Then Federal Government approved N929 million as legal fees 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. This was disclosed by the Head of Public Communications, Bureau of Public Enterprises, Mr. Alex Okoh, in Abuja on Tuesday
He 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.”