Delta State governor, Mr. Ifeanyi Okowa, has sanctioned the sale of Delta Transport Services Limited (Delta Line) to GIG Transport Development Company Limited (God Is Good Motors) for N161 million. The acceptance of the price offer was sequel to the rejection of a N2 billion bid from Delta State chapter of the Nigeria Labour Congress (NLC). The curious sale of the company to GIG Motors has resulted in the sack, without payment of compensation, of the 730 workers of Delta Line.
SaharaReporters learned that the sale, executed without due process, left the state government with 30% stake in the company, handing 70% to GIG.
A Delta State Ministry of Justice document seen by SaharaReporters indicated that the name of the company will be changed after five years. To hatch the plot, a top government official told SaharaReporters that Mr. Okowa used Mr. Kingsley Emu, Finance Commissioner, and Chairman, Partial Privatization Of Delta Transport Services Limited; Mr. David Edebvie, Commissioner for Economic Planning; and Mr. Peter Mrakpor, Attorney-General, and Commissioner for Justice.
According to the government official, the asset was deliberately undervalued because Mr. Okowa was buying by proxy.
“The real part of the deal between, which is yet unknown to most people, is that Mr. Okowa is the real buyer of the company but has decided to use the God Is Good Motors as front and after five years, the company’s name will be changed,” the top government official told SaharaReporters.
He also disclosed that the owner of GIG Motors contributed Mercedes-Benz buses to the governorship campaign of Mr. Okowa.
“It was because of that the governor directed Mr. Edevbie to advertise for bids, which was a formality, as the transport company was sold for N161 million and a bid of N2billion by the NLC was turned down,” explained the government source.
