DTSG opens up on Delta Line equity divestment, lists MoU terms; firm ran aground by profligate management

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Delta State Government opened up this afternoon on the divestment of majority equity from the state’s transport company, Delta Line, which Memorandum of Understanding (MoU) was signed earlier today between government and the management of God is Good Company Limited.
At a post-Executive Council Meeting press briefing held with journalists in the Press Centre, Government House, Asaba, addressed by the Commissioners for information, Mr. Patrick Ukah, Commissioner for Transport, Mr. Vincent Uduaghan and the commissioner for Finance, Mr. David Edevwie, it was pointed out that it became necessary for government to concession the company on Public Private Partnership (PPP)basis as the only means available to improve the services of the company which fortune had been ran aground by a profligate management. “The management of Delta Line owed N500 million in debts. They sat on their own, took decisions without recourse to government, took loans from banks without government’s approval,” Mr. Uduaghan said.
He pointed out that divesting 60 percent of what the state government own in the company was to enable the company achieve better operations. “The name Delta Line is not going to change,” Uduaghan assured, pointing out that the move is to help attract funds to run the company, pleading that people should not allow the matter to generate emotions.
Also contributing answer to questions by the journalists, the Commissioner for finance, Mr. David Edevwie described aspects of the MoU to include the following:
• That the arrangement is a partnership in which 60 percent equity of the state government is divested.
• That Delta Line will retain the Chairmanship stake in the company.
• The name Delta Line will be retained.
• There’s going to be a board in which Delta State will have 40 percent members.
• That board decisions shall be based on two-third majority.
• That God is Good management will bring in new technologies to run the company.
• That it will build proper stations.
• It will bring in finance to beef up the number of vehicles in the fleet for the company’s operations.
Mr. Edevwie who also announced that discussion is still on-going between the state government and the management of God is Good, disclosed that the number of staff to retain would be subject of discussions. “Staff that will operate in the company would be Deltans,” he pointed out.
Edevwie disclosed that the Union told the government at a meeting that over 20 percent of staffs of Delta Line are of retirement ages. “Delta Line is not sold, Government only divested,” he assured.
Besides, he disclosed that the company is owing debts to the tune of N500 million, a liability which the new investor is inheriting. He declared: “Evaluation of the company was done, and we insisted that if God is Good Company Limited is taking over the company, it must also inherit the liability, while staffs who will not be absorbed in the new dispensation would be transferred to other departments.”

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