Cletus Akwaya
2 May 2005
Abuja — A nxiety over the privatisation of Aluminium Smelter Company of Nigeria (ALSCON) has begun signalling possibilities of another botched attempt.
The latest fear stems from information that Rusal of Russia earlier disqualified from the bid process may have received the nod of the Federal Government to acquire the plant at $160 million, a price far below the $410 million BFI Group Corporation of America had offered to pay as preferred bidder.
The latest round of controversy has the National Assembly, particularly the House of Representatives which is angered by what it called uncompetitive meth-od adopted in the selection of Rusal of Russia as the core investor.
Apart from a motion on Thursday condemning the Federal Government's move, the House is proposing a probe of the entire transaction to ascertain allegations that Government officials consummated the deal in a less than transparent manner and therefore fraudulent.
The House's resolution came a week after reports indicated that representatives of Rusal had already arrived the Ikot Abasi, Akwa-Ibom-based plant to carry out an assessment of the facilities and equipment.
The officials, THISDAY was told, made a firm pledge to commence operations as soon as possible and return the moribund plant on the path of profitability.
Just as the House was passing the resolution, BFI Group officials were said to be putting finish touches to legal papers to drag the Nigerian Government and her officials before a US Court to seek enforcement of its right to take over the company having won the bid according to th rules set out by the BPE.
BFI Group , is said to have petitioned the US State Department for Commerce over alleged anti-American action exhibited by Nigerian Government for denying it the take over of ALSCON.
These international action by BFIGroup to re-claim ALSCON is in 0addition to a suit pending at Federal High Court Abuja in which the American firm which has a Nigerian President, DR. Reuben Jaja is seeking to restrain the Federal Government from handing ALSOCN over to Rusal or to any other person or company pending the determination of the suit.
BFI group's fears were heightened recently when the Federal Government included income estimates from the privatization of ALSCON in the 2005 budget, an indication that it may have gone ahead with privatization of the aluminium plant despite the susbsisting litigation.
Privatisation analysts who spoke to THISDAY expressed fears that the purported sale of ALSCON to Rusal might still fail as the proposed probe by the House of Representative was likely to make the environment hostile for any new operator of the plant.
"Aluminium is an international product. To deal in it requires a lot of good will. I doubt if any investor in such a vast plant can operate profitably with a lot of court cases hanging around his neck,' an Analyst maintained.
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