Delta clarifies status of shares in Transcorp, Midwestern Oil firm

DELTA State Government has reacted to reports in some sections of the media over the sale of shares owned by the government in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited.

    Commissioner for Information, Mr. Chike Ogeah in Asaba Tuesday explained that given the significant decline in the resources available to the state government as a result of the low price of crude oil, the government decided to sell its shares in the companies

    Ogeah said that in line with the provisions of the Fiscal Responsibility Act, when the issue was tabled before the State Executive Council the process for the commencement of divestment in both companies was approved but contrary to reports, no shares belonging to the state government have been sold yet.

    Continuing, he explained that when the government had resources to spare in the short and medium term, a decision was taken to invest in some viable ventures as a way of saving for the raining day. That decision has undoubtedly paid off with the steep decline in the price of crude oil, which led to a huge drop in the statutory allocation the state receives from the Federal Government.

    The Commissioner remarked that contrary to the impression that the sale is being conducted unilaterally, due process is being strictly observed with the appointment of financial advisers to the exercise.

     Ogeah said: “The amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers. In effect, actual sale could see more money being realized. It could also be less. As part of the adherence to due process, existing shareholders in the two companies will exercise the right of first refusal in deference to the articles of association of both companies.”

    He stressed that the government bought the shares at a time it had excess funds, adding that the idea is not just to save for the rainy day but also to buy when prices are low and sell when high dividends can be assured.

     Ogeah said that by all market indices, what will be realized from the sale would be a significant profit from the earlier investment.

     According to him, the enduring hallmark of Governor Emmanuel Uduaghan’s administration is its adherence to the rule of law and protection of the common interest of the people of Delta State.

    He assured that the government will never engage in any untoward transactions and there is absolutely nothing “controversial or scandalous” about the sale.

   “We are aware of the fact that in these political times, even the most altruistic policy decisions will be subjected to mischievous interpretations by political jobbers.