Kwara denies breach of due process in N70b rice project

CONTRARY to claims of the opposition parties, Kwara State government has said due process was followed in its recentbusiness deals with a Spanish firm, Valsolar Consultoria. It said besides the fact that the pact met the laws of Nigeria and Spain, the foreign firm is legally registered in both countries. .The government, through the Senior Special Assistant to the Governor, Dr. Muideen Akorede, said thePeoples Democratic Party (PDP)-led government in the state being a responsible one,would not embark on any venture that would mortgage the future of the people.Some members of the opposition in the state had sharply criticised the rice project valued at N70 billion between the parties to the agreement. Leading the pack of the opposition to the project was the state's chapter of theAction Congress of Nigeria (ACN), which cited alleged non-compliance with procedures specified by the Corporate Affairs Commission (CAC).Akorede said:'The Kwara State government N70b rice joint venture with Valsolar Consultoria 2006 S.L. was the product of extensive negotiation, due diligence and Corporate Affairs Commission (CAC) approval'.He said the agreement started when the state government received a letter of intent from the Spanish investors in October 2011 seeking to partner with Kwara in setting up a rice cultivation, processing and packaging project in the state following a recommendation by the Spanish Embassy in Nigeria. .The governor's aide said: 'Considering that the company is undertaking similar ventures in other parts of Africa under Project Africa Rice and in line with the government's policy of encouraging foreign direct investment, officials were subsequently dispatched to Spain to open discussions with the company. .'The delegation was also directed to conduct vigorous checks on Valsolar's legal status, as well as assess its capacity to invest the needed funds in the project. These checks included original copies of Valsolar's certificate of incorporation, the articles and memorandum of association, which were sighted and duly notarised copies obtained'.
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