Date Published: 03/31/10

Ondo sacks Agagu's Oil Palm Consultants over N1billion debt, promises to reposition coys

For running the once booming Araromi-Ayesan and Okitipupa Oil Palm Companies into debt of close to One Billion Naira, the Ondo State Government on Thursday terminated the contract of the consultant employed by the Olusegun Agagu administration, Messers Modell Consultant.

        The State commissioner for Commerce and Industry, Mr. Akin Akingbesote who disclosed this during an interview Correspondents in Akure, assured that efforts were on by the present administration in the State to turn around the fortunes of the company and make it viable as envisioned by its founding fathers.

        He said that Modell Consultant, which was hired by the last administration to transform the company, has not done anything meaningful to justify its retention, rather it has embarked on recklessness in its handling of the companies thereby leading the Okitipupa Oil Palm PLC to incur a huge debt which is now threatening to make the company to go under.

        According to him “Modell Consultants and Mogaji were hired by the last administration to turn around the fortunes of the companies unfortunately they plunged Okitipupa Oil Palm into crisis. They took a lot of funds while they pretended that the company was doing well the company but in reality the company is indebted to the tune of almost a Billion naira and is under receivership now, so he was terminated by the receiver”.

The Commissioner also revealed that the contract agreement between the State Government, the Consultants and the host community had expired on February 29 this year, added that government could not wait for another debt to be incurred as there were speculations that another N55 million loan was to be assessed on behalf of the company.

“Now, the contract agreement has expired since February 29.  He claimed to have received another letter.  We asked him to present a copy and he cannot present it.  He is running the place fraudulently.  We discovered that he has written to a first generation Bank to assess a N55milion loan which we know he would definitely the ask Ondo State Government to come and pay just as he did on Okitipupa Oil Palm,” the Commissioner stated.