NIGERIAN SENATE MOVES TO PROBE OBASANJO, JONATHAN, EL-RUFAI, OTHERS
NIGERIAN SENATE MOVES TO PROBE OBASANJO, JONATHAN, EL-RUFAI,
OTHERS
The Nigerian Senate has announced
that it will soon begin a rigorous investigation into the controversies
surrounding the concession and privatization of some government property in the
Federal Capital Territory to the tune of N2.7 billion.
It described the entire process as a
national disaster and leadership failure.
The upper legislative chamber said it
was disheartening that despite the stream of investments in the territory, with
the private owners of these government establishments making huge amount of
money, the revenue portion on the investments stood at zero over the years
since 2008.
Consequently, the Senate said that it
would summon all the key players in the past governments that were responsible
for the concession and privatization of these property to private individuals
in the nation’s capital city.
Speaking yesterday during a meeting
with the Minister of the Federal Capital Territory Administration, FCTA, Malam
Muhammad Musa Bello and the entire leadership of the FCTA appeared before the
Senate Committee on the FCT, Chairman of the Committee, Senator Dino Melaye, APC,
Kogi West vowed that the Senate would dig deep into the matter by fishing out
all the major players in the concession and privatization process of these
property.
He said, “It is worthy of note that
these FCT owned companies received huge returns on investment without making
returns to FCT Administration. The returns are in billions of Naira. They are
spent and re-invested without appropriation. This is contrary to the principles
of accountability and due process. The Committee is also worried about the revenue
line charge on investment income.
“Incidentally, the concession and
privatization of these government property were carried out during former
Presidents Olusegun Obasanjo and Goodluck Jonathan,just as the Ministers were
Mallam Nasir El- Rufai who is now the governor of Kaduna State; Dr. Aliyu
Modibbo Umar; Senator Bala Mohammed, among others.”
“Let me say that the abysmal
performance of These concessioned properties in The FCT is basically a direct
consequence of leadership failure. By the twilight of Thye past administrations
in Nigeria, a plethora of discontentment on The exercise had reached fever
pitches.
“We as members of This Committee will
continue to bridge The meaning of our resolve with realities through our
oversight for effective implementation.”
Senator Melaye added, “permit me to
comment on some of the concessioned properties as follows: The Karu General
Hospital was initially a 222-bed facility built by the FCT Administration. It
is important to note that 40% of the Hospital is leased to Primus Super
Specialty Hospital (an Indian HoSpital) for management. The hospital commenced
operation on 19th April, 2017.
“Garki Hospital was concessioned to
Nisa Premier Hospital in partnership with Nisa Premier Apeiron Consortium. It
is pertinent to state that Garki Hospital was built to provide affordable
healthcare for residents of Garki District. The aim of providing the facility
was defeated as the management of the hospital now charges relativety very high
fees on patients due to concession of the hospital. The Committee frowns at
this misdemeanor. As representatives of the people, we hold it as a
responsibility to care md protect the people’s lives‘ worst harzard and
misfortune specially in a time like this.
“Time and time again, I wonder deep
in my heart why must it be Garki which hosts the lower and medium cadre
officers in the civil service. Why not Asokoro or Maitama Hospitals, which are
surrounded by high caliber of Nigerians from all walks of life.
“Sheraton Hotel and Towers was
incorporated on 16th January, 1981 as a private liability company which later
transformed into public liability company in 1990. The hotel was constructed by
Government with a loan of about $300 million (Three Hundred Million Dollars)
borrowed from a German Bank. The debt was eventually settled by Government
because there was a sovereign guarantee on it.
“The then Director-General of Bureau
of Public Enterprise (BPE), Mrs. Irene Chigbue, stated clearly during the
Investigative Public Hearing of this Committee in 2008 that Government Agencies
were invited to subscribe to the ownership of the company in which Abuja Investment
Limited was part of the subscribers.
“It is important to note that 87% of
the Federal Government shares of the hotel, that is 51% was sold to core
investors while other shareholders’ shares remain unchanged. It is worrisome to
state that Sheraton Hotel and Towers was privatized for $34 million (Thirty
Four Million Dollars) only.
“The Committee was reliably informed
that the 51% of the shares of the hotel was valued and sold for $34 million.
This means that the total value of the hotel is less than $68 million.
“This figure is very ridiculous
because the hotel was constructed at a period when the Naira was stronger than
the dollar ($300m). Despite the hotel’s 20 years of operations (1982 2002), the
Return on Investment (ROI) was a negative quantity.Today, the facilities in the
hotel is depreciating by the day. The hotel is not well managed with many of
the rooms uninhabitable.
“The sale of Sofitel International
Hotel which is also known as NICON Luxury Hotel followed the same pattern as
the Sheraton Hotel and Towers. The hotel was constructed in 1980. The Federal
Government, through the Ministry of Finance, owns 92.5% of the shares, FCDA
owns 4.64%, NICON Insurance owns 01%. The remaining shares were distributed
accordingly.”
