April 17, 2024

The Osun State Investment Company has likened the deal on the lease of Osogbo Mega Station, Abeere to the controversial P&ID contract, stating that the State has been shortchanged on it.

Managing Director of OSICOL, Taofik Alimi in a statement obtained by InsightMedia on Wednesday said the lease agreement was recently reviewed in order to ensure payments due to the State are paid to the state.

Information filtered into the public earlier this week that the State government was planning to send packing the present operators of the NNPCL Mega Station to pave way for another person. The report that was debunked by the government.

Alimi said the operators if the company entered into 10years agreement with the Osun State Government in 2018 and that the deal was lopsided against the government.

The statement by OSICOL read in part, “The new management of the company, in line with best practices did a general review of the businesses and all contractual agreements considering the poor state of the business and to shore up the revenue base.

“This is how we discovered to our dismay that the leasing contractual agreements done was lopsided in favour of the Lesee and our company at a financial disadvantage. It’s like the notorious P&ID contract.

“Those that did the agreement from our side must have agreed to the poor terms for reasons best known to them but definitely not in the interest of either the company, state or the citizens.

“Very ridiculous money was paid for the ten years’ leasing, with NOTHING coming to the company either monthly or annually. And out of this paltry sum, OSICOL is still the one paying the annual insurance on the property.

“The mega station is also poorly operated as they hardly have petrol to sell to the people. Most times, sales are done through one pump with long queues of buyers.

After our letter, as expected, the local management of NNPC had a meeting with us and promised to have a second look at the agreement and come up with favorable terms that would ensure a win-win situation between the two organisations.

“So, the issue of selling is in the figment of the imagination of the social media servants of those that have been exploiting our organisation in the past five years.

“Those that benefited from the previous terms are the ones that are jittery and paying for this campaign of calumny.”

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