Senate Committee Wants Review Of BPE Budgeting Structure

The Senate Committee on Privatisation has called for the review of the Bureau of Public Enterprises (BPE) budgeting structure to reflect cost of transactions.

The Vice Chairman of the Committee, Senator Yahaya Abdullahi made the call during the BPEs 2019 budget presentation at the National Assembly, Abuja on Monday, April 1, 2019.

 He noted that since the funds generated by the Bureau annually are remitted wholly into the Federal Governments coffers, the government should adequately fund the Bureaus activities in general and the cost of the transactions which generate the revenue in particular.

  The Vice Chairman said that President Muhammad Buhari was determined to leave a lasting legacy in the economic development of the country through the power sector, explaining that reviewing BPEs budgeting structure to ensure that provisions for transaction costs are made in the Bureaus budget would ensure a more efficient privatisation process.

Such a process he reasoned would reflect the Presidents economic plans. 

Mr Alex Okoh, DG, BPE

Abdullahi pledged the Committees unwavering support to the success of privatisation in the country, stressing that achieving the Presidents economic plans required a joint effort between the Committee and the Bureau.

Consequently, he advised the Privatisation and Reforms agency to present before the Committee, an outline of the cost of transactions billed for 2019 for onward review with the Ministry of Budget and National Planning.

 Earlier, the Director General of the BPE, Mr. Alex A. Okoh acknowledged the Committees support which in the last four years, led to the successes recorded in the privatisation and economic development of the country.

READ ALSO:  FG REFORM PROGRAMMES NOW FOCUSES ON PPP —BPE

He informed the Committee that for the 2109 fiscal year, the Bureau plans to carry out transactions in the power sector and these include; the re-privatisation of  Yola Electricity Distribution Company, privatisation of Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited) and National Integrated Power Plants (NIPPs) for which an improved budget would ensure seamless transactions and greatly impact on  the performance of the Bureaus mandate.  

 Okoh lamented the disproportion between funds released and amount budgeted and the attendant draw backs on the mandate of the Bureau. According to him; in 2018, N2, 009 billion was allocated to the Bureau but only N1, 3191 billion was released. Most of which was for recurrent personal expenditure. 

On internally generated revenue, the BPE boss stated that the  Bureau remits 100%  of what it  generates into the Consolidated Revenue Fund (CFR) and it  does not retain any  proceeds. 

He maintained that the enhancement in BPEs budget would not only increase contributions to the nations treasury, it would also boost economic development through privatisation.

 

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