‘Why BPE’s nominees are on board of privatised power firms’

The Acting Director-General of the Bureau of Public Enterprises (BPE), Dr. Vincent Onome Akpotaire has explained that the choice of the bureau’s staff as alternate directors on the boards of privatised power successor companies in the country is to checkmate the investors and not for pecuniary gains as it is erroneously believed.

Declaring open a one-day Corporate Governance Training for the Alternate Directors and other staff of the Bureau in Kaduna on Saturday, May 21, 2016, Akpotaire said that as the agency that superintended and executed the power reform and privatisation, its staff were better placed to sit on the Boards of the power companies to check their activities.

He said the training became necessary to update the Alternate Directors and other staff of the Bureau involved in monitoring of privatised enterprises on modern trends in monitoring; adding that the Bureau under his leadership would focus on such trainings and general capacity building of staff.

The BPE helmsman charged the Alternate Directors to always live above board to justify the rationale behind their inclusion on the Boards.

In their joint presentation in a paper entitled: Corporate Governance and Responsibilities of Alternate Directors, Messrs Ayodele Oni and Ayo Sotinrin of the Nigeria Infrastructure Advisory Facility (NIAF) said that Corporate Governance is concerned with the process by which corporate entities are governed in order to ensure best practices and allowing the entities to maximize profit but not at the expense of the public.

They added that in developing a corporate governance framework, it is pertinent that same is anchored on international best practices and that the Alternate Directors are duty bound to act in the bonafide interest of the company even as they should not allow their personal interest to conflict with that of the company.

Mohammed Wakili, in his paper entitled: Building Blocks of MYTO and Historical Example, harped on the need for continuous Government’s support in alleviating some of the liquidity challenges in the power industry and the need to honour the sanctity of all privatisation contracts.

In his presentation: Minority Shareholders Rights and Directors’ Duties under The Shareholders Agreement and Companies & Allied Matters Act, Chudi Nelson Ojukwu, a Certified Utility Regulation Specialist and former Director, Academics and Lecturer at the Nigerian Law School explained the duties of directors under CAMA.

He said every board of directors creates a governance culture which is referred to as a pattern of belief, traditions and practices that prevail when the board convenes to carry out their duties and that Board must develop a culture of accountability and engagement.

Ojukwu warned that a Director must not make secret profits, gain unnecessary benefits or misuse corporate information, but must exercise his powers and functions in good faith and the best interest of the company, and must exercise the care, diligence and skill of a prudent director.

The Project Manager (Power) in the Bureau, Mr. Amaechi Aloke, speaking on the topic: India’s Power Sector Reform and Privatisation – A Case Study of New Delhi DISCO Privatisation, said power sector reform can provide a win-win situation for all stakeholders and that Nigeria’s power sector reform was designed after a careful study of reforms elsewhere subject to local circumstances to ensure the best possible outcome for Nigerians.