By Okey Goodluck Nwafor, a Concerned Nigerian<\/p>\n
Now that the ICPC has filed charges against Alhaji Modibo Kawu, the
\nDirector General of the National Broadcasting Commission (NBC), and
\nPinnacle Communications, for allegedly conspiring to steal N2.5b under the
\nguise of leveling the playing field for DSO broadcast signal distributors;
\na number of issues remain unclear. The first major issue is how Mr. Modibo
\nKawu is still at his job as NBC DG, even after he has been investigated,
\nindicted and charged for fraud by the ICPC? Even though they are yet to be
\narraigned in court, and according to reports, the DG who has been boasting
\nthat this is their government and nothing will happen, and Sir Lucky
\nOmoluwa, Chairman of Pinnacle Communications, are making spirited efforts
\nto lobby senior administration officials to delay the arraignment and
\npossibly get political cover to force ICPC to quash the case. Besides, it
\nis fair to say that with the NBC DG remaining at his position, it is
\npossible for him not only to have the opportunity to tamper with evidence
\nvital to the trial, but also have the ability to intimidate witnesses,
\nsome of whom are currently NBC staff.<\/p>\n
It is asinine for Pinnacle Communications to say that the illegal payment
\nof N2.5b was meant to create a level playing field. Did the company not
\nbid for the license and in doing so not present evidence of its financial
\ncapability? Indeed, article 4a of the NBC and Digiteam Bid document, a
\ncardinal condition for licensing of the second national broadcasting
\nsignal distribution was for bidders to submit \u201cevidence of the company’s
\nfinancial capability to successfully accomplish the business projections
\nand fulfil the license terms and conditions must be demonstrated. The
\ninformation provided should cover a minimum five-year period following the
\naward of the license, and should include investment and expected return on
\ninvestment, detailed forecast balance sheets, income statements and
\noperating statements, associated financial plan and evidence supporting
\ninvestment forecasts.\u201d\u00a0 Furthermore, it is instructive that all the
\nbidders already knew that the government white paper had already approved
\nthe establishment of a government owned signal distributor to come out of
\nthe NTA. Therefore, Pinnacle cannot deny that it was not aware of the
\nexistence of NTA ITS on the playing field. Above all, the request for
\nfinancial aid or grant by Pinnacle Communications is the single most
\nprobative evidence that the company might have procured it license from
\nNBC by fraud; as it never had the financial capability it claimed at the
\nbidding stage to merit the grant of the license in the first place.<\/p>\n
It is important that the Buhari Administration, which prides itself with
\nthe mantra of fighting corruption, should take immediate steps to ensure
\nthat due process is followed and this matter is prosecuted to its logical
\nconclusion, unless of course, Mr. Modibo, the supposed impartial
\nnon-partisan broadcast regulator has officially joined the APC, and can
\nnow claim sainthood.<\/p>\n
Some groups have during the past couple of weeks taken adverts and
\nsponsored reports in newspapers to say that the prosecution of the current
\nDG and Pinnacle Communications would derail the digital switch over (DSO);
\nnothing can be further from the truth. Indeed if anything, if this illegal
\npayment is not prosecuted and dealt with, it would seriously impact
\nnegatively on the confidence of other private investors in the DSO value
\nchain.\u00a0 It can also be argued that the illegal payment suggests a far more
\ndangerous issue of regulatory capture by an operator who is able to coral
\nthe regulator to illegally funnel N2.5billion to it under the guise of
\nproviding a level playing field.\u00a0 Any serious regulator should know that
\nfinancial awards or grants are not given by regulator to level a playing
\nfield.<\/p>\n
Using money as a regulatory tool to achieve fair competition is strange,
\nself serving and definitely ill suited. A regulator should first determine
\nwho a dominant operator is, and how that dominance has affected the
\nplaying field and then recommend sanctions or other interventions like
\nmarket or territorial demarcation, etc. It is unheard of for a regulator
\nto make such huge payments to a licensed operator who won a competitive
\nbid in which the same licensee avowed commitment to meeting all conditions
\nincluding financial and technical capability to roll out full operations
\nin the market.<\/p>\n
In fact, the regulatory capture demonstrated by this illegal payment to
\nPinnacle would mean that NBC would take even more ridiculous steps to
\njustify its incestuous relationship with Pinnacle to the obvious detriment
\nof other licensees and operators in the industry, further jeopardising the
\nalready flailing DSO. This will set a very dangerous precedent which not
\nonly hurts the entire DSO, but also endangers further investment in
\nbroadcasting sector and Nigeria in general.<\/p>\n
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,…<\/p>\n","protected":false},"author":1,"featured_media":64603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-64602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n