The Rivers State Government has denied bankrolling the ruling All Progressives Congress, APC, with proceeds from its privatised asset, dismissing an allegation the governor, Chibuike Amaechi, supervised illicit sales of government property and diversion of public funds.READ HERE

The government said the claims made by Tonye Princewill, the Labour Party candidate for next year’s governorship election in the state, are “utter nonsense” and are ill- conceived to tarnish its image.

“It must be pointed out clearly in no uncertain terms that proceeds from this sale were all received in the consolidated revenue account of the state,” the state commissioner of finance, Chamberlain Peterside, said in a statement Thursday.

“It is inconceivable that any such revenue could have been diverted for political party, campaign given the complex structure of our public accounting system that we operate. Where and how any one such as Mr. Princewill could come up with such claim of fund diversion is simply preposterous,” the government said.

He said proceeds of the deals were paid to a private account and were later deployed for the running of the APC at the national level.

In a statement Thursday, Mr. Princewill reaffirmed his claims and called for an inquiry.

But the Rivers government said the allegations are false, as all funds realised from any government transaction were transferred to state coffers and judiciously deployed.

On Risonpalm, one of the companies Mr. Chamberlain pointed out, the Rivers government said the firm wa concessioned because despite being the largest palm plantation in West Africa with over 10,000 hectares, it had been moribund for years.

“Under the administration of Rt. Hon. Chibuike Amaechi the plantation was successfully revamped through 35 years concessioning agreement with SIAT Group of Belgium who were the original project managers and have proven track record of operating oil palm plantations in Nigeria, including Presco Plc. that is currently public listed in the Nigeria Stock Exchange.

“Under the terms of that agreement SIAT assumed the debts/liabilities of the company and will pay annual royalties to Rivers State Government,” it said.

The government said already, SIAT has paid off all its obligations while revamping the operations and creating thousands of new jobs.

It said beyond annual royalties, the state stands to earn tax revenue that will boost its internally generated revenue.

On the sale of the state’s power plants, also questioned by Mr. Princewill, the Rivers government said it divested 70 per cent of the over 500 megawatts station due to poor management, delay in refund of sold power by PHCN and inadequate gas supply – factors that hindered regular electricity supply.

It said the proceeds of the deal were remitted to the government’s coffers and are used for other projects.

“It is simply out of the question for those who know how financial system functions, that lenders and financiers can stand and see proceeds of their own credit facility diverted to other destinations that are not clearly stated in the loan covenants,” the government said.

In separate details provided to PREMIUM TIMES, the state government said the Olympia Hotel which had been comatose for 30 years was only revamped in 2012 and leased same year to Centrum Properties Limited & Cenpropsaroten Hotel Management Limited with a projected income of $1million, being concession fee and rent.

In addition to the concession fee, the new managers shall pay rent annually to the government after first five years, the government said.

Other asset include Supapod Building, leased to Artee Industries Limited in June 2011 with N200 million as projected income; and Hotel Presidential leased to Courdeau Nigeria Limited in 2009 with a projected income of ₦200 million yearly for first five years, and ₦220 million in second five years.

The government said it did not divert any income or proceeds from the deals.

“It simply beats my imagination that someone like him (Mr. Princewill) who has been on the corridors of power in this state that should know better, will peddle such falsehood and derogatory information relating to the public expenditure of the state,” the finance commissioner said.

The government accused Mr. Princewill of initiating efforts to gain from many projects in the state.

“It must be noted that Tonye Princewill has himself originated and anchored several projects and transactions in the state geared towards his own pecuniary gains,” it said. “Meanwhile the outcome of such projects remain questionable and far from the set objectives.”

The government said the Amaechi administration has instituted fiscal reforms that ensure transparency and to check corruption.

“It is on record that the Rivers State remains the first and only state that maintains a dual international credit rating from Fitch and Standard and Poor’s. This is no mean feat considering the rigorous process of not only obtaining the ratings but also constantly sustaining and improving it,” the government said.

SOURCE: http://naijapolitica.com/2014/12/26/rivers-state-gov-rotimi-denies-funding-apc-campaigns-with-state-money-releases-details-of-concessioned-%e2%80%8eassets/

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