Bayelsa clears air on alleged $40m scandal

07.05.2008

Bayelsa State government on Tuesday cleared air on the alleged $40 million scandal, saying that it only stood as guarantor for the Bayelsa Oil Company so as to ensure approval of loan by banks.

Describing the publication in some of the national dailies as misleading, the Commissioner for Finance, Dr. Silva Opuala Charles, said there was no iota of truth in the reports that the government paid $40 million to the company.

Opuala said that no provision was made for the company in the 2008 appropriation bill, bearing in mind that it was private sector-driven, adding that it would be wrong for individuals or group of people to disparage the administration of Chief Timipre Sylva.

The erstwhile governor, according to the commissioner, had earlier made his stand known on the company by stating that the company would be jointly sponsored by both the private sector and the government.

He said because it was not a venture to be undertaken by government, it was not provided for in the 2008 appropriation bill and could, therefore, not have been referred to the House of Assembly.

The commissioner said it was the philosophy of the administration of the former governor to empower and provide opportunities for the pepole of the state to participate in oil and gas industry businesses and decided to fine-tune the framework establishing the company, preparatory to the take-off of government industrialisation.