How Nigeria lost multi-billion dollars
to Russian firm
 |
| Ms Bolanle Onagoruwa, DG, BPE |
Senators
probing the activities of the Bureau for Private Enterprises, BPE, were yesterday
stunned by the gory tale of how most national assets worth several billions of
dollars were frittered away under a bogus privatization exercise from1999 till
date.
For
instance, it was revealed that the gargantuan Aluminium Smelter Company of Nigeria which was built at the
sum of $3.2 billion was sold to Russian firm, Russel for a meagre $250 million.
Even
then the Russian firm ended up paying only $130 million out of its total bid, while
Nigeria
again lost the balance of $120million from the controversial transaction.
Another
ugly trend in the privatization programme was the sale of Delta Steel Company
which worth $1.5billion for a paltry $30million without adherence to due
process.
These
were part of the startling revelations at the ongoing probe by an Adhoc Committee
of the Senate of 122 privatized enterprises from Obasanjo’s government in 1999
to date.
The
probe was triggered by the discovery that most of the privatized companies by
the BPE are moribund.
Speaking
at the public hearing, the Director General of the Bureau of Public Enterprises,
Ms Bolanle Onagoruwa disclosed that N146.4 Billion was deposited at the CBN as
proceeds from privatized companies while a sum of N224 Billion was used to
settle liabilities.
Arising
from the revelation that BPE has illegal accounts with some commercial banks,
the senate committee has thus demanded for the details of the accounts which
was said to have been opened contrary to the provision of the Act establishing
the BPE.
Meanwhile
a group, under the auspices of Association of Contractors, has warned both
local and foreign investors to steer clear of the sales of NITEL/MTEL until
government pays its liabilities to contractors.
The
group put the liabilities owed to them at N500 million, being a sum for the jobs
done between 2004 and 2006.
Kabiru
Musa who led the Association of the contractors said:
“Despite
the fact that the N80 billion provided by the federal government far exceeds
the entire liabilities of the ailing NITEL/MTEL, all efforts so far made by the
over 300 contractors to retrieve their debts have been thwarted by some vested
interests within and outside the country.
“The
BPE and the owners of NITEL/MTEL have remained evasive in respect of the debts
and the matter dragged till January 2011 when the contractors were told that
federal government was waiting for investors to buy the company for them to pay
the contractors with proceeds there from.”
The
public hearing continues.
africanexaminer
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