The Sokoto State Government’s claims that N16.1 billion shares were diverted by the former management of Sokoto Investment Company are laughable and outrageously false, an immediate past board chairman of the company, Muhammed Bello Aliyu Goronyo, has revealed.
The state government’s counsel, Mr Amanzi F. Amanzi, claimed that N16.1 billion shares were allegedly diverted while appearing before the Sokoto State Commission of Inquiry, which was set up by Governor Ahmad Aliyu’s administration to probe the sales of the state’s shares by the investment company during the tenure of former Governor Aminu Waziri Tambuwal.
Mr Amazi said, “Sometime in 2018, the Accountant General transferred all the government shares through a letter to the Sokoto State Investment Company Limited. And between 2022 and 2023, these shares were sold and unaccounted for.
“So the commission has been called upon to investigate the sales of these shares and the whereabouts of the money. Based on the memo’s content, N16.1 billion Naira is alleged to be unaccounted for.”
Mr Goronyo said the N16.1 billion shares only existed in the phantom imagination of the current administration officials, “because only shares worth N3 billion, not N16.1 billion, were handed to the company in 2018.”
He said the state government has thrown caution into the air by twisting facts – all in a desperate and calculated attempt to tarnish the image of Governor Tambuwal’s administration.
The former board chairman said it’s on record that the corporate governance and financial credentials of the company during Governor Tambuwal’s administration were not only excellent but in total compliance with global best practices.
Providing details of the shares handed over to the company in 2018, Mr Goronyo said, “The state government claimed in its submission to the commission of inquiry that 573,458,924 units of UBA Plc shares, at N26.50 per unit, with a total value of N15,1999,046, 489 were transferred to the company. These claims are false, misleading and mischievous. Official records revealed that UBA Plc, at the time of taking over, was 488,020,300 units, with a unit value of N5.18 and a total value of N2,527,945,154.
“In its submission, the state government also alleged that the BUA Plc shares were 42,105,917, with a unit price value of N18.80 and a total value of 791,591,239.60. This is another intended misinformation. Records have shown that the actual BUA share was 39,265,991, with a unit price of N4.50 and a total value of N185,256,368.
“They again erroneously and mischievously claimed that the Unity Bank shares were 70, 055,557, with a unit value of N2.50 totaling N175,138,892.50. However, at the time of transfer, the value was N64k per share totalling N44,835,556.48.
“The Niger Delta Power Development Company has a total share of 22, 946, 222 at a unit price value of N1. These shares were not disposed of as of May 29th 2023.”
Mr Goronyo added that by the foregoing, “the state government’s claims of N16.1 billion shares handed over to the investment company in 2018 was bereft of decency and honour.”
The truth, he said, was that “Sokoto State Ministry of Finance handed over shares worth N3,062,507,971.36 (not N16.1 billion as falsely claimed by the state government) with different stockbrokers and different account names such as the Ministry of Finance, Ministry of Finance Incorporated, Sokoto State Government, amongst others.”
He said, “These shares were identified and consolidated into one single account the ‘Sokoto Investment Company Limited’ for transparent, effective and efficient management. The company also embarked on the onerous task of recovery and after the consolidation exercise, the total portfolio value rose to N6 billion.”
The former board chairman said a total of N8 million stale dividend warrants from the Ministry of Finance were received, while the company recovered unclaimed dividends of over N100 million in its first 12 months of operations.
On the alleged series of non-descript transfers to 36 corporate and personal accounts, Mr Goronyo said, it’s on record that the investment company during the said period maintained strong corporate governance and accounting systems.
“All transactions conducted by the investment company are well documented and with consideration of value for money in the quest for achieving its set mandate. The state government is therefore challenged to provide any evidence of non-descript payment made to any individual or company.”
He said the company embarked on diversification of the portfolio from 100% in the capital market to have a balanced portfolio, reduce risk, increase potential returns and enhance the company’s liquidity.
He said, “The divestment of UBA shares at an average price of N8.10 as of August 2018, successfully reduced the capital market concentration risk which was flagged by two reputable stockbrokers. The declining UBA share price as of April 22, 2019, stood at N5.60, thus saving the portfolio over N750 million within 12 months.
He said the divestment processes led to the creation of other marketable and risk-free business entities worth over N30 billion when completed. These joint ventures and partnerships include the reconstruction and remodelling of the Sokoto Central Market, the acquisition of mining licenses, the Sokoto affordable housing estate situated at Sokoto New City, the construction of a new Modern Market within the metropolis, the establishment of international onion market with a state-of-the-art storage facility, amongst others.
Mr Goronyo dismissed the “painstaking efforts of the state government to rubbish these visible and undeniable achievements of the investment company,” saying that, “we are fully ready with facts, not fiction, documents and pictures to engage anyone on the stewardship of the company during the previous administration.”
