The Delta state government says that the sale of its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited was executed in a transparent manner.
Chike Ogeah, Delta’s Commissioner for Information said that given the significant decline in the resources available to the state government as a result of the low oil prices, the Governor Emmanuel Uduaghan administration decided to unload its shares in the two companies in line with the Fiscal Responsibility Act. He said the state had decided to liquidate some of its assets as a result of the precipitous decline in the its monthly statutory allocations.
Mr Ogeah explained that the asset disposal would be done in line with extant laws and that reputable financial advisers would be involved in the process. “The amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers. In effect, actual sale could see more money being realized. It could also be less. As part of the adherence to due process, existing shareholders in the two companies will exercise the right of first refusal in deference to the articles of association of both companies,” said Ogeah.
Mr Ogeah said that Delta expected to make a huge profit from the sale. He implied that the controversy generated by the proposed sale was the work of certain partisan politicians. “We are aware of the fact that in these political times, even the most altruistic policy decisions will be subjected to mischievous interpretations by political jobbers,” he said.