Delta State government has refuted insinuations that it was surreptitiously selling its shares in some companies, stressing that such report was far short of the real situation. In a statement signed by the Commissioner for Information, Chike Ogeah, the government explained that the effort to divest its shares had only just begun and followed due process as it was approved by the Executive Council.

The statement reads: “The attention of the Delta State Government has been drawn to stories in some sections of the media on the purported sale of shares owned by the government in some companies.

“When the Delta State Government had resources to spare in the short and medium term, a decision was taken to invest in some viable ventures as a way of saving for the rainy day. That decision has undoubtedly paid off with the steep decline in the price of crude oil which led to a huge drop in the statutory allocation the state receives from the Federal Government.

“Given the very significant decline in the resources available to the state government as a result of the low price of crude oil, the government decided to sell its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited.

“In line with the provisions of the Fiscal Responsibility Act, the issue was tabled before the Executive Council which approved the commencement of the process of the divestment in both companies. Contrary to what is trending in a section of the press, no shares belonging to the Delta State Government have been sold yet. Rather, the process has just begun with the approval of the Executive Council.

“Again, contrary to the impression that the sale is being conducted unilaterally, due process is being strictly observed with the appointment of financial advisers to the exercise. The amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers. In effect, actual sale could see more money being realised. It could also be less.

“As part of the adherence to due process, existing shareholders in the two companies will exercise the right of first refusal in deference to the articles of association of both companies.

“We will stress here that the Delta State Government bought the shares at a time it had excess funds. The idea is not just to save for the rainy day but also to buy when prices are low and sell when high dividends can be assured. By all market indices, what will be realised from the sale will be a significant profit from the earlier investment.

“The enduring hallmark of the Emmanuel Uduaghan administration is its adherence to the rule of law and protection of the common interest of the people of Delta State. The government will never engage in any untoward transaction and there is absolutely nothing “controversial or scandalous” about the sale. We are aware of the fact that in these political times, even the most altruistic policy decisions will be subjected to mischievous interpretations by political jobbers. However, the government will not be distracted. In line with his vow to continue to work for the people, Dr. Emmanuel Uduaghan will see to the continuous attainment of his contract with the people of the state until the final day of his administration.”