Controversy stalks handover of Eleme complex

08-Aug-06

Despite the failure of Indorama Petrochemicals to pay the full value of the purchase price of the Nigeria's only petrochemical company, the Federal Government is prepared to hand over the Eleme Petrochemical Company Limited to Indorama. Indorama has failed to honour its financial obligations due to inability to secure funding from the International Finance Corporation, the investment arm of the International Monetary Fund (IMF). The IFC has so far refused to grant the request because Indorama is unable to provide the deed of transfer and a letter of attorney. The original letter of attorney issued by the NNPC for the sale of EPCL had mandated the BPE to sell 51% of the company, but the BPE in a move said to have been forced on it by high government sources sold 75% of the company to Indorama The controversy got deeper at the weekend as the Federal Government through the supervising ministry has ordered the Nigerian management of the complex to handover the running of the company to Indorama. Meanwhile, the National Union of Petrochemical and Natural Gas Workers (NUPENG) has petitioned the Senate seeking parliamentary intervention into the affair on the basis that past efforts at privatising other national institutions like NITEL were stopped on the failure of the investors to honour their financial obligations. Indorama had won the public auction for the privatisation of 75% of the assets of EPCL with an offer price of $200 million and was expected to pay 10% of the purchase sum within 10 days and the remaining balance within 60 days. However, the company has been able to pay only about 40% of the purchase sum, necessitating postponement in payment schedules.