DELTA
State Government has debunked insinuations that the state transport
service, Delta Line has been sold, saying that the company has been
repositioned for greater efficiency, improved profitability.
The
Chief Press Secretary to Governor Ifeanyi Okowa, Mr Ehiedu Aniagwu
Charles at a well attended press conference in Asaba, (29/08/17)
disclosed that Governor Okowa values the roles the transportation
company plays in the lives of Deltans and Nigerians in general and has
never contemplated sales of the company, adding that the state
government only divested 60 percent of its equity shares to ensure
greater efficiency and improved profitability.
According to him,
it has been discovered that over the years, the management of the
company had failed to deliver on the purpose the company was set up but,
rather, has incurred huge debts and also, failed to meet with its
contractual obligations to workers prompting government to look at
better ways to ensure that the desired results of rendering services to
Deltans was achieved while the state government makes money from the
company.
Mr. Aniagwu who debunked insinuations that the transport
company has been sold stated that Governor Okowa's administration has
the intention of divesting government interests in the company by having
40 per cent equity shares while a reputable transport company takes 60
per cent shares.
"Delta State government wants the company (Delta
Line) to remain as a going concern, that is why nobody can contemplate
sales of the company," he said, stating, "for anything, the name Delta
Line must be retained, so, we are going into a Public Private
Partnership (PPP), we are only partnering with the private sector that
has demonstrated so much confidence and ability to run the operation of
such business; there is no intention to short change the state, rather
the decision that was made is for the best interest of the state, the
best interest of Deltans, the best interest of the finances of the state
and above all, the best interest of the lives of everyone irrespective
of where they come from who will take advantage of this transport
service to move to and fro their different destinations; in a nutshell,
these are objectives behind the decisions in respect of divesting part
of state government's equity holding in Delta Line."
He
continued, "the insinuation that Delta State government has sold Delta
Line is false for what was done, was to divest some of government's
equity with a view to bringing-in private hands to efficiently pilot the
affairs of the cooperation and are looking at 60-40 equity holding as
against 70-30 that was reported in some quarters; this is to ensure that
the company comes in, reposition the Delta Line and put it on the path
of profitability and when that is done, we can talk about liquidating
the debt burden that at the moment has been the bain of the company."
"The
state government is mindful of the need to have a transportation
company that is efficient, effective and able to deliver to our people
and to have vehicles that can take them to places they desire to go at
the most reasonable costs and at the same time the image of the state
will remain intact at that high standard".
Aniagwu stressed that
the state government believe that over the years the Delta Line that was
set up with very good intentions have not been able to live up to its
expectations, both in terms of delivering on its obligation to the staff
of the cooperation and also obligation to the state government who have
put in enormous amount of funds in ensuring that the entity run as a
viable transport company. Flanked by media aides to Governor Ifeanyi
Okowa Mr Aniagwu said,
. "In the last two years government have
taken pain to study the cooperation and how it is being run with a view
to properly repositioning it and in the course of that study, it was
discovered that it is practically impossible for government to
effectively run it in such a way that it brings about efficiency that is
desired and at the same time guarantee profitability; having done that
review on the processes that run the operations of the company, we felt
it was necessary for us to take a second look and in taking that second
look, it became obvious that we needed experts and a private sector
touch without taking away that aspect of the government's ownership. And
what did we do? We first placed adverts sometime in December 2016 in
two major newspapers - ThisDay and Vanguard to invite people to be part
of this equity holding and after that we felt the need to still extend
the deadline to January 2017, and in doing so, we also advertised in the
state owned newspaper, The Pointer; after these adverts were closed and
the bids closed and we scrutinized the individuals and organization
that bided, we found one to be commercially, operationally and
financially competent to be able to meet our recommendations on
improving the transport sector and also delivering to our people, but, I
can tell you that no Memorandum of Understanding has been signed yet
but we have made appreciable progress in that direction."
On the
NLC bid, Mr Aniagwu explained that the union apart from bidding late
didn’t have the proven technical, operational and managerial competence
to run such a company, stressing that the state government was
interested in ensuring that Delta Line was run by competent hands that
would ensure its continuous existence.
He averred that the MOU
which would soon be signed provided for the retention of the company’s
brand identity and identified competent staff, while ensuring the
company was brought back to profitability.
Photos:
Gov Okowa's Media Aides led by Mr. Aniagwu Charles (middle); Chief
Press Secretary to the Delta State Governor, Prince Efeizomor Victor
(3rd right) S.A on Media to the Governors; Special Assistant to the
Governor on Electronic Media, Mr. Udemba Amaechi (3rd left); Special
Assistant to the Governor on Community Newspapers, Mr. Jonathan Onwuka
(2nd left); Special Assistant to the Governor on Media, Mr. Nelson
Egware (left); Special Assistant to the Governor on Social Media, Mr.
Godspower Omafuvwe Asiuwhu (2nd right) and Political Aide to the
Governor, on Special Duties Media, Mr Ossai Ovie Success, during a Press
briefing with Delta State Journalist (NUJ) in Asaba On Alleged Sale of
Delta Line