November 5, 2020

FG to sell Afam Power Plant at N105bn today

FG to sell Afam Power Plant at N105bn today

By Emma Ujah

The federal government will realise the sum of N105 billion from the privatisation of Afam Power Plant. The Director-General of the Bureau of Public Enterprises, BPE, Mr. Alex Okoh, stated this in Abuja, yesterday.

According to him, the deal will be sealed at the Villa. He said that despite the COVID-19 pandemic, the BPE remained active.   Meanwhile the Bureau  stated that reports   that it doverted N2.5 billion from the proceeds of the Power Holding Company of Nigeria ( PHCN) is not correct.

It clarified:

“On 25th  February, 2014, the Bureau of Public Enterprises got the approval of the Accountant General of the Federation (OAGF) to establish a banking relationship with Aso Savings and Loans Plc.

“Subsequently, the Bureau made a placement in the sum of N2.5 billion in the account to facilitate access to cheap finance for the Bureau’s staff housing scheme but the staff were not able to access the money.

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“Following the Federal Government’s directive on 14th  September, 2015 that all funds held with Commercial Banks be transferred to the Bureau’s Treasury Single Account with the Central Bank of Nigeria, it was discovered that Aso Savings & Loans Plc could not meet its deposit repayment obligations.

“As a result, on 18th  October, 2016, Aso Savings and Loans Plc proposed a repayment plan as follows:

  1. Property swap valued at N1.52 billion: Under this arrangement, ownership of some completed properties that are ready for sale will be ceded to the Bureau in partial satisfaction of the stranded deposits; and
  2. Cash repayment of N1.25 billion: This entailed a bullet transfer of N70million per month until the amount was extinguished.

“Despite the arrangement, Aso Savings and Loans Plc. defaulted in meeting its obligations under the agreement. As a result, the Bureau has made several demands to ASL which has remained elusive till date.

“It should be noted that some of the ASL properties that are habitable have been sold and the money received, paid into government treasury.