BFIG QUERIES RUSH IN ALSCON HANDOVER DESPITE
EXPECTED APPEAL RULING
Laolu Akande
BFIG, the US-based company that bided and initially won
the privatization of Aluminium Smelter Company of
Nigeria, ALSCON, is questioning the "rush" in the
handover of the company to RUSAL, describing the
action as a lawless act on the part of the federal
government.
BFIG defeated RUSAL in the open bidding conducted in
2004 for ALSCON, but has since then been locked in a
battle after the federal government changed its
mind preferring to offer the company to RUSAL which
bided lower.
BFIG's Nigerian born, US-based President and Chief
Executive Dr. Ruben Jaja said on Thursday that it was
shocking that the government went ahead to handover
ALSCON to RUSAL even though court proceedings on the
dispute was still in progress.
"Do you believe that the Nigerian court of appeals
completed closing arguments on the 19th of February
and recessed for final ruling or judgement on the
matter," Jaja queried.
He observed that the handover was done despite the
fact that the federal government had also
received "advanced copy of our court injunction
against the handover filed with the High Court of
Nigeria in
Abuja and the public warning issued via the
mass media outlets.
On Tuesday RUSAL took over the company giving an
assurance that it would make an additional investment of
$150 million dollars (N20 billion) in the plant over the
next three years.
But in
New York, there is another court proceedings
instituted against RUSAL by BFIG on grounds that RUSAL
violated an agreement between them and the federal
government and interfered with BFIG business having
initially won the open bidding for ALSCON with a $420m bid
way above RUSAL's $200 bid.
The company wrote the Judge hearing the case, Hon.
William C. Conner, accusing RUSAL of continuously
disregarding legal proceedings. In the letter, BFIG noted
that the matter is before a Nigerian Court of Appeal, which
still has about 90 days to provide its opinion in the
matter.
US district court papers indicate that RUSAL had informed
the New York court that it does not plan to take any action
on ALSCON including any plans to takeover the plant before
Tuesday's handover in
Nigeria.
BFIG said RUSAL's plan to take over the plan is an
audacious demonstration that RUSAL and the Nigerian
government does not respect the impending court orders or
judgement of the Nigerian judiciary on this case.
Furthermore in the letter to the US Judge, BFIG noted
that both RUSAL and the Nigerian government "continue to
engage in conduct that defies the norm of acceptable
business practices, all to the injurious detriment of
plaintiff BFIG. One must certainly ask why Defendant RUSAL
and the Nigerian Executive Branch rush to conduct this
handover, when the ruling from the Court of Appeal can be
issued at any moment."
The BFIG letter to the Judge then asked the US Judge to
take these developments into consideration when making its
ruling in the case.
BFIG, the US company has enjoyed the support of the US
government in its dispute with the federal government and
RUSAL over ALSCON with US congressmen and senators alongside
Commerce Department officials speaking and writing in
support of the company.
