Bauchi Lists Benefits of Privatisation of Moribund Industries
Segun Awofadeji in Bauchi
The Bauchi State Government has declared that it would not back on the privatization of its moribund industries, which it described as the right move to revive the state’s economy and save them from total collapse.
Addressing a press conference at Government House, Bauchi, during the weekend, the Secretary to the State Government (SSG), Mr. Ibrahim Kashim, said that the state government would not be intimidated by the mischievous attack by the opposition All Progressive Congress (APC) on the ongoing privatisation of the industries.
Kashim said that the APC should condemn first the privatisation exercise of industries by the federal government than attacking the state government on its privatisation exercise. Kashim, who was a former director in the Bureau of Public Enterprises, denied that the state government use privatization as a facade to hand public assets to friends and associates of the state governor.
He noted that the industries that were enlisted for privatisation were in a final stage of collapse and running on obsolete equipment, hence the need for the state government to seek for their privatisation in the best interest of the state.
He said: “It is not a new thing for government to allow private sector to take over businesses in an event that it will not be able to manage them well.
“Government is convinced about the economic advantage of the arrangement and we have examined the investors’ level of commitment and what they offered for the value stake in the proposed companies, so we are appealing for understanding and support from the people of the state as the administration of Governor Bala Mohammed is determined to protect their interest in all policies and programmes.”
Kashim stated that the establishment of the Bureau for Privatisation and Economic Reforms is to serve as the policy and decision making body with regard to the privatisation and economic reform of state enterprises, transfer the management of all such enterprises to the bureau in the first instance and remove the interference in the management of state enterprises from line ministries, thereby ensuring transparency and to avoid conflict of interest in the affairs of enterprises.
He mentioned some of the functions of the bureau to include, advising government on the capital restructuring needs of enterprises to be privatized in order to facilitate good management of the enterprises, determined the political, economic and social objectives of privatisation of state enterprises and recommend to government the legal and regulatory framework for assets of state enterprises to be privatised.
The industries enlisted for the privatisation are Bauchi Meat Factory, Bauchi Furniture Company, Bauchi State Fertilizer and Blending Company, Galambi Cattle Ranch as well as the leasing of Zaranda Hotels, Wikki Hotels and Tours all in a bid to create job opportunities and improve economic activities in the state.
