Group wants investigation of privatised enterprises under Obasanjo, Yar’Adua, Jonathan
- SERAP has urged Buhari to investigate privatised enterprises under Obasanjo, Yar’Adua, Jonathan
- The group advised that anyone suspected to be involved should be made to face prosecution
- It also said any cases of presidential directives/interference during the period under review (1999-2011) affected the process of core investor selection
The Socio-Economic Rights and Accountability Project (SERAP), has sent an open letter to President Muhammadu Buhari requesting him to use his “good offices and leadership position to revisit and refer the allegations of corruption and abuse of process in the privatisation of public enterprises in Nigeria between 1999 and 2011 to anti-graft agencies.
Premium Times reports that the group advised that if there is relevant and sufficient admissible evidence anyone suspected to be involved should be made to face prosecution.
Legit.ng gathered that SERAP urged Buhari to “reform the Bureau of Public Enterprise (BPE) to remove opportunities for corruption in privatisation process, and to instruct the EFCC and ICPC to ensure the recovery of proceeds of corruption.
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"We request that you take the steps within 14 days of the receipt and/or publication of this letter, failing which SERAP will institute legal proceedings to compel your government to act in the public interest.”
In the letter dated December 1 and signed by SERAP executive director, Adetokunbo Mumuni, the organisation said: “SERAP has obtained and carefully read the full report of the Senate ad-hoc committee on Investigation of the Privatisation and Commercialisation Activities of the Bureau of Public Enterprise (BPE) from 1999 to 2011, which contains damaging allegations of corruption, presidential interference, and abuse of due process in the selection of core investor, valuation of public enterprises, pricing of shares/assets, determination of workers terminal benefits, and use of proceeds of privatisation.”
According to the organisation, “Many cases of presidential directives/interference during the period under review (1999-2011) affected the process of core investor selection. The BPE was negligent and ineffective in monitoring of privatised companies. In some cases, BPE never monitored the companies for the entire lock-in period and in other cases their reports were complete opposite of what was on the ground.”
The letter copied to vice president Yemi Osinbajo, who is also the chair of the National Council on Privatization (NCP), read in part: “It is in the public interest that any sales of public assets will get the best value but the Senate report shows exactly the opposite.
"By revisiting the privatisation process and referring the allegations of corruption documented in the report to the EFCC and ICPC, your government would be demonstrating that it’s willing and able to fight impunity of perpetrators of corruption, which is responsible for legacy of grand corruption and abuse of office in the country.”
“Specifically, the committee among others found that: A total sum of N301 billion was realised as proceeds of privatisation from 1999 to 2011. N900 million of that was used as loan to Nigeria Re-insurance Plc for recapitalization, in violation of section 19(2) of the Public Enterprises (Privatisation and Commercialisation) Act 1999. Folio Communications Limited pledged the assets of Daily Times Nigeria Plc to obtain loan from bank(s) and utilized the loan to pay for the share of the company.”
“Core investor converted the premises of Volkswagen Nigeria Limited into bonded warehouses for storage of contrabands mainly rice, vegetable oils, fertilizer, but was not reported by the BPE. Former Director-General of BPE, Mrs Irene Nkechi Chigbue sought and received direct approvals of former President Olusegun Obasanjo for many privatisation transactions, in violation of Section 11 of the Public Enterprise Act and the Bureau Procedure Manual.”
“Aluminium Smelter Company of Nigeria (ALSCON)—BFIG Corporation of the USA was declared preferred bidder and winner with a bid of $410 million after going through the bidding process but was denied its legal right to negotiate terms, sign Share Purchase Agreement and pay 10 per cent initial payment.
"However, BPE approved a Willing Seller Willing Buyer to Rusal/Dayson for $250 million and cancelled BFIG Corporation $410 million offer. Aluminium Smelter Company of Nigeria was grossly undervalued, having being built for $3.2 billion and was privatized by BPE for $130 million excluding $120 million Imo River Channel Dredging cost from the purchase consideration.”
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“Michelle Nigeria Limited emerged as the preferred bidder of the Apapa Port Complex Terminal “C” but it was given to ENL Consortium Limited which already had one, in breach of Ground Rule 7, which states:
“No single bidder/concessionaire would be allowed to have more than one concession in Apapa Port Complex.” BPE reversed the process instead and gave Terminal “C” to ENL Consortium Ltd without cancelling the Michelle Nigeria Limited offer, in breach of the core investor selection process.
Meanwhile, Legit.ng had previously reported that the Federal High Court sitting in Lagos has fixed December 4, 2017 for the re-arraignment of a former governor of Enugu state, Chimaroke Nnamani, who was charged with alleged fraud of N5.3bn.
Buhari is the General Overseer of corruption - on Legit.ng TV
Source: Legit.ng
