The Senate has expressed concern over what it called an abysmal performance of concessioned properties in the nation’s capital which it said had recorded negative Return on Investment to the Federal Capital Territory Administration (FCTA).
Specifically, it wondered why FCTA invested over N2.7billion through consessioning of some government properties in Abuja, with zero revenue accruing to the government.
Chairman, Senate Committee on Federal Capital Territory (FCT), Dino Melaye, stated this on Thursday while meeting with the FCT Minister, Mohammad Bello, on the concessioning of some government properties in the FCT.
“It is worthy of note that the revenue portion on investment income is always returned as zero over the years despite the barrage of investments owned by the Federal Capital Territory Administration. In view of this, the Honourable Minister is also expected to take the Committee through the perspective of concession of some Government properties in Abuja and the investment income accruable to FCT Administration by Abuja Investment Limited.
“Over the years it has been a disaster and we are not going to allow that to continue at all. Abuja has such investments and year in year out, you have zero return on investments. While these concessionaires are making billions of naira annually, no kobo is coming to government. This trend must stop and anyone found wanting must be punished because Nigeria is not a banana republic,” the lawmaker said.
He listed some of the concessioned properties to include: This Day Dome, Eagles Square, Sheraton Hotel and Towers, International Conference Center, Nixon Luxury, Abuja Investment Company Limited, Abuja Gardens, Karu General Hospital as well as Garki Hospital.
Responding, the FCT Minister said he had already set up an interim management committee to look at the concessions, which he said preceded the current administration.
The panel, which he said was inaugurated in May this year, would submit its report at the end this month.
He therefore asked for more time to enable the committee submit its report to him, while he studies same and brief the Senate panel on the outcome.
His words: “All the investments are issues that we were confronted with when we came in as an administration, as a result of the realisation that the FCT over the years had invested in so many projects.
“And obviously, it was very clear that not all the projects were operating the way they they should operate. And as a result of the replacement of the management team, we decided to establish an interim management team, with a clear-cut mandate of going into the entire structure of the investments and see what they are.
“Unfortunately, all those that took the decisions regarding all the investments are not in this hall. The interim management team is working based on information, agreements, data, bank records and so on to be able to look at each investment in its own”.
Owede Agbajileke, BusinessDay