NCP to Revisit ALSCON Sale
S/East ranks least in share purchase
From Cletus Akwaya in Abuja
The National Council on Privatisation (NCP) may have decided to wade into the lingering controversy over the privatisation of the Aluminium Smelter Company of Nigeria (ALSCON), Ikot Abais, Akwa Ibom State.
A meeting of the NCP slated for early next month may take the final decision on the matter.
Special Assistant to the President on Bureau for Public Enterprises (BPE) Matters, Dr. Sunday Onuoha, dropped this hint yesterday at a press briefing in Abuja saying, "As impartial arbiter, we shall bring our impartial view."
Onuoha who was responding to a question on alleged adverse consequences of the transaction on the integrity of the nation's privatization programme said what the NCP was doing at the moment was to get back to the drawing board adding, "we are not disqualifying anybody."
Onuoha noted that the Federal Government owed citizens responsibility to be transparent in all its dealings just as he said government's decision to revisit the transaction was based on the "need to arrive at a decision that would ensure the completion and profitable operation of the company as well as guarantee jobs of workers".
"Mr. President wants an honest and transparent process, the President has asked BPE to go back to work," he stated.
He, however, distanced Obasanjo from any of the companies seeking to acquire the aluminium plant saying, it would have been unnecessary for the BPE to go through the tedious process it did in the selection of a core investor if the president had any interest in the plant.
"If Mr. President is interested in a particular company, he won't let it come to the open. He wouldn't have allowed us to spend the kind of money we have spent to go through the rigour of the process".
The BPE had July 9, withdrawn the core investor status of BFIGroup, the American company which after emerging bid winner June 14, failed to pay 10 per cent of the $410 million bid price it offered for 77.5 per cent of ALSCON shares within the deadline.
But Chairman of the Group, Dr. Reuben Jaja, has protested the decision to both President Olusegun Obasanjo and the National Assembly to disqualify his consortium, alleging that he was unfairly treated in the transaction. Specifically, Jaja claimed in his petition that he was frustrated from signing the share purchase agreement and denied extensiuon of time to complete the payment documentation.
Director General of BPE, Dr. Julius Bala who briefed newsmen Monday, in his office said Government had commenced fresh negotiations with other investors especially on the share purchase agreement (SPA). Although Bala did not disclose the identity of the new investors. THISDAY checks revealed that a three- man negotiation team of the Federal Government had re-engaged Rusal/Dayson Group, the Russian firm initially disqualified for making a conditional bid.
Commenting on the status of BFIGroup, Onuoha said the "company you have just mentioned (BFIGroup) have not kept to the agreement and they are not in doubt that they have circumvented the process. We are not going to do anything on sentiment. If we do anything on sentiment, Nigerians will ask questions and posterity will judge us".
Onuoha disclosed that from analysis of the participation of the geo-political zones in share purchase during the first phase of privatization exercise, the South East and South/South ranked least with 12 per cent while North East participation was 13 per cent, North Central 14 per cent, South West, 22 per cent and the North West 27 per cent.
"Disturbed by these statistics and guided by patriotism and the need to carry every section of the country along in the on-going reforms of government, especially the privatization programme, both Mr. President and the Vice President directed that in addition to the on-going state enlightenment tours, special focus should be given to the South East geo-political zone to galvanise the Indigbo to evolve a new and positive orientation towards the privatization programme," he said.
In the light of this, he said President Olusegun Obasanjo had approved a special consultative/ enlightenment forum from August 25-27 for all the South East states in Enugu.
Onuoha also disclosed that following his intervention, the management of the NICON Insurance Plc. and BPE have agreed to resume discussions on the issues which stalled the planned privatization of the foremost insurance company in 2003.
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