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Man sues Bauchi govt over privatisation of 5 companies 

A businessman Abubakar Abdullahi has filed a suit against Bauchi State Government to stop the privatisation of three government owned companies and leasing of two Hotels for 25 years.

Last August the state government privatized Bauchi State Fertilizer Blending Plant, Bauchi Meat Factory, Galambi Ranching and leased out Wikki and Zaranda Hotels in order to make the companies work, generate revenue and create employment opportunities in the state.

Counsel to the llaintiff Barrister Ahmed Accanny who filed the suit before Bauchi  State High Court number two presided over by Justice Hamidu Kunaza asked the court to declare that the purported privatisation of the state owned company was devoid of transparency, prudence, against international best practices and inimical to the overall economic development of the state and is null and void.

He argued that the purported bid for the said companies were carried out in a manner devoid of transparency as required by section 4(1) of the Bauchi State Privatisation law 2006.

Accanny said contrary to section 4(ii)(a) of the privatiisation law 2006, which mandates the Bauchi State Bureau for Privatisation and Economic Reforms to act aa a prudent share holder in managing and preparing state enterprises for privatisation, and alleged that the  said Bureau has in flagrant violation of its sanctimonious mandate gone ahead to accept ridiculously low bids for public assets.

Counsel to the plaintiff argued that “Bauchi Meat Factory whose 75%stake was purportedly sold for N301mn has the capacity to generate over 400mn revenue annually, while Fertilizer and Blending Company which was sold at N400mn is grossly undervalued since the physical structures and assets of the company are clearly worth over N1 billion”

Accany said that “the purported rate at which the two Hotels Wikki and Zaranda Hotels were leased out was low because Zaranda Hotel has over 80 rooms, swimming pool, conference halls and other businesses and luxury services will yield a ridiculously N133,333,33 perday, while Wikki with numerous rooms will yield a mere sum.of N22,222.2 perday is too low.

The plaintiff counsel said that Galambi Ranching  which was purportedly acquired for the sum of 150mn was grossly undervalued by as much as half of its actual.value.

He said in direct opposite to section 4(ii)(i) and section 10(i)(b)  of the privatisation law of the State 2006, the companies were sold for a fraction of their actual.worth and there by short changing the government and people of the state, which will lead to many people to loose their Job in the said companies.

Justice Hamidu Kunaza adjourned the suit to Thursday 13th October for mention.

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