By Demola Akinyemi

IT looked like a purposeful investment deal. However, plans by the Kwara State government to establish a rice cultivation deal with a Spanish company has taken centre stage in the ever raucous relationship between the ruling Peoples Democratic Party, PDP administration of Governor Abdulfatah Ahmed and the opposition Action Congress of Nigeria, ACN in the State.

Penultimate week after signing an agreement with Spanish investors in the midst of local and foreign bankers and the investors, Governor Ahmed’s joy could hardly be hidden.

The N70 billion agreement with the Vasolar Consortium of Spain was specifically aimed at boosting rice production in the state which has already marked its name as an investment haven for foreign farmers.

Ahmed at the occasion noted that the government would provide 30 per cent of the total package of the cost of the project while the Spanish investors would provide the balance 70 per cent.

As part of the deal, Kwara State would provide 70 million euros and release 200000 hectares of land for the project over a period of four years.

The governor also said that, the output of the project is expected to be 40,000 tons of rice on average of 5,000 hectares annually.

Ahmed who  said that, the MOU would assist the local farmers to have transfer of technical assistance capable of helping them to boost their production called for the support of all and sundry in the determination of transforming the state into economic prosperity that would usher in new economic investment for the overall benefit of Kwarans.

Governor Ahmed urged the people of the state to make agricultural development a major priority so as to make food available for them.

Earlier, the leader of Vasolar Consortium of Spain, Mr. Ruben Gomez Parojo  said that,   Nigeria was blessed with good climate, arable land and human resources to transform agriculture. He stated that Nigeria’s reliance on oil as a major source of foreign exchange earnings would be altered with the diversification of the economy.

Gov Ahmed

Also speaking, , the Group Managing Director, Guaranty Trust Bank, Mr. Segun Agbaje, on behalf of the partnering banks said that the development of agriculture would greatly transform Nigeria’s economy  assuring the commitment  of the bank towards the success of the project.

The ACN is, however, not enthusiastic, insisting that the Spanish company is “non existent.”
The chairman of the party in the state Mr. Kayode Olawepo in a statement titled “N70b MoU for rice farm: A contract with a nonexistent company argued:

“In line with our commitment to ensure that it is no longer business as usual in Kwara, we are again raising the alarm over what is clearly another attempt to commit public fund and property to yet another questionable project. Last Thursday, the PDP government signed an MOU with one ‘Vasolar Consortium of Spain’ for the cultivation, processing and packaging of rice in commercial scale in the State”.

“Under the agreement, according to media reports, “the Consortium will provide a total capital of N70 billion over a period of four years while the State Government is expected to provide about Seven Million Euros and 20,000 hectares of land to kick-start the project.”

“We deem the whole arrangement a monumental fraud. For one, our research since the Thursday event reveals that no company exists under the name Vasolar Consortium whether in Spain or anywhere in the world! Assuming without conceding that such a company exists in Spain, how come it is not listed or registered with the Spanish’s equivalent of our own Corporate Affairs Commission? Does that not raise the question of credibility which is sin qua non in any business deal?

But in a swift reaction, the governor’s senior special assistant¸ media and communications Dr. Muyideen Akorede debunked the ACN claims insisting that the Spanish company indeed exists with facts.

Dr Akorede in a statement titled, “Kwara: How We Clinched N70b Rice Deal” explained that the N70b rice joint venture with Valsolar Consultoria 2006 S.L. was the product of extensive negotiation, due diligence and Corporate Affairs Commission (CAC) approval.

Giving the genesis of the agreement, Dr. Muyideen Akorede, said it received a letter of intent from the Spanish investors in October 2011, seeking to partner with the state government to set up a rice cultivation, processing and packaging project in the state following a recommendation by the Spanish Embassy in Nigeria”.

He stressed that considering that the company is undertaking similar ventures in other parts of Africa under Project Africa Rice and in line with the government’s policy of encouraging foreign direct investment, officials were subsequently dispatched to Spain to open discussions with the company”.

The governor’s aide also stated that delegation was also directed to conduct vigorous checks on Valsolar’s legal status as well as assess its capacity to invest the needed funds in the project.

These checks included original copies of Valsolar’s certificate of incorporation, the articles and memorandum of association which were sighted and duly notarised copies obtained for the state government’s record.

The struggle by the ACN to disprove these claims will, however, not ease the pains of the administration. The opposition after all, is doing its duty of putting the government in check!