the facilitation of the title document.

The bureau intervened and requested for a waiver to enable the company secure necessary funding to turn around the company to profitability.

According to BPE, the President, Major General Muhammadu Buhari (retd.), granted the waiver of the fee and directed the bureau to ensure that the core investor revived the company after the waiver was granted.