GMD'S ADDRESS

ARMY WELFARE HOLDINGS LTD., MAJ. GEN. J. O. LARTEY DSS PSC(+) FWC FCA AT THE INAUGURATION OF COMMITTEE FOR MERGER OF NIGERIAN ARMY PROPERTY LTD. (NAPL) POST-SERVICE HOUSING DEVELOPMENT (PHD), POST SERVICE HOMES (SAVINGS AND LOANS) LTD. (PHL) ON 22ND, SEPTEMBER 2008.

“There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle than to initiate a new order of things”
Machiavelli
Protocol:

  1. You will recall that the Army Welfare Holdings Ltd. Was born out of the necessity to undertake the repositioning of NA Welfare related ventures in conforming to the ongoing transformation drive of NA. A major aspect of the mandate of AWHL is to achieve and maintain a most beneficial synergy among these entities by promoting enhanced efficiency and effectiveness in their management and operation.
  2. The process of realizing this vision has entailed a number of crucial measures which led to the restructuring and realignment of some existing or emerging entities. In the area of Housing and Property Development and Management alone, three companies, Nigerian Army Properties Ltd (NAPL), Post-Service Homes (Savings and Loans) (PHL) and Post-Service Housing Development Company (PHD) have evolved and are in full operation as at date.
  3. I must commend the doggedness and sense of resolve with which the staff and management of these companies have pursued the goals set for them and the results they have attained within the period of their existence in the current dispensation of change and transformation.
  4. Gentlemen, having performed to the best of their ability, and with the interest of the entire Nigerian Army focused on the success of the welfare ventures, a time of reappraisal of the performance of the entities are only proper and normal. Such steps are necessary features of change management in the kind of transformation the NA has embarked upon. A major outcome of this step was the consensus of opinion on the need to fortify the performance of the Group and the entities in the many areas, by eliminating the duplications that have become so glaring to the extent that they are now impending performance in the area the Army is investing and expecting much. The concerned companies will therefore have to be merged. Accordingly, this committee is being charged to work out the modalities for the merger to ensure that a more formidable outfit emerges at the end of the exercise. This assignment is very crucial to the responsibility of AWHL to transform the approaches to management of NA business and assets.
  5. I must let you know that you were carefully chosen as members of this important Committee by  virtue of your peculiar background and the belief that you have what it takes to help the NA achieve its vision as clearly stated in your Terms of Reference.
  6. Gentlemen, your assignment will require a very deep insight into the problems that necessitate this intended measure to which you are meant to proffer practicable solutions. For instance what options do we have for mitigating the excesses demonstrated in the companies being merged? Are there alarm systems to be activated to save the entity from ultimate failure?
  7. The essence of Corporate Governance is to enable us infuse the required checks and balances into our operations such that the over bearing tendencies, unnecessary rivalry and indiscipline exhibited by some of us could be curtailed. Nevertheless, our background as service personnel should offer us some attributes which would enhance our performance in the business and corporate environment. I believe we would not have arrived at this situation, if the management of the companies had taken to heart a due blend of models from our training background and contemporary business practices. The Committee should take cognizance of the following factors in fashioning out the new company:
          a.  Command Authority
          b.  Unity of command
          c.  Economy of efforts
          d.  Alert and alarm system
          e.  Checks and balances
          f.  Inter-company rivalry
          g.  Simplicity
  8. In blending the essence of command authority with the demands of corporate governance, we must be concerned with the demands of what is legally feasible. While exercising command we must be conversant with the responsibility imposed by the element of command authority, which entails the power we exercise over subordinates by virtue of our rank or assignment. It makes us responsible for organizing, assigning tasks, giving direction over all aspects of operations, ad maintenance of morale and discipline. Observing this tenets will help a great deal in checking a major problem which is being tackled in the NA Transformation programmes; the issue of undue inter service (in our case inter company) rivalry which manifests in the tendency to want to operate independently in pursuit of individualistic interests. This unwholesome trend and attitude leads to unnecessary dissipation of energy and wastage. This tendency is known to undermine collective capability as we may experience if we allow the trend to continue.
  9. Gentlemen, the foregoing scenario cannot be condoned. In fact, the essence of AWHL is to achieve the synergy that will eliminate this tendency. We are ready to take the challenge. One measure I believe your committee should think about introducing into the management of the new company is the idea of an executive chairman. This may even be necessary as part of the structure for AWHL companies. Indeed:
    “There is nothing more difficult to carry
    out, nor more doubtful of success, nor
    more dangerous to handle than to
    initiate a new order of things”
    Machiavelli
  10. I therefore charge you to take this assignment with all seriousness and commitment. You were all present when the Chairman of AWHL Board, the COAS related the concerns of the NA which led to the need to call for this merger. You therefore have a responsibility to ensure that the fears are duly addressed in your deliberations and ultimate report. The entire Army is waiting on you, gentlemen be informed from onset that your target date for submission of the Report will not be reviewed. Here is your opportunity to positively influence the future of the management of NA welfare assets. On our part, we shall support you to succeed in the task as it matters to all of us.
  11. It is on this note that, I have the pleasure to hereby inaugurate the Committee for the merger of NAPL, PHD and PHL. I wish you God’s guidance and good success in your assignment.

Thank you.

J. O. LARTEY
Major General,
GMD