June 10, 2009

Benue Assembly nullifies Yelwata, state govt deed

By  Peter Duru

MAKURDI— Disappointed by the failure of the lease agreement entered into by the state government for the revival of the ailing Taraku Oil Mills, the Benue State House of Assembly has nullified the deed the state government entered with Yelwata Trading Company for non-performance.

The Assembly also hinged its reasons for the sudden termination of the agreement on alleged incompetence on the part of the lessee to deliver on contractual agreements.

The decision of the House was premised on the report presented at the floor of the House by the Chairman of the Commerce and Industries Committee, Mr. George Ali representing Otukpo/Apka State Constituency, who alongside his team had undertaken a fact-finding mission to the Taraku Oil Mill.

Ali had in his report intimated the House that paragraph two of the lease agreement permitted the lessee to refurbish the company and also pay the lease fee of N60 million to the state government upon commence-ment of operations.

The report noted that this provision was not adhered to by the lessee and despite being intimated of the intension of the Ministry of Commerce and Industries to terminate the lease on grounds of non-compliance on the part of the lessee, the firm made no efforts to address the anomaly.