However, the fresh privatisation efforts would be determined by the outcome of an ongoing litigation at the International Court of Arbitration instituted by Global International Nigeria Limited (GINL) against the Federal Government for unlawfully abrogating a sale agreement for the management of the Steel plant without due process.
The BPE boss said the Attorney General of the Federation was diligently prosecuting and pursuing the matter so that the issue can be resolved amicably, adding that though Ajaokuta was supposed to provide raw steel to the rolling mills to be used in the construction sector and other industries, “it has still not come on stream” for obvious challenges.
Dikki noted that already, some terms of settlement had been negotiated by the attorney general adding that “they are in the process of filling those terms of settlement as judgement of the arbitrary court.”
He said the initial concessioning of the plant had been undertaken by government officials of who concessioned the company without taking inventory of the assets. “When things became a little difficult, BPE was approached to convert the concession into a Share-Sale Agreement. So it was turned into purchase of shares,” he said.
The DG also argued that 65 percent of privatised companies have been so far successful noting that the balance of the 35 percent have various reasons why they were not successful including hostile operating environment as well as policies.
-Afolake Olagunju
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