Speaking at the handover ceremony recently in Iwopin, Ogun State , Vice President and Chairman of the NCP, Arc. Mohammed Namadi Sambo declared that the handover of the company is another important milestone in the administration’s effort to revive the nation’s paper manufacturing companies.
The Vice President who was represented by the Director General of the Bureau of Public Enterprises (BPE), advised the core investor that the role of BPE did not stop with the handover; adding that the BPE would continue with its monitoring responsibilities as enshrined in the Share Sales and Purchase Agreement (SPA).
Earlier, Chairman of BETCO, Dr. Tunji Braithwaite reassured the community that BETCO would be alive to its Corporate Social Responsibilities to create jobs for the immediate community and Nigeria at large and improve the economy of the area and by extension, Nigeria.
The privatization process of Iwopin Pulp and Paper Company Limited started in 2001 with the advertisement for expressions of interest published in 2002. BETCO won the bid with an offer price of N3.1 billion.
However, due to several unresolved issues, especially the forestry plantations concession license, BETCO refrained from paying the bid price and in the process, BETCO took the Federal Government to court to restrain the BPE from annulling the sale and realizing the bid bond of $750,000 without resolving the outstanding issues.
The core investor and BPE eventually negotiated an out of court settlement with the consent judgment obtained at the Federal High Court, Lagos on December 6, 2013. To conclude the transaction, BETCO was asked to pay N1 billion and in addition, compensate the land owners and secure the forestry concession license from both Ondo and Ogun state governments.
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