Senate to investigate Jonathan, El-Rufai, Obasanjo, others over N2.7 billion concession, calls it 'national disaster'

03.11.2017 21:50

The Nigerian Senate has announced plan to probe past presidents and other leaders responsible for the concession and privatization of government property.

- The Nigeria Senate is set to probe former Presidents Olusegun Obasanjo and Goodluck Jonathan

- The Senate said it would summon the leaders for the concession and privatization of government property

- Others invited are Governor Nasir El-Rufai and Dr. Aliyu Modibbo Umar; Senator Bala Mohammed, among others

The Nigerian Senate on Wednesday, November 2, has announced plan to probe past presidents and other leaders responsible for the concession and privatization of government property.

The Senate said the investigation will look into all the issues relating to the Concession and privatization of some government property in the Federal Capital Territory to the tune of N2.7 billion

Vanguard reports that those to be probed include ex-Presidents Olusegun Obasanjo and Goodluck Jonathan, as well as Governor Nasir El-Rufai of Kaduna state; Dr. Aliyu Modibbo Umar; Senator Bala Mohammed, among others.

While speaking on the issue, the Kogi West representative and chairman of the Senate committee on the Federal Capital Territory Administration (FCTA), Senator Dino Melaye at a meeting with the minister of the FCTA, Mallam Muhammad Musa Bello, described the issue as a national disaster and real leadership failure.

Melaye 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. The actual performance on this charge has zero returns over the years.

"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 the 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.

“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 relatively 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 and 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."

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Meanwhile, NAIJ.com previously reported that Ibrahim Idris, the Inspector-General of Police (IGP), has finally agreed to appear before the Nigerian Senate over allegations by a legislator, Isa Misau.

Idris is now to appear before a Senate ad-hoc committee probing the allegations by Misau representing Bauchi Central Senatorial district at the upper legislative chamber.

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