Reps to BPE: Provide details of NACFA privatization

*ordered to pay N189 million to core investor or, no budget for 2022

Tom Okpe, Abuja

The House of Representatives committee on Privatisation and commercialisation has directed the the Bureau of Public Enterprise (BPE) to pay outstanding balance of N189 million to Jorotom, core investor that acquired National Clearing and Forwarding Agency (NACFA) at privatization.

This was part of the resolution passed by the committee, after its public hearing on Tuesday, before adjonement to Wednesday.

The Committee, after deliberation, warned that, BPE won’t have any allocation in 2022 budget or any other legislative engagements if it fails to pay up the money as it has at many times failed to appear before the committee over the dispute on NACFA properties.

The committee also called on Assets Management Company of Nigeria (AMCON), Messrs Jorotom International Agency Limited, Ministry of Defence and other parties to settle their lingering dispute out of court.

Recall that, the dispute was over the sealing of the company’s property in Lagos and a land on plot GKN 204, old Airport road Kano which is being occupied by the Nigerian army for years.

The plot is part of assets and liabilities inherited by the company after it acquired NACFA and it’s 3.484 hectares of land in Kano.

Jorotom International Agency Limited acquired 100% of NACFA through a core investor sale strategy in 2006 at the sum of N3.6 billion financed through a loan facility by the defunct Skye Bank.

The Bank was later taken over by AMCON and later merged to become Polaris Bank.

Subsequently, AMCON, based on the loan facility and accruing interest sealed the company’s lagos property while it’s plot occupied by the military was not paid for, by the Ministry of Defence.

Subsequently, AMCON filed a case at the Federal High Court and later Supreme court over failure of the company to offset it’s debt.

Speaking at the public hearing on Tuesday, General Manager, Jorotom International Agency Limited, core investor that acquired NACFA, Adeniyi Dare said, “our property in Lagos was sealed by AMCON leading to the loss of about 1000 jobs.”

He also said, the military had also been occupying the said property in Kano since 2006.

Dare said, “Ministry of Defence showed interest to buy the land but stated that, they undervalued the land and offered N2.2 billion in 2016.

“Another revaluation was done for the property in 2020 for N32 billion. N2.2 billion quoted, was payment for compensation demanded by the company from Ministry of Defence out of which only N125 million was paid to them.

“While signing the MOU on the acquisition of NACFA, it was agreed that, the BPE will reimburse the core investor of the sum of N189 million as the cost of procuring and perfection of the title documents on behalf of BPE

“However, this payment is yet to be made despite our demand letter of 2nd August, 2021 to BPE. The delay in this payment has impacted negatively on our operations.”

Similarly, the company in a letter to the Minister of Defence dated August 2nd, 2021 presented before the committee, said they were shocked to receive on N125 million out of the N2.2 billion compensation,” he said.

On their part, AMCON representatives said what they are doing regarding the NACFA properties was within the provisions of the laws establishing the agency.

However, Uzoma Nkem-Abonta disagreed saying that, AMCON saying that, AMCON invested in Polaris Bank and became part owners of the loan.

He said, AMCON is mounting interests on the loan while the military is occupying the company’s land and is not willing to pay compensation.

Similarly, another member of the committee, Benjamin Mzondu (PDP, Benue) lamented that, the matter has dragged for so long, hence there is need for the parties to find an amicable solution to the impasse.

In his ruling after a motion by Nkem-Abonta, Deputy Chairman of the committee, presiding, Kolade Vakinjo demanded that, BPE pay the N189 million to Jorotom, instructing that MD,CEO of AMCON, appear before the committee with all documents on loan purchase agreements between Skye Bank and the agency.