The statement said BFI Group Corporation was unable to pay the agreed 10 per cent of the offer price as directed by the Supreme Court. The Supreme Court directed that the 10 per cent must be paid within 15 working days of the execution of the Share/Sales Purchase Agreement (SPA).
The deadline for the execution of the SPA and payment of the 10 per cent of the offer price elapsed on March 18.
“As at that deadline date, BFI Group had neither executed the SPA nor made the initial mandatory 10 per cent of the bid amount,’’ the statement said.
The statement added that BFI Group Corporation was expected to execute the SPA and pay the agreed 10 per cent of the offer price of 410 million dollars within 15 days of the execution of the SPA.
It added that “BFI Group Corporation, in total disregard of the apex court, drafted and executed an agreement that was different from the one ordered by the Supreme Court.”
The BFIG has returned to the Supreme Court pleading the apex court to compel the BPE to get to RUSAL comply with the order dismissing it from the plant.
While the apex court’s decision is being awaited, brickbats are flying about. BFIGroup Corporation is accusing RUSAL of looting the assets of the firm in order to stifle its operations.
A 50,000-litre oil tank belonging to the company was recently discovered in nearby Ibom Power Company, which is owned by Akwa Ibom State Government. RUSAL said it loaned it out. BFIG believes it buttresses its allegation of assets looting.
Executive Vice President (Media Relations) of BFIG, Frank Scherer, said it was unclear under what condition RUSAL transferred the oil tank to Ibom Power and asked the Federal Government to take action against such atrocity.
Scherer said: “Even after the Supreme Court, the highest court in Nigeria, in its ruling of July 6, 2012 ordered the BPE to take over the plant and prepare to hand over to the preferred bidder that emerged at the end of the bid exercise in 2004,the privatisation agency has always neglected to do its job.
“Reports of massive asset striping and illegal removal of critical assets of ALSCON have always been reported to BPE against UC RUSAL. But, it is a shame that BPE has always shown that it has other selfish interests to protect over this national asset.
“This is a disturbing development when BPE keeps denying and deceiving Nigerians and the Presidency about the serial pillage at the company.”
The Chief Executive Officer of BFIG, Dr. Reuben Jaja, wrote to the Managing Director of Ibom Power, Gareth Wilcox, to demand some explanations over the transaction.
Jaja said: “On Wednesday, September 18, 2013, or thereabouts, a 50,000 Transformer Oil Tank and other equipment were illegally stripped and removed from the ALSCON’s premises and discreetly transferred to Ibom Power.
“As you may be aware, the legal proceedings, with regard to the transfer of ALSCON ownership to BFIGroup Corporation USA, are now before the Supreme Court of Nigeria.
“Despite the order of injunction placed by the apex court, we have received information from the public and media with regards to the widespread asset striping, criminal vandalisation and outright sale of ALSCON property. Consequently, I urge you to secure the property as our legal counsel will be contacting you shortly.”
But, UC RUSAL Director, Communication Tatyana Smirnova said the missing oil tank was not illegally transferred to Ibom Power.
Smirnova said in a newspaper interview: “No illegal stripping or removal of 50,000 litres transformer oil drain tank from the ALSCON’s premise has occurred. ALSCON is the owner of the 50,000-litres cylinder steel tank (Transformer oil Drain Tank).
“In compliance with the request for assistance from Ibom Power Company, ALSCON has allowed Ibom Power Company to temporarily borrow the Steel Tank in accordance with the terms and conditions of Guarantee Letter signed by both parties.
“Additionally, Ibom Power Company is responsible for the loading and transportation of the Steel Tank to and from Ibom Power site at Ikot Abasi under the strict supervision of ALSCON personnel.”
Workers of the ALSCON and Ikot Abasi community youth group have also accused UC RUSAL of stripping the plant of core components to cripple its operations.
The workers, under the aegis of the Metal Products Senior Staff Association of Nigeria (MPSSAN), said: “The Russians have put everything in place to siphon the remaining coke and alumina from the silos for sale. When they took over the plant in 2007, they inherited over 8,000 metric tonnes of alumina; 5,200 pieces of Anode Blocks; 5,820 pieces of cathode blocks; over 8,000 Anode Stems; over 200 tonnes of cryolite and over 170,000 tonnes of cast iron. Why they now want to sell even cast iron blocks, together with the pots, is mind boggling.”
Smirnova described the allegation as “misleading and does not correspond to reality”.
“Presently, ALSCON is cleaning its territory from unrealisable assets, obsolete and not suitable for use equipment, which cannot be utilized for production of aluminum,” she said.
She added: “In addition, I would like to emphasize that the acquired equipment is the property of RUSAL and makes a part of modernisation programme that was implemented from 2007 till 2012. RUSAL has put around $US159.4 million of its own investments into the plant.”
The BPE believes BFIG has not been fair to it on the ALSCON matter. Its Director-General Benjamin Dikki was quoted in an interview as saying the agency would not take BFIG seriously. He accused the American firm of instigating reports about ALSCON in the media and causing the BPE troubles.
As the battle for the firm rages, a lot of things are suffering. One is the electricity the national grid could have benefitted from the company’s gas-fired plant. The power plant is capable of satisfying the electricity needs of the company and also supplying the excess power to the national grid. Annually, 360mw can be supplied to the national power grid after the company has taken its own need. The plant has a capacity for 540mw.
A monitoring committee set up by the Ministry of Power to address the national grid problem has yielded no good result.
Smirnova said: “This is because there is no infrastructure available, the 330/132/33kv Ikot Abasi substation, the Ikot Abasi-Ikot Ekpene NIPP line, and other infrastructure are unavailable. Besides, the acquisition of the licence for operation needed for connection by ALSCON and PPA are deliberately delayed, although all needed steps and procedures have been accomplished by ALSCON.”
Gas has also been a challenge to the company. Smirnova explained that a key precondition for ALSCON’s successful operation was an uninterrupted supply of natural gas at reasonable prices.
She said: “ALSCON has suffered six lengthy disruptions in gas supply which resulted in complete stoppage of aluminium production, losses of about $60 million, and long rehabilitation periods.
“On June 21 to 23, the gas pressure in the pipeline reduced to zero level, resulting in more losses of over N11million. A possible solution to ALSCON’s gas problem would be the speedy completion of the Esit Eket-Ikot Abasi pipeline by the Federal Government.
“When RUSAL was considering acquiring its stake in ALSCON, the promised availability of this crucial resource made RUSAL take decision to invest in Nigeria. RUSAL invested around USD160 million between 2007 and 2012 in the modernisation and development of the smelter.
“Until the power supply issue is resolved, there will be no chance for ALSCON to resume its primary aluminium production. Moreover, further delays in connecting the smelter’s power to the national grid expose the smelter to the risk of existence, as RUSAL actually has depleted all resources in its efforts to subsidise the smelter.”
Despite the tussle, the Russian firm in the name of ALSCON just commissioned a water project at Ediduo community in Ikot Abasi Local Government Area of Akwa Ibom State.
The project was inaugurated at Edemaya Clan. The inauguration of the project brings to 15 of such water projects implementation by the company as part of its commitment to the development of the communities through investment in life-enhancing programmes aim at addressing, the social and economic well-being of the people in the region.
Smirnova, who spoke while inaugurating the water facility, said: “The project we are commissioning today is the second water project our company has provided for the people of Edemaya clan. It is also the 15th project the company has undertaken in Ikot Abasi Local Government Area since the programme was initiated in 2010.
“Indeed, the event is a fulfillment of the assurance the management of ALSCON gave recently that, despite the challenges facing the company, ALSCON will continue to implement projects, which help to improve the well-being of the people of Ikot Abasi and the neighbouring communities.
She said UC RUSAL has continued to fully meet its social obligations to the staff. According to her, salaries are paid on time and in full, the members of staff continue to live in comfortable estates with 24 hours free electricity, water supply and health care.
A statement in Uyo said ALSCON has not suspended any of its social programme aimed at improving the well-being of the residents of local communities such as free electricity to communities, the annual scholarship program from 2009 to 2013, where over 200 indigent students have benefited in addition to N720,000 monthly support to three schools in Ikot Abasi.
She said the water programme is to compliment the Federal Government’s effort at ensuring that, 75 per cent of the citizenry have access to safe drinking water by 2015 in line with the United Nation’s Millennium Development Goals (MDGs) and World Health Organisation’s safe water scheme.
But, in all these, the alluminium for which the company was founded is not being produced. The dispute has ensured that and from the look of things, until the dispute is resolved, things will continue to fall apart at the multi-million dollar empire.
