The All Progressives Congress (APC) has rejected the sale of
60 per cent equity of Delta Transport Services Limited (DELTA LINE) to GIG
Transport Development Company Limited (popularly known and operating in the
name of God-Is-Good Motors) for “a paltry sum” of N161 million.It implored the
state government to immediately rethink the deal.
A statement by Mr. Leonard Obibi, Acting State Publicity
Secretary of the APC, said: “We strongly oppose this sale because it lacks
transparency, and seems to have been organized, arranged and executed as an
‘exclusive deal’ against the best interest of Deltans. It is worrisome that, under
this deal, the name ‘Delta Line’ can be changed after just five years, and it
opens a wide corridor for God-Is-Good Motors to re-name the company when some
‘covert’ arrangement may again make it possible for them to buy off the
remaining 40%. In the end, it is the people of Delta State that will be the
losers.
“Delta Line is the only state-owned land transport company;
it is not just a brand for the state but a famous heritage of the people. It is
not just a company that provides service, but a ‘social contract’ between the
government and the people of Delta State that has been in existence for decades
since the days of the defunct parent company, Midwest/Bendel Line. Therefore,
the intrinsic value of this company is far superior to the monetary digits that
may have been concocted on paper. We, therefore, insist that Delta Line cannot
be sold off pretentiously for peanuts.
“We are particularly vexed that this magnificent company
which has been making a huge impact on the lives of the downtrodden people for
many decades, and one that has great commercial prospects was abandoned and
left to be run down under the various PDP administrations in the state. It is
on record that billions of Naira was invested in this company under the
Uduaghan administration, and whatever went wrong is further evidence of how
Delta state has been poorly managed by subsequent PDP governments.
“If the indebtedness was the main reason for this sale, then
we could as well ask Governor Okowa to tender a resignation immediately because
he has also not run Delta State efficiently; as the State has a huge debt
overburden under his watch.
“If there was nothing to hide, why did the state government
prevent the workers and unions from partaking in the discussions, especially
after it was agreed that they will be represented in the deliberations of the
Partial Privatization Committee? How could an important transaction like this
that impacts over 700 workers and their families, as well as the entire people
of the state be conducted in disguised secrecy?”
“What makes it even more puzzling is the fact that the
assets of Delta Line may have been intentionally undervalued. Is it not amazing
that any person would come to the conclusion that 60% of the value of a company
like Delta Line with many landed properties and countless mobile assets (even
if we omit the immense intrinsic value of the brand), is only N161 million.
“It is a fact that the Amalgamated Union of Public
Corporations, Civil Service Technical and Recreational Services Employees
(AUPCTRE) put forward constructive proposals since 2016 for revitalizing the
company. Besides, the Nigeria Labour Congress (NLC), on the strength of the
AUPCTRE proposals, also submitted a potentially viable investment and
management arrangement for the business. The NLC offer for 60% stake as
proposed by AUPCTRE, was to facilitate a N2billion investment with support from
banks, in order to help return this service to profitability over a three-year
period and save the jobs of the workers, but this was rebuffed without any
serious consideration.”
The party added: “None of the PDP governors, including
Okowa, has ever opened up on the true financial records of previous investments
to Deltans; if only to know how much the state lost or earned, or what is
accruing annually from the massive investments that the State made since 1999
in various other companies. We call on Okowa to tell Deltans the true situation
with its investments before proceeding to sell off this viable business.
“We have also been informed that Okowa is planning to sell
many more of the State’s assets using this same method, and we make bold to say
we reject any sale that is not transparent and all encompassing. We will advise
the Board and Management of GIG Transport Company Limited that appears eager to
acquire this attractive asset of Delta State to dissociate their company from
this questionable deal until it has met the expected standards of transparency
and due process. The entire process of the sale remains flawed as it has not
involved all the critical stakeholders; otherwise, they may be entering into
agreements and acquiring assets that may potentially put their company in legal
jeopardy.
“APC supports that the Delta Line heritage be saved. We
support an open and transparent process that will breathe new life and capacity
into this service. We support a thorough and holistic review, including proper
revaluation of the assets of the company, in a way that does not short-change
the people of Delta State but ensures efficient and cost effective delivery of
the services. “
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