Monday, 22 June 2015

Ebonyi State Government Come For Two Companies That Sold Fairly Used Turbine plants to the former administration at $12 million without explanation on the maintenance cost.

Ebonyi State Government has threatened to take necessary actions against two companies, the Cross River International and Callifco from United States over two fairly used turbine plants allegedly sold to the former administration at $12 million without explanation on the maintenance cost.

Governor Dave Umahi while addressing contractors handling various projects in the state at the weekend lamented that the state government has decided to resell the plants to the supplier because of the high cost of to maintenance, but Callisfco Company was only offering $7.5 million, 37.5 per cent discount.

Besides the actual cost of the turbine, he said over two hundred million was committed to them, saying, ‘’the plants use gas and diesel and total amount to be spent on each plant for gas is N178 million per month and to use diesel to run it is N500 million which means all filling stations in the South east will close for us to have enough diesel to run it.

‘’So we asked the company to buy it from us because the content of disclosure was not adopted when the turbines were sold to the state government and very painful is that that project was not a brand new.”

He admitted to be part of the team that negotiated the purchase of the turbine plants, “but because of their conditions I recommended that we shouldn’t buy it, but I was a Deputy Governor and cannot be more Catholic than Pope.

‘’Though turbines were purchased by the former governor with good intensions but the truth of the matter is that explanations about the plants were not made by the company to the state government until after the installations during test runs.”

He said the price offered by Callisfco Company to repurchase the plants was very annoying and that his government was ready to take the matter to any level including taking the matter to the government of the United States.

‘’We spent N2.7 billion and they are offering us N1.4 billion and to be paid after three years. So we are ready to pursue that matter up to USA and any level because nobody walks into Ebonyi State, cheats us and goes free,’’ he said.

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