The Managing Director, DataPro Limited, Abimbola Adeseyoju, has advised the three tiers of government to require their agents to refrain from making investments in companies without credit rating reports.
Adeseyoju, who was responding to the controversy surrounding the presidential jets that were seized in France by stating that although the former governor of Ogun State Ibukunle Amosun’s statement clarified the details of the failed business deal, a credit rating report would have revealed the deceitful actions of the Chinese company at the center of the dispute.
This came on the heels of an ongoing battle between the Federal Government, Ogun State Government and a Chinese firm, Zhongfu International Investment FXE, over a controversial contract terminated by the state.
The state and federal governments have been exploring diplomatic and legal options to upturn the ruling ever since it was issued.
Amosun explained in a statement released over the weekend that his administration had terminated Zhongfu’s management rights at the request of the Chinese government, following the Department of State Services’ and the Nigeria Export Processing Zones Authority’s advise.
Amsoun noted that two Chinese businesses, Messrs. China Africa Investment FXE and Zhongfu International Investment FXE, made claims to the management rights of the Ogun Free Trade Zone not long after his administration took office.
He explained that the business dispute and rivalry between the two companies grounded seamless business activities and threatened public peace and safety within the zone and the neighbouring communities.
The former governor stated that Zhongfu’s information and accusations against China Africa Investment FXE were later shown to be false.
Amosun acknowledged that he had been tricked into giving a Chinese investment group control over the free trade zone in Ogun State.
Reacting to the issue, the DataPro boss said, “A credit rating report would have established the true position of the company currently causing Nigeria such a big international embarrassment. This is one of the duties of credit rating agencies.”
He urged the government at all levels to require their agencies to demand credit rating reports before committing funds to any investment.
Adeseyoju further appealed to the government to borrow a leaf from the pension custodians who were forbidden from investing pension funds in any entity that is not investment graded.
He suggested that the recent steep decline in bank failures could be linked to banks’ increasing dependence on credit ratings.
In addition, he said that without credit rating ratings, not even the Nigerian Upstream Petroleum Regulatory Commission would commit funds on behalf of the host communities to any investment.
“Government should ensure that no agency enters into any agreement with any entity without getting a rating report which will make available a quantitative and quality report on the entity. How could a state government have entered into an agreement which later turned out to be a scam? ” he wondered.
DataPro is a recognized Credit Rating Agency in Nigeria, licensed by the Securities and Exchange Commission.
The Nigeria Data Protection Commission has granted the company a license to offering services related to data protection compliance with more than ten years of experience in the field.
