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B N W: Biafra Nigeria World News |
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ALSCON: Confusion as Obasanjo rejects BFIgbenga oguntimehin, abuja CONFUSION now trails the sale of Aluminium Smelter Company of Nigeria (ALSCON) as President Olusegun Obasanjo has reportedly refused to approve BFI Group of the United States as the company�s preferred bidder. The Bureau of Public Enterprises (BPE) had written to the Chairman of the National Council on Privatisation, Vice-President Atiku Abubakar, for his consent on the preferred bidder. Sources claimed the President cancelled the preferred bid of BFI Group because of his earlier promise to Russia�s President Vladmir Putin that ALSCON would be given to Rusal Bratsk Aluminium of Russia. Obasanjo then directed Power and Steel Minister, Senator Liyel Imoke, to start negotiations with Rusal of Russia while Imoke also direc-ted BPE to call Akin Kekere-Ekun chairman of the Technical committee of CNP for the negotiation. However, at the negotiations, according to sources, Rusal now decided to pay $160 million as against a conditional bid to $205 million offered for ALSCON earlier. Efforts to get the management of Rusal to increase their offer proved abortive as they insisted on paying $160 million for acquisition of 77.5 per cent government shares in ALSCON. Kekere-Ekun, however, showed his annoyance by walking out of the negotiation meeting, saying �if not because of the President�s directive, I am not in a position to mess up myself in any transactions.� Power and Steel Minister, the source said, pleaded with officials of Rusal but they insisted on the new payment of $160 million. However, the matter had gone back to the President for his comment. Sources as at press time last night said government was contemplating reversing to BFI Group as United States Government had vehemently protested the cancellation of BFI Group, through the U.S. Department of commerce. It said the cancellation was not in good order and did not portray Nigeria�s business transactions as transparent. With government�s interest in Rusal acquiring ALSCON and cancellation of BFI Group of America, sources said the measure had rubbished the image of the country, particularly as it relates to transparency and tackling corruption as Nigeria just last week reached an agreement with the G.8 to cooperate in the areas of transparency and fighting corruption. The money spent in conducting the 10 month old ALSCON transaction may now go down the drain since the BPE took loans from World Bank to see through the transactions. Part of the money sourced from World Bank was used to pay legal advisers, financial advisers, technical consultants and other payments, which also include money expended on live television coverage. Meanwhile, Obasanjo had also stopped the investor sale of the Mint and ordered a re-start of the bidding process. He also intervened in the Africbank shares, ordering the BPE to adopt initial public offer (IPO) option as against the investor sale adopted by the Bureau. The N8 billion already collected by BPE from eight investors had been refunded with interests. Friday, June 18, 2004 |
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