The Rivers State Government has described the allegation by Labour Party governorship candidate, Tonye Princewill, that it is bankrolling the All Progressives Congress, APC, as “utter nonsense” conceived to tarnish the state’s image. Tonye Princewill alleged that proceeds of states assets sold to Governor Rotimi Amaechi’s cronies and believed to worth $800 million are funneled into promoting the APC campaigns. But the state Commissioner for Finance, Chamberlain Peterside, disagreed and gave clarifications on the said transactions. Peterside said: “It must be pointed out clearly in no uncertain terms that proceeds from this sale were all received in the consolidated revenue account of the state. “It is inconceivable that any such revenue could have been diverted for political party, campaign given the complex structure of our public accounting system that we operate. Where and how any one such as Mr. Princewill could come up with such claim of fund diversion is simply preposterous. “Under the administration of Rt. Hon. Chibuike Amaechi the (Risonpalm) plantation was successfully revamped through 35 years concessioning agreement with SIAT Group of Belgium who were the original project managers and have proven track record of operating oil palm plantations in Nigeria, including Presco Plc. that is currently public listed in the Nigeria Stock Exchange. “Under the terms of that agreement SIAT assumed the debts/liabilities of the company and will pay annual royalties to Rivers State Government.” Peterside said all obligations have been paid by SIAT while it has begun revamping the operations and creating thousands of new jobs. The initiative, he said, would boost the state’s revenue through tax payment, apart from annual royalties it stands to earn. Part of the story as reported by PREMIUM TIMES is reproduced below: On the sale of the state’s power plants, also questioned by Mr. Princewill, the Rivers government said it divested 70 per cent of the over 500 megawatts station due to poor management, delay in refund of sold power by PHCN and inadequate gas supply – factors that hindered regular electricity supply. It said the proceeds of the deal were remitted to the government’s coffers and are used for other projects. “It is simply out of the question for those who know how financial system functions, that lenders and financiers can stand and see proceeds of their own credit facility diverted to other destinations that are not clearly stated in the loan covenants,” the government said. In separate details, the state government said the Olympia Hotel which had been comatose for 30 years was only revamped in 2012 and leased same year to Centrum Properties Limited & Cenpropsaroten Hotel Management Limited with a projected income of $1million, being concession fee and rent. In addition to the concession fee, the new managers shall pay rent annually to the government after first five years, the government said. Other asset include Supapod Building, leased to Artee Industries Limited in June 2011 with N200 million as projected income; and Hotel Presidential leased to Courdeau Nigeria Limited in 2009 with a projected income of ?200 million yearly for first five years, and ?220 million in second five years. The government said it did not divert any income or proceeds from the deals. “It simply beats my imagination that someone like him (Mr. Princewill) who has been on the corridors of power in this state that should know better, will peddle such falsehood and derogatory information relating to the public expenditure of the state.” Dissatisfied, Tonye Princewill fired back. Read his comments below, as reported. When we received the news that the Hon Commissioner of Finance had responded to news reports on the secrecy surrounding the sale of Rivers state assets to friends and cronies, we anticipated that finally we would have a meaningful engagement and that a debate on the issues was imminent. We quickly sought to see what details and substance he would provide. We were not expecting him to be totally open, because we knew he knew little about what was going on. However what we didn’t expect was an empty and verbose monologue. Claims about a malicious publication, yet no redress sought from publishers, personal attacks on the Prince, bogus allegations and references to unnamed projects of questionable intent with no clear objectives, yet governments are the ones who should set objectives and deliver on them. Plenty waffle, little substance and in the end we are still where we are. Without answers. Little or no detail. All from a government of eight years. He claims the Prince should keep quiet on the subject of public finance because in his words; “He knows nothing about it”. This is the arrogance we hoped to avoid. Any citizen should be able to ask basic questions on the state of our public finances. The money belongs to us. If there was indeed full disclosure as he claims, there would be no need to ask the obvious. But in order to give him the benefit of the doubt, we will ask again. Please Hon Commissioner, Disclose this:
- Were assets sold? Name them and the transactions.
- Who were they sold to? We want to know the names.
- How much were they sold for? And how and when was it paid?
- How was the figure determined? Was there a bid, a valuation, who participated?
- Constantly he claims it is in the public domain. Name the publication.
- Where exactly are the monies now?