The Akwa Ibom Government says it has spent N526 million to
rehabilitate the moribund peacock paint factory in Etinan local
government area as part of efforts to resuscitate ailing industries and
create employment opportunities for youths in the state.
The paint factory known for its quality products went under
receivership management due to a debt of N102 million and was later shut
down after it was gutted by fire about five years ago.
Governor Udom Emmanuel while inaugurating the factory said the state government had paid N102 million to First Bank Plc being the outstanding debt and also committed N424 million to the rehabilitation of the factory including the installation of production lines.
He expressed sadness that a loan of N30 million the company obtained in 1996 had resulted in a debt of N102 million which the state government has paid the bank as full and final settlement.
“Our purpose of re-commissioning this place today is a demonstration of our determination in managing the scarce resources of the state prudently and having rescued this company now, it is wholly owned 100 percent by the Akwa Ibom Government,’’ the governor said.
He explained that in line with the reforms in the industrial sector, the intention of the state government is to recoup its investment in the reaction of the company with a view to privatising the factory.
“Once we put this place back, we will look for a way to privatise it by doing private placement. The function of government is not to run industries but to provide enabling environment for the industries to run,’’ he said.
The governor advised the management of the company to ensure efficiency in its operations to ensure the sustenance of the company stressing that the management should go out to regain the market it has lost over the years.
He disclosed that the state government is holding “useful discussions with electricity distribution companies to ensure that power supply to the state is improved.’’
He also advised youths to desist from destructive activities and demonstrate their support to the efforts of the state government in rehabilitating ailing factories by protecting industrial facilities in their communities.
ANIEFIOK UDONQUAK
Governor Udom Emmanuel while inaugurating the factory said the state government had paid N102 million to First Bank Plc being the outstanding debt and also committed N424 million to the rehabilitation of the factory including the installation of production lines.
He expressed sadness that a loan of N30 million the company obtained in 1996 had resulted in a debt of N102 million which the state government has paid the bank as full and final settlement.
“Our purpose of re-commissioning this place today is a demonstration of our determination in managing the scarce resources of the state prudently and having rescued this company now, it is wholly owned 100 percent by the Akwa Ibom Government,’’ the governor said.
He explained that in line with the reforms in the industrial sector, the intention of the state government is to recoup its investment in the reaction of the company with a view to privatising the factory.
“Once we put this place back, we will look for a way to privatise it by doing private placement. The function of government is not to run industries but to provide enabling environment for the industries to run,’’ he said.
The governor advised the management of the company to ensure efficiency in its operations to ensure the sustenance of the company stressing that the management should go out to regain the market it has lost over the years.
He disclosed that the state government is holding “useful discussions with electricity distribution companies to ensure that power supply to the state is improved.’’
He also advised youths to desist from destructive activities and demonstrate their support to the efforts of the state government in rehabilitating ailing factories by protecting industrial facilities in their communities.
ANIEFIOK UDONQUAK
No comments:
Post a Comment