Yar’Adua Reversed Sale Of Refineries Due To Obasanjo’s Shares, Other Reasons – Falana
The Alliance on Surviving Covid-19 and Beyond (ASCAB) led by Femi Falana (SAN), has countered former President Olusegun Obasanjo on why late President Umaru Musa Yar’Adua cancelled the sale of the Port Harcourt and Kaduna refineries.
According to the group, the late President found out that the deal was not in the best interest of Nigeria.
The Alliance, in a statement on Friday, noted that former President Olusegun Obasanjo had sold a 51% stake in the Port Harcourt Refinery to Bluestar Oil for $561 million, a consortium comprising Dangote Oil, Zenon Oil, and Transcorp.
In a similar transaction on May 28, 2007, 51% of Kaduna Refinery was sold to Bluestar Oil for $160 million.
It observed that before the deal, Obasanjo had reportedly acquired large shares in Transcorp.
“Bluestar Oil was a consortium of three domestic companies, including Dangote Oil, Zenon Oil, and Transcorp. Before the deal, President Obasanjo had acquired large shares in Transcorp through ‘blind trust’.
“Many interest groups in the country questioned the legal validity and moral propriety of the sales as they were consummated in the last days of the Obasanjo Administration,” the group alleged.
It said not only was there conflict of interest in the transaction, but also the circumvention of Privatisation and Commercialisation Act.
The Alliance said although the Act placed the Vice President as chairman of the National Council on Privatisation (NCP), which oversees the sale of public enterprises, Obasanjo sidelined then-Vice President Atiku Abubakar and directly managed the privatisation process.
The group recalled that both the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) kicked against the privatisation of the two refineries on grounds of conflict of interest and lack of due process.
“They also alleged that the nation had been shortchanged as the shares acquired in the Port Harcourt refinery for $516 million were worth US$5 billion.
“Convinced that the deals were not in the national interest, both unions proceeded on a 4-day strike that almost paralysed the Nigerian economy in June 2007. The strike was called off based on the assurance of the federal government to the effect that the deals would be fully investigated.”
According to the group, it was upon the conclusion of the investigation that Yar’adua cancelled the deal.
“It is on record that the cancellation of the privatisation was not challenged in any court as it was carried out contrary to the letter and spirit of the Privatisation and Commercialisation Act.
“The Alliance on Surviving Covid and Beyond (ASCAB) hereby calls on NUPENG and PENGASSAN to intensify their historical struggle as a counterpoise to the renewed campaign for the privatisation of the nation’s refineries.
“Those who are awaiting the privatisation of the refineries in a manner at variance with the national interest should be advised to set up their own refineries like the Dangote Group,” the statement added.
Former President Obasanjo had claimed that the Nigerian National Petroleum Corporation (now Nigerian National Petroleum Company Limited) turned down a $750 million offer from Aliko Dangote to manage the Port Harcourt, Warri and Kaduna refineries in 2007, during his administration.
Speaking during an exclusive interview with Channels Television on Thursday, Obasanjo claimed that although the NNPC was aware of its inability to effectively manage the national refineries, it still rejected Dangote’s proposal.
Obasanjo said that Dangote made his offer after Shell turned down government offer to manage the three refineries because of corruption, poor maintenance, low production output and two other reasons.
The former President said, “It was after that, Aliko got a team together and they paid $750 million to take part in PPP (Public–Private Partnership) in running the refineries.
“My successor (Yar’Adua) refunded their money and I went to my successor and told him what transpired. He said NNPC said they wanted the refineries and they can run it. I said but you know they cannot run it.”
