The Delta State Government has explained its decision to sell part of its equity stake in Delta Transport Services Limited, saying that the company failed to be commercially viable.
Because of its nonviable nature, the state government was injecting capital into the company from time to time as a way of support because of its unique position as the only government-owned and branded transport company.
A statement signed by the Media Assistant to the State Commissioner for Information, Mr. Sam Ijeh, revealed that the state government in the past invested heavily in the company through the provision of 160 brand new Toyota Hiace Buses, 76 brand new Toyota Corolla Cars and other incentives in cash or kind.
Furthermore, from 2012 to April 2015, the state government released monthly palliatives to the company to mitigate the effects of fuel-price increase which occurred at that time.
According to the statement, unlike others who benefitted from the allocation of the government buses, Delta Line never remitted any revenue to the state government, instead the company was riddled with debts made up of salaries and wages of staff, allowances and claims of staff, contractors, and suppliers obligations.
The Media Assistant noted that the Workers Union interference in the affairs of management did not help matters.
In a bid to sanitize the company, government sacked the General Manager and suspended some other principal officers and directed the Directorate of Transport to supervise and oversee the activities of the company, with an inherited six-month salary debt.
He stated that to stem the tide of further deterioration, the government opted for sale of part of its equity stake and this was duly advertised in national dailies for expression of interest and respondents submitted their bids plus necessary documents in line with due process following which the successful bidder was considered.
The statement disclosed that the Nigeria Labour Congress (NLC) did not indicate interest at the time of advertisement and neither did it provide details of how it would source funds for the purchase of the shares to be sold, noting that the entire process followed due process and a memo was forwarded to the State Executive Council accordingly.
The company was allegedly sold to the Ajaere family – owners and managers of one of the most successful passenger carrier companies in Nigeria, GIGM.com, (God is Good Motors).
God is Good Motors, currently being run by Mrs Stella Ajaere alongside Chidi, wife and eldest son respectively of the late businessman Deacon Edwin Ajaere who passed away in 2009, funded Okowa’s election in 2015 by provision of buses for his campaign.
GIG Motors since then has been enjoying payback patronage from Okowa since inception and in the middle of the buy-off of which the Governor is linked.
Credible sources revealed that the new buyer who bought 70 percent equity share of Delta state Government in the business is fronting for Okowa and would run the company with the name Delta Line Transport Service Limited for a period of five years after which it would take full possession.
The Delta Line which has been ran ground during the management tenure of Mr. Isaiah Eyione who was sacked by Okowa on assumptions of office, is indebted to Zenith Bank and Wetland Micro Finance Bank which funded the purchase of buses leased to them.
Within the period of 2012 to April 2015, when former governor, Dr Emmanuel Uduaghan held sway as Executive Governor of the state, the company enjoyed so much incentives and grants as he (Uduaghan) reportedly released a grant running into about N4.5billion over a period of four years to the outfit.
Uduaghan was said to have also given the company 65 units of brand new Toyota Corolla cars valued at N300milion and in 2009, another 150 Units of Toyota Hiace buses valued at N1.2bilion were given to the company.
Also, in 2010, another 20 units of Toyota Hiace buses were given to the company by the state government valued at N140 million while in 2011, 15 units of buses valued at N105million were also given to Delta Line.
Despite these allocations of buses which were working on a daily basis before some of them were reportedly ran aground, the company’s management had allegedly failed to expand the company’s route and give account of how the buses were being managed till date.
It was gathered that since Okowa tenure, the transport company which also runs a Waterway Line and was generating about N2.5 million daily and an average of N80million in a month have not gotten a dime as grant to revamp the business and any incentive for running of the firm.
