Willbros: How Delta Bailed Out Ascot
By Olawale Olaleye, 04.18.2010

More facts emerged yesterday on how the Delta State government under former governor James Ibori, bailed out Ascot Offshore Nigeria Limited, an oil servicing conglomerate operating in West Africa in the purchase of Willbros group, an American-based company in 2006.
Coming against insinuations that Delta State may have diverted state funds to acquire Ascot for the purchase of Willbros, Ochuko Pedro, the company’s secretary, last night, gave a graphical details of all that transpired and ultimately culminated in the Willbros deal.


In a statement, Pedro said the Delta State government had realised the economic value of Willbros to the state, more so that it had been offered for sale and therefore chose to assist Ascot to obtain loan for the acquisition.
Pedro said the state government was interested in the deal but that the then governor, Ibori, was not disposed to debt of such magnitude for the incoming administration and therefore partnered Ascot in the acquisition deal.


“It offered securities to Ascot as collateral for a loan from Intercontinental Bank Plc. There were other third party collaterals as well. A combination of these third party assets and securities with those of Delta State government formed the security basket that became collateral for the loan offer from Intercontinental Bank. Delta State used a portion of its shares in Oceanic bank Int’l Plc for this transaction.
“The portion of Oceanic Bank shares released for the transaction was used as a bridging security for a period of 360 days during which it was expected that Ascot would have paid down the loan and the shares returned to the State Government. In consideration for this assistance, the State Government asked for economic compensation.

It asked for an equity stake option in the Company as a preferred investor at a discounted price of 80 cents to each $1 share. In other words, for every dollar share, the State Government would pay only 80 cents,” Pedro stated in the statement.
While establishing that Delta’s stakes in Ascot are duly documented, Pedro said: “Delta State did not invest directly in Ascot. It only provided securities for the loan facility for the leveraged buyout. Indeed, the Central Bank of Nigeria (CBN) approved the loan of $160m to Ascot by Intercontinental Bank. These facts were thoroughly investigated by the EFCC under Nuhu Ribadu. The allegation that State funds were used to buy Ascot was totally proved false. The EFCC under Mrs. Waziri again carried out its own investigation and issued a clearance letter to Ascot. The said clearance letter is reproduced along with this publication.


“The investigation was again reopened between August and October 2009, when the EFCC, at the instigation of the Central Bank of Nigeria, moved against bank debtors. This round of investigations under the current leadership of the EFCC also showed there was no criminal infraction in the transaction. This was at a time Intercontinental Bank had itself legally proceeded against the Company in the Federal High Court, Lagos in an action that ended in the signing of Terms of Settlement by both parties for the payment of the debt on installment, which terms were pronounced upon as Judgment of the Court on 26th March, 2009.

Notwithstanding the consent judgment, the EFCC has nonetheless sought to override the judgment of the Federal High Court and impose its own regime of conditions on Ascot.
“The portion of Oceanic Bank shares used to part-secure the loan was never sold to pay off the loan obtained by Ascot. The Delta State Government, Intercontinental Bank Plc and Ascot have confirmed that the shares are still in place. This fact can easily be verified through the CSCS (Central Securities Clearing System).”


http://www.thisdayonline.com/nview.php?id=171233

So when an asset is strategic, a state will help an individual to buy it?
And who is the individual?
With the calibre of Delta indigenes in Investment banking
So this is what they can come up with

They should go and explain this to EFCC and Justice Oyewole