Leadership (Abuja)
Betrand Nwankwo
31 July 2008
Contrary to the report that Transnational Corporation of Nigeria (Transcorp) used unsecured oil block to negotiate for the purchase of Nigeria Telecommunication Limited (NITEL), the company has said that it followed due process in the application, bid, award and payment for oil block- OPL 281.
Report emanating from the ongoing investigations of the activities of the Department of Petroleum Resources, DPR, House of representatives ad-hoc committee probing the oil sector alleged that the firm used an oil block it had not paid fully paid for to secure NITEL, but Transcorp said it followed due process principle in the transaction.
In a statement made available to LEADERSHIP yesterday, Transcorp said that it complied with the request of the House of Representatives Ad-hoc committee, by sending a memorandum, which contained all the documents to support its acquisition of the oil block.
According to the statement issued by Transcorp's Vice President, Corporate Communications, Mr. Adedayo Ojo, the company affirmed that it participated in the 2006 oil block bid round, and was successful in its bid for two blocks - OPL 281 & OPL 295. "The required deposits were paid on both blocks. Following some controversy around OPL 295, Transcorp requested that the payment for both blocks be consolidated and applied to the bonus payable in respect of OPL 281", the statement said.
It continued: "In a February 2007 letter, the Department of Petroleum Resources confirmed acceptance of Transcorp's request for payment consolidation as well as terms of fulfillment for other obligations to the DPR in respect of OPL 281".
On the issue of securitisation of a bank loan, the firm explained that because the issue of asset securitisation is a business transaction with lenders and financial partners with confidentiality clauses, it is not prudent to disclose details but assured that all assets for loans were supported by Transcorp's rights to those assets.
The state quoted Transcorp's group managing director, Mr. Tom Iseghohi as saying: "We are pleased that the House of Representatives is interested is conducting investigations to activities which will help to understand the past and better shape the future. We assure that Transcorp is committed to best traditions of ethical business conduct. If however, there are issues, we are prepared to deal with such issues in order to continuously improve our processes and achieve our goal of becoming the most successful conglomerate in Africa.
"Although the acquisition of government assets at the inception of Transcorp was a short term strategy, we remain committed to transforming all of those assets by attracting the right partners and funding which will assure the achievement of Nigeria's economic goals as well as promote free market ideals of competition and efficiency", Iseghohi said.
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