The controversy trailing the revocation of the sale of Nigerian Telecommunication Limited (NITEL) and its mobile subsidiary, Mobile Telecommunication Limited (M-Tel) to Transnational Corporation of Nigeria Plc (Transcorp) was yesterday laid to rest with the federal government and the management of Transcorp agreeing to bring in a new core investor.
This was part of the four-point agreement contained in a communiqu� signed by the Minister of Information and Communications, Mr. John Odey and the Group Managing Director of Transcorp, Mr. Tom Iseghohi after a meeting by both parties.
The two parties also agreed that the new core investor must be an industry top player with the requisite focus, technical expertise, managerial experience and financial capacity necessary for turning around NITEL.
A presidential source said yesterday�s agreement tallied with what Transcorp had agreed with President Umaru Yar�Adua, prior to last weekend�s bungling of the announcement by Odey on the intent of government for the telecommunications firm.
The communiqu� reads: �The Federal Government and Transcorp representatives met this morning on NITEL/M-TEL and agreed to do everything possible – following due process and rule of law – to resuscitate NITEL/M-TEL into a viable and profitable world class telecommunications company providing quality service to the Nigerian public.
�To bring a new core investor that is an industry player with the requite focus, technical expertise, managerial experience and financial capacity to take controlling shares in NITEL/M-TEL. The new core investor will emerge through an open and transparent process.
�To reconfirm the earlier mutual agreement between government and Transcorp for both to relinquish shares sufficient to give comfort and controlling interest to the new operator/investor consistent with the December 2007 agreement.�
The two parties said the decisions taken are in the best interest of the industry, stakeholders and the Nigerian people.
However, Transcorp�s Vice President, Communications, Adedayo Ojo, explained that no agreement was reached on the percentage of shares to be relinquished to the new core investor.
He said another meeting would soon be held during which both parties would agree on what percentage that will go to the new core investor.
Also yesterday, workers of NITEL besieged the Radio House premises, venue of the Transcorp/FG meeting, where they condemned alleged efforts by Transcorp to retain its interests in NITEL.
The workers numbering several hundreds chanted solidarity songs, demanding Trascorp hands-off NITEL.
In a letter addressed to the President Yar�Adua and distributed to newsmen, the protesting workers said Transcorp should back out completely and should not benefit from the restructured transaction planned for NITEL �because it has not shown any competence in the management of a telecommunications company.�
They urged the federal government to sue Transcorp for acquiring NITEL under falsehood and violating the terms of the agreement which they entered into with the federal government.
Following last weekend’s mis-communication by the Minister of Information and Communication, four reputable telecom firms, Telkom and Vodacom, both of South Africa, Orascom of Egypt and France Telecom were reported to have already indicated interest in taking over the troubled national carrier.
Feb232008