The Managing Director, Nigerian Electricity Liability Management Company, Mr. Sam Agbogun, said on Thursday that the Power Holding Company of Nigeria had a pension deficit of N107bn.

He was speaking in a telephone interview with our correspondent in reaction to a demonstration by workers of the utility company against his appointment at the headquarters of PHCN, Zambezi Crescent, Maitama.

Agbogun, said his company was saddled with the responsibility of sourcing resources to fund the depleted pension fund and manage other liabilities like bills owed to contractors among others.

He explained that the pension fund, which was contributed by the workers over the years, was depleted by the management, which used it to run the system when funding by government was inadequate.

Work at the utility was stalled for nearly two hours on Thursday as PHCN workers staged a protest against Agbogun’s appointment, vowing that he would not be allowed to resume work as he was scheduled to.

Chanting solidarity songs, the workers, who were carrying placards, marched through the precincts of the PHCN headquarters.

The General Secretary of the National Union of Electricity Employees, Mr. Joe Ajaero, who led the demonstrators, said, “This man has boasted that he is coming to preside over the funeral of PHCN.�

Ajaero said Agbogun’s appointment was not on merit, alleging that he was sacked from PHCN because he was not competent, while due process was not followed in his latest appointment.

He said, “We want to know how he was appointed. Was the post advertised? Who were the members of the interview panel? Which PHCN board sat to approve the appointment?�

Ajaero argued that by the provisions of the Reform Act, NELMCO ought only to come into existence after the collapse of PHCN.

“You cannot manage the assets and liabilities of an organisation that is still in existence,� he said.

But Agbogun told our correspondent that the demonstrating workers were misinformed as his office had nothing to do with the disengagement of the workers or their benefits as that was the business of the Bureau of Public Enterprises.

He blamed the management of PHCN for the break down in communication, adding that they had the right information but failed to pass it on to the workers.

He explained that Section 22.1 of the Power Sector Reforms Act of 2005, which set up the Nigerian Electricity Liability Management Company, charged it to manage the stranded assets and liabilities of PHCN, after the unbundling of the utility transferred the core assets to the 11 successor companies. - Punch