OPERATIONAL OBSERVATIONS AND SUGGESTED SOLUTIONS

Introduction
I resumed on the 1st May 2023 at the base, in the capacity as the AGM Business Operations. And I
aligned immediately with Justina Okoro on the Asa North-Ohaji south Project workshop kicking off
on the 2nd May in Spdc IA. The site re-entry workshop took the whole week, reviewing the scope,
splitting and signing off the agreed scopes by the AAJV partners, identifying subcontractors, engaging
them together with spdc contract holders to firm up their scope description and development. It has
been resuming in shell and closing daily by 5pm. This work continued in the Base through out
Saturday to get ready for the commencement of negotiation that supposed to commence on the
Tuesday of this week. On Monday night, the GM Commercial set up a meeting with the business
team for alignment. Where I was formerly introduced and She emphasized on the need to get
business as possible for the survival of this great establishment.

But on Tuesday afternoon, I was conducted through our yard by Justina and Osifo, and I was
seriously concerned about the present situation of this great company. which I tried to summarized
below;

1. Base office/Yard was closed down

2. The community shut the Fabrication yard in woji,
3. Equipment were though well-arranged looked abandoned
4. Psychological effect on the workers morale
5. Dent corporate image of Alcon- as everyone is saying Alcon is not operational and they are
not having staff and spdc said they can’t access their base; thank God we address that in the
spdc workshop.
6. Because of workers in hibernation, certifications are not renewed which might have negative
impact on the bidding process but not unsurmountable.
7. No back support for the few projects currently ongoing
8. Mobilizing for a new project especially the Assa North is practically impossible except there
is an immediate intervention.
9. Equipment were outside at various non-operational project sites not being accounted for at
the moment e.g. Asaba road construction project.
10. Using the Base gen set may not be economical for now, a smaller gen set would have been
better to safe some fuel cost. We located one 25kva in the yard, will talk to osifo to know if
using it will be realistic.
11. I couldn’t notice any CCTV presence at the Base

From my findings I discovered;

a. Corruption plays a major role in getting us into the present situation coupled by the
selfishness of the union leaders.
b. Ineffectiveness, Covid 19, project mismanagement, coming from compromising attitude of
people in operational authority has led to the present high financial mess that brought this
giant of a company to its kneel.
c. Workers union not helping matter has complicated the already heated polity.
d. Authority given to fin. managers / site management are being abuse in grade A
e. Information security was highly compromised
f. Because of the glorious size of Alcon, order/instructions get extinct along the line without
being carried out or outrightly violated without any consequences.
 g. Discipline wasn’t enforced.
h. Overstaffing and no proper closure of projects. Proper Documentation are not followed.
i. Litigation from Vendors and former staff almost keep the Company lawyer always busy who
will be happy to reap us off because of professional fees attached for his interventions.
j. Workers are owned salaries including ghost workers, so also pensions
k. Community are being owned
l. Banks were owned, that pushed us into invoice partnering, hence loosing a percentage of
our earnings.
m. Contracts were subcontracted because of lack of operational funds
n. Vendors were owned
o. Because of these present situations on ground, we are not having grip on the number of our
assets in term of equipment in our project sites and no one responsible for anything since
most of the staff are in hibernation while some even left with company properties e.g
Laptops.

In line with information available to me as a new comer, in this situation, I will like to propose some
recommendations;
a. Corruption plays a major role in getting us into the present situation coupled by the selfishness of the
union leaders.
Recommendations;
 re-orientation of the new Alcon staff and union leaders by highlighting its effect on the
overall staff take home. Taking into consideration that contract is never like before.
 Empower the internal Audit department, protect and increase its line of reporting.
 punitive measure for corruption to zero tolerance.

b. Ineffectiveness, Covid 19, project mismanagement, coming from compromising attitude of
people in operational authority has led to the present high financial mess that brought this
giant of a company to its kneel.
Recommendations;
 re-orientation of the new Alcon staff and union leaders by highlighting its effect on the
overall staff take home. Taking into consideration that contract is never like before.
 Empower the internal Audit department, protect and increase its line of reporting.
 punitive measure for corruption to zero tolerance.
 Line managers are indicted in ineffectiveness and mis-management under their watch.

c. Workers union not helping matter has complicated the already heated polity.
Recommendations;
 re-orientation of union leaders by highlighting its effect on the overall staff take home.
Taking into consideration that contract is never like before.
 Develop good relations with the union leaders, reward executives on monthly basis. ask
them to suggest punitive measures when channeling the new path for the new Alcon.
 Reward and publicize good workers often

d. Authority given to fin. managers / site management are being abuse in grade A
Recommendations;
 Allow the audit department to do their due diligence.
 Change out the1st level and 2nd level leaderships, reorientate the rest of the account staff.
  Use one or two as a legal example, involve EFCC and co, that will send the message round
the rank and file of the company.
 every audit dept staff that suppose to discover the fraud must not be spared.
 Reward and publicize good managers often
 Send unscheduled audit team to site
 Encourage whistle
e. Information security was highly compromised
Recommendations;
 Manage information security.
 Develop a method for your own information management.
 Allow the audit department to do their due diligence.

f. Because of the glorious size of Alcon, order/instructions get extinct along the line without
being carried out or outrightly violated without any consequences
Recommendations;
 Break up Alcon into independent units for effective management of Resources (manpower
and equipment)
 Encourage and empower each unit to be a conglomerate of their own, generate fund to
manage their overheads while the management report to Alcon as Affiliate company.
 For them to be free not carrying the financial burden of Alcon, i.e. having their own name,
bank account etc(can even be an invoicing partner to Alcon if need be)
 A Business Consultant will be needed to advise the Board for this to happen. And the legal
and financial implications.

g. Discipline wasn’t enforced.
Recommendations;
 Enforce discipline, no one is above the law
 Let punitive and reward s be added to the workers hand book and pasted on notice boards.

h. Overstaffing and no proper closure of projects. Proper Documentation are not followed.
Recommendations;
 Allow Audit dept to do their due diligence monthly.
 Managers justify their staff strength on monthly basis.
 Ghost worker discovery is punitive by dismissal for the line manager and the line supervisor.

i. Litigations from Vendors and former staff almost keep the contracted Company lawyer
always busy who will be happy to reap us off because of professional fees attached for his
interventions.
Recommendations;
 Allow the company lawyer to handle issues and reduce litigations to barest minimum.
 Let it be included in Alcon Purchase Order terms & condition of contract; that before any
form of litigation, arbitration is first of all be carried out by Alcon company lawyer, when
the differences cannot be resolve in good faith, litigation can occur. (Subject to legal code of
conduct, but I believe am allowed to put my own conditions in my contract, after all spdc
did theirs to protect themselves.)
 Company lawyer to read every contract and advise adequately before issuing any contract;
or better still having a template for different level of contract sum.
 j. Workers are owned salaries including ghost workers, so also pensions
Recommendations;
 Management must ensure workers’ salaries are paid as per time due to enable them have a
grip on the staff and to enable workers high morale and to enable honesty and enforce
discipline.
 Audit dept to do their due diligence to curb ghost worker by unscheduled site visit /audit.
 Any manager/supervisor that employ staff without due diligence and justification bears the
cost.
p. Banks were owned, that pushed us into invoice partnering, hence losing a percentage of our
earnings.
Recommendations;
 Successful restructuring of Alcon can solve this (need a Bus, Consultant for advice)

q. Because of these present situations on ground, we are not having grip on the number of our
assets in term of equipment in our project sites and no one responsible for anything since
most of the staff are in hibernation while some even left with company properties e.g
Laptops.
Recommendations;
 Raise a team do the inventory at various sites and to find a way to secure this equipment
at various sites especially the one in Asaba axis.

Addendums;

Whatever discussion to be engaged must be engaged now as soon as possible to allow operations to
commence. Even though skeletally.

Company assets are its staff base, Restore back selectively, some old, honest, professional and exceptionally
good staff over ten years, I will suggest 2 in each dept, establish and reorientate them and stylishly
commence the training of the new generation of Alcon staff.

Every staff sign off letter of new covenant; its not going to be business as usual.

Commence the process of image making

Flush out site project managers and keep site supervisors, and engage new site project managers

Going forward, improve on the rewarded system, It’s not mandatory that every site collect end of contract
bonus; its not in our bidding value sum, so where is this money coming from, but any site that beat its
schedule will be handsomely rewarded.

This is done in good faith, maybe it may add value to the solution you are already trying to implement in
solving this situation on ground.

My Best Regards,

Engr. Sola Olumilade

AGM Business Operations, Alcon.

11/5/2023