By Okey Goodluck Nwafor, a Concerned Nigerian
Now that the ICPC has filed charges against Alhaji Modibo Kawu, the
Director General of the National Broadcasting Commission (NBC), and
Pinnacle Communications, for allegedly conspiring to steal N2.5b under the
guise of leveling the playing field for DSO broadcast signal distributors;
a number of issues remain unclear. The first major issue is how Mr. Modibo
Kawu is still at his job as NBC DG, even after he has been investigated,
indicted and charged for fraud by the ICPC? Even though they are yet to be
arraigned in court, and according to reports, the DG who has been boasting
that this is their government and nothing will happen, and Sir Lucky
Omoluwa, Chairman of Pinnacle Communications, are making spirited efforts
to lobby senior administration officials to delay the arraignment and
possibly get political cover to force ICPC to quash the case. Besides, it
is fair to say that with the NBC DG remaining at his position, it is
possible for him not only to have the opportunity to tamper with evidence
vital to the trial, but also have the ability to intimidate witnesses,
some of whom are currently NBC staff.
It is asinine for Pinnacle Communications to say that the illegal payment
of N2.5b was meant to create a level playing field. Did the company not
bid for the license and in doing so not present evidence of its financial
capability? Indeed, article 4a of the NBC and Digiteam Bid document, a
cardinal condition for licensing of the second national broadcasting
signal distribution was for bidders to submit “evidence of the company’s
financial capability to successfully accomplish the business projections
and fulfil the license terms and conditions must be demonstrated. The
information provided should cover a minimum five-year period following the
award of the license, and should include investment and expected return on
investment, detailed forecast balance sheets, income statements and
operating statements, associated financial plan and evidence supporting
investment forecasts.” Furthermore, it is instructive that all the
bidders already knew that the government white paper had already approved
the establishment of a government owned signal distributor to come out of
the NTA. Therefore, Pinnacle cannot deny that it was not aware of the
existence of NTA ITS on the playing field. Above all, the request for
financial aid or grant by Pinnacle Communications is the single most
probative evidence that the company might have procured it license from
NBC by fraud; as it never had the financial capability it claimed at the
bidding stage to merit the grant of the license in the first place.
It is important that the Buhari Administration, which prides itself with
the mantra of fighting corruption, should take immediate steps to ensure
that due process is followed and this matter is prosecuted to its logical
conclusion, unless of course, Mr. Modibo, the supposed impartial
non-partisan broadcast regulator has officially joined the APC, and can
now claim sainthood.
Some groups have during the past couple of weeks taken adverts and
sponsored reports in newspapers to say that the prosecution of the current
DG and Pinnacle Communications would derail the digital switch over (DSO);
nothing can be further from the truth. Indeed if anything, if this illegal
payment is not prosecuted and dealt with, it would seriously impact
negatively on the confidence of other private investors in the DSO value
chain. It can also be argued that the illegal payment suggests a far more
dangerous issue of regulatory capture by an operator who is able to coral
the regulator to illegally funnel N2.5billion to it under the guise of
providing a level playing field. Any serious regulator should know that
financial awards or grants are not given by regulator to level a playing
field.
Using money as a regulatory tool to achieve fair competition is strange,
self serving and definitely ill suited. A regulator should first determine
who a dominant operator is, and how that dominance has affected the
playing field and then recommend sanctions or other interventions like
market or territorial demarcation, etc. It is unheard of for a regulator
to make such huge payments to a licensed operator who won a competitive
bid in which the same licensee avowed commitment to meeting all conditions
including financial and technical capability to roll out full operations
in the market.
In fact, the regulatory capture demonstrated by this illegal payment to
Pinnacle would mean that NBC would take even more ridiculous steps to
justify its incestuous relationship with Pinnacle to the obvious detriment
of other licensees and operators in the industry, further jeopardising the
already flailing DSO. This will set a very dangerous precedent which not
only hurts the entire DSO, but also endangers further investment in
broadcasting sector and Nigeria in general.