Jets seizure: Avoid companies without credit ratings, firm tells govt

The Managing Director, DataPro Limited, Abimbola Adeseyoju, has advised the three tiers of government to mandate their agents not to invest in companies that lack credit rating reports.

Adeseyoju, who was reacting to issues surrounding the presidential jets seized in France, said though a statement by ex-Governor Ibukunle Amosun of Ogun State had provided clarity over the business deal that went awry, a credit rating report would have exposed the shenanigans of the Chinese company at the centre of the controversy.

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.

Displeased by the state action, the company approached the French court which initially grounded three presidential jets. Later, it released one at the request of President Bola Tinubu.

Since the judgement, both the state and federal governments have been exploring both diplomatic and legal means to overturn the judgement.

In Amosun’s statement over the weekend, the immediate past governor said his administration terminated the management rights of Zhongfu based on the request of the Chinese Government and advice from the Department of State Services, and the Nigeria Export Processing Zones Authority.

Amsoun further stated that shortly after his administration assumed office, two Chinese companies, Messrs China Africa Investment FXE and Zhongfu International Investment FXE laid claims to the management rights over Ogun Free Trade Zone.

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 ex-governor noted that it was later discovered that the information and claims volunteered by Zhongfu against China Africa Investment FXE were lies.

Amosun admitted that he was deceived into handing over the free trade facility in Ogun State to an investment group from China.

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 called on the government at all levels to mandate 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.

According to him, the sharp reduction in bank failure these days could be attributed to the culture of reliance on credit ratings by banks.

He added that even the Nigerian Upstream Petroleum Regulatory Commission would not commit funds for the host communities to any investment without credit rating reports.

“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 licensed Credit Rating Agency in Nigeria, recognised by the Securities and Exchange Commission with over a decade of experience in the industry. The firm is also licensed by the Nigeria Data Protection Commission to provide data protection compliance services.