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US FIRM RAISES ALARM OVER ALSCON SALE DISPUTE
LAOLU AKANDE
NEW YORK
The government of the United States have been invited by a US district
Court in New York to make its view known on the ongoing dispute between
a US company BFIG and a Russian firm, RUSAL on the issue of BPE's
privatization of Nigerian's Aluminum company, ALSCON in Akwa Ibom
State, reports Empowered Newswire, a US based Nigerian news agency.
Justice William Conner issued the order earlier this month in a civil
proceedings brought against RUSAL, an international aluminum company
with offices in New York by a US company, BFIG. Both companies are
currently involved in a controversy regarding the rightful preferred
bidder on ALSCON.
The Judge wanted to know if the invited the US government would submit
its opinion on the fallouts of the BPE privatization process for the
sales of ALSCON majority shares, at about the same time the US company,
BFIG, that had initially won the bid is raising an international alarm.
In a statement released yesterday in the US, BFIG is warning against
what it says is an imminent BPE handover of the Nigerian Aluminum
company to RUSAL, the new preferred bidder due to pending national and
international legal actions on the bidding process. RUSAL, a Russian
Aluminum company, is among the top three Aluminum companies in the
world, however it also sustains a controversial reputation.
In February, both BPE and ALSCON agreed to a Share Purchase Agreement
whereby RUSAL would pay $250m for ALSCON's majority shares. BFIG's
initial successful bid was for $410m and a million dollar deposit
already in FG's
coffers.
In
the statement BFIG, the US company stated that it was directing its
warning to "RUSAL of Russia, Bratsk Aluminum, RUSAL America Corp,
Dayson Holdings Ltd. (herein collectively referred to as “THE RUSAL
GROUP”) and Any and All Parties including their agents in whatever name
called regarding discussions or negotiations or handover affecting
acquisition, ownership, management, contracts, investments and other
material issues concerning the Aluminum Smelter Company of Nigeria
(ALSCON)."
Citing ongoing legal actions, including a civil suit instituted by BFIG
in a US court seeking damages of $2.8 B from RUSAL on charges of unfair
competition, BFIG stated that "anyone be it international or
domestic and by whatever name called who chose to interfere with the
sale /purchase contract, business advantage, the use of unfair
competitive means including corruption, fraudulent conspiracy to
acquire by way of blind-trust, purchase, invest, finance or
take-control of ALSCON is doing so at its own risk."
Recalling that BFIG won the public bidding conducted in 2004 by the
National Council on Privatization (NCP and was legally declared the
“Preferred Bidder”, the statement added that the US firm submitted a
business plan to expand U.S.-Nigeria trade and industrial relations. It
said the plan respects the environment, labour, local content and
capacity building, while also selecting a U.S.-based CEO of Niger Delta
origin to support the economic development and empowerment of the
region.
The statement quoted a March 2, 2006, opinion of Federal High Court
Justice Stephen Adah which dismissed previous BPE Claims that BFIGroup
defaulted in its payment obligation after the it initially won the
bidding.
Restating its position, BFIGroup said it did not fail or refused to
sign the share/sales purchase agreement, as and when required neither
did the US company refused to pay the negotiated Bid price in
accordance with the terms of sale”
BFIG added that a Nigerian Court of Appeal proceedings on the dispute
arising from the sale is also ongoing, warning that any handover of
ALSCON to RUSAL, " a disqualified bidder undermines the
substantive suit APPEAL No: CA/AB/261/2005 now before the Appeals
Court and is disrespectful to the Nigerian Court System and harmful to
the image of the Nigeria."
Earlier this year, in March, BFIGroup filed a $2.8 billion lawsuit
against RUSAL/Dayson Holding Ltd. at the US District Court in New York,
where RUSAL has an international office. In that case, the Russian firm
disclosed that it was yet to make a payment on the ALSCON deal even
though the Share Purchase agreement was signed in February and later
extended till July.
BFIG filed a civil action suing RUSAL for interference with its BPE
contract, unfair competition and conspiracy to commit fraud. RUSAL has
also responded to the US court action which is expected to be
determined by year's end.
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Posted by Robot| 01.12.2006 23:16