Probing Dangote

Aliko Dangote

The Benue State House of Assembly initiates a probe into the sale of Federal Government shares in Benue Cement Company (BCC) to Dangote Industries Limited
By Sam, Tyav, Makurdi
Over three years after the sale of Federal Government’s core shares in Benue Cement Company (BCC) Plc to Dangote Industries Limited (DIL), which generated intense controversy, the Benue House of Assembly is again dusting up the issue for re-consideration.
Before the deal was sealed, there were accusations, name-calling and all sorts of insults traded between those who opposed the sale and those in support. The Tiv enthic group, for one, were particularly divided on the sale of the Federal Government shares. The Source gathered reliably, that the then state Governor, Senator George Akume had resisted the sale of the core shares to Dangote. Reasons advanced by the state in standing against Dangote included incompetence in cement production. Akume did not hesitate to inform Benue people and Nigerians that he would resist the sale of the shares to Dangote with the last drop of his blood.
The Source’s investigation indicated that the then National Chairman of the People’s Democratic Party (PDP), Chief Barnabas Gemade, Dr. Iyorchia Ayu and Senator Akume, among other notable Benue sons, had deep misunderstanding in connection with the sale.
Several groups also protested the sale of the core shares. Prominent among them were Benue Development led by Dr. Alexander Gaadi which sent an open letter to the then president, Chief Olusegun Obasanjo. The host community of the cement company did not also give the Federal Government a breathing space. Youths from the area, The Source reliably learnt, had gone wild while on a protest by taking laws into their hands. The youths burnt down vehicles on the highway along Makurdi-Gboko Road. No fewer than 11 vehicles were burnt by the Mbayion youths.
While those who did not know the implication of the action hailed it, but unknown to them, it was to cost the state government a fortune in managing the crisis and payment for destroyed vehicles. The Federal Government was said to have deducted money for the burnt vehicles at source from the state’s monthly allocation.
The Source gathered that the state had preferred Cementia Lafarge to buy the Federal Government’s core shares. It was believed that Cementia Lafarge had more competence in the production of cement, but the Bureau for Public Enterprises (BPE) preferred Dangote Industries Limited, as it was alleged to have paid higher than Cementia Lafarge.
The controversy took a long time to resolve. As a result, there was no production of the commodity and the company was shut down temporarily. Besides, the company was heavily indebted to the National Electric Power Authority (NEPA), now Power Holding Company of Nigeria (PHCN) to the tune of over N40 million, in addition to owing staff salaries for over 15 months. This does not include the amount owed contractors.
The crisis over the sale of the Federal Government shares of the company to DIL was to last about a year, and the Federal Government decided to give a deaf ear to it.
But considering the fact that the factory was the only viable Federal Government presence in the state, and given its assistance to the people of the state in terms o femployment, and also given the adamant posture of the Federal Government on the issue, the state government had to reconsider its decision on the issue and settled for an agreement.
The DIL on its part agreed to take over the company with all the liabilities and a promise to improve on the community relations, includinig reviving the BCC Lions Football Club.
It is beyond doubt that the company has been fully resuscitated with the attendant promise to increase its production capacity. It is unfortunate, however, that the Benue people are not being considered for distributorship. The former Managing Director of the company, Tasudeen told journalists in his office that those qualified for distributorship in the state were not up to five. The implication of the situation is the fact that the commodity would cost more in the state than in other places it is supplied to. Investigations also indicate that the commodity is sold in the state between N1,700 and N2,000, unlike in other states where it sells at N1,500 per bag.
Carefully looking at the circumstances that surround the sale of the Federal Government shares and the alleged sale of Benue State shares to DIL, the Benue State House of Assembly, last week, resolved to commence a fullscale investigation.
The Source’s checks show that the House would also investigate the alleged violation of terms of the agreement, as contained in the consent judgment between Benue Investment and Property Company, (BIPC) that represented the state government and DIL as it concerned the sale of the state’s shares.
To put the records straight, the House of Assembly has summoned the management of DIL and BCC Plc and the board of BIPC. The former Managing Director of BIPC, John Tine, has also been summoned to appear before the House on Tuesday, December 15, 2009 to explain the circumstances surrounding the sale of the state shares and the level of compliance with the agreement signed.
Others involved in the investigation of the alleged sale of the state shares, who are equally summoned to appear before the House are Joe Abaagu, former Commerce and Industries Commissioner and Geoffrey Agenor, former Justice Commissioner.
The speaker of the House, Terseer Tsumba while ruling on the motion, stressed that the matter was of public importance and needed prompt attention.
The mover of the motion, Simon Kwaghbula,had explained that DIL had violated the terms of the consent judgment and has also refused to pay to BIPC the 10 per cent rights issue as contained in the agreement.