Abuja — On May 8, 2009, the Nigerian Communications Commission (NCC) announced the winners of the controversial 2.3 GHz spectrum licenses bid where three firms emerged. The winners, according to the Commission were: Mobitel Nigeria Ltd, Spectranet Ltd and Multilinks Telkom Ltd.

The three companies, out of 40 applicants short-listed for the exercise, were able to met the 5-day deadline which opened on April 30, 2009 and ended at the close of banking business hours on Friday, May 8, 2009 to pay the fixed price of N1, 368,000,000 for each of the four slots on offer, bringing the total sum realized from the spectrum sale to N4,104,000,000 which automatically qualified them as winners of the three out of the four spectrum licenses on offer.

One of the applicants, Galaxy Wireless Ltd, did not pay the full fixed price for the slot, and therefore, did not meet the conditions for the offer of license.

The bid process is perhaps one of the most controversial biddings in the history of the telecommunication industry in Nigeria. Many stakeholders faulted the process including the Minister of information and Communication Dora Akunyi who supervises the sector.

Last week's Tuesday, President Umaru Musa Yar'adua ordered the cancelation of the bid process and called for fresh one, accusing the last process of violating the stipulated rules for the auctioning of the licenses.

The presidential order came at the heat of the controversy on who is right or wrong between the Minister of Information and Communications and the Executive Vice Chairman of the NCC Ernest Ndukwe on the licenses allocation when the Minister of Justice and Attorney Generals of the Federation Michael Aondoakaa said to have backed the process at which the NCC conducted the Bid round.

Some observers believe that the directives given to NCC to conduct fresh exercise may be is a result of some recommendations made by both Akunyili and the Economic and Financial Crimes Commission (EFCC).

In the Minister's letter to the presidency dated June 9, 2009, she said Dr. Ndukwe intended to favour some companies in the process as he has published in some national dailies in December 2008 indicating that "qualifying conditions for 2.3GHz licensing will be announced in due course", and the NCC did not meet its commitment in publishing the conditions, and by the time the licensing process started, many companies were not given chance to bid. The Minister's letter said: "In an attempt to legalise his illegality the EVC, Dr. Ndukwe quickly credited the money collected from the operators to Federation Account in spite of the directives that such should be refunded to the companies."

According to the Minister's letter the process was manipulated to favour some companies, and that is Mobitel that was said to have won the bid for 2.3GHz license. Mobitel, was granted a waiver on Spectrum fees to the tune of N242million.

Sources at the EFCC revealed that investigation is continuing as the agency has already found other spectrum waivers granted to some companies such as Cellcom, Reltel (now Zoom) and MTS in 2006 and these waivers could run into hundred of millions of Naira.

The EFCC source stated further that the agency has discovered fictitious contracts awarded to some companies and payment vouchers prepared in the names of the companies but the cheques for actual payment was made to staff instead of the companies, and the staff collected the cash and handed over the same to some management staff selected by Engr. Ndukwe.

Daily Trust gathered that some of the staff involved are under EFCC bail as the cash collected from the NCC's Account were in tens of millions. There were also reported cases of diversion of bank-interest payments to 'private pockets'. Ndukwe was also said to have awarded contracts to Zinox Computers and a sister company to the tune of over N3 billion around the last quarter of 2008, such award is under further investigation as it has fall short of due process and well beyond Mr. Ndukwe's approval powers.

At several interactions, the Head, Public Affair of the NCC, Mr. Rueben Mouka denied doing anything wrong in conducting the bid Round using that formula, although, he said the commission has decided not to join issues again on the spectrum allocation.

If the bid is reopened, there is every possibility that the old winners may still emerge or drop along the line. No matter where the pendulum swings, commentators say there is a need to follow due process and perhaps to involve experts. They also demand transparency and placing of national interest above and over primordial interest.