BPE explains N1.45bn legal, consultancy fees

Following the outcry of how about N1.45billion was allegedly paid out as legal and consultancy fees, by the management of the Bureau of Public Enterprises, the BPE has come out to explain and justify the payments made.

Head of Public Communications, BPE, Mr. Alex Okoh, disclosed in a statement in Abuja on Tuesday, that N929 million paid as legal fees was for the liquidation of the defunct Power Holding Company of Nigeria (PHCN) in order to transfer liabilities in over 500 court cases from the PHCN to the Nigeria Electricity Liability Management Limited.

He also said that another N500m was approved for the Office of the Accountant General of the Federation to enable it to pay overtime to the workers that handled the payment of terminal benefits to the PHCN employees.

Okoh said, “The National Council on Privatisation at its meeting held on Thursday, May 9, 2013 considered and approved the award of a contract to Messrs J. K. Gadzama & Partners as the consultant, legal advisory services for the winding up of PHCN Plc in the sum of N929,613,188.94 only for a period of six months after obtaining a BPP ‘no objection’.

“The Office of Attorney General had earlier objected to the necessity of the procurement, but later withdrew its objection and endorsed the engagement of Messrs J. K. Gadzama & Partners for the legal advisory services vide a letter presented to the NCP ref: HAGF/BPP/2014/Vol.1, dated 17th of September 2014.

“Consequently, the council at its meeting held on April 16, 2015, finally approved that the BPE should immediately proceed to execute the contract with Messrs J. K. Gadzama & Partners as the consultant, legal advisory services for the winding up of PHCN Plc in the sum of N929,613,188.94 based on the ‘no objection’ earlier granted by the BPP.

“The legal consultancy is to novate the over 500 court cases pending against the PHCN to NELMCO and also to provide routes of title to purchasers of the PHCN non-core assets as well as wind down the PHCN among other terms of reference.”

On the payment of N500m to the Office of the Accountant General of the Federation, Okoh said it was not for consultancy services but to enable the OAGF to pay for expenses incurred in the process of paying the terminal benefits to the PHCN workers.

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