Janet Samuel, Abuja
The Senate has resolved to investigate an alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) from 2008 till date
Senate’s resolutions to this effects were sequel to a motion sponsored by the Senator representing kogi Central Senatorial District, Natasha Akpoti-Uduaghan
Senator Natasha, while presenting the motion said, the investigation should uncover the circumstances that led to the re-concession of NIOMCO, as the initial concession agreement was validly terminated by the Yar’adua administration.
The Kogi lawmaker also sought an investigation into the payment of $496m allegedly made to the Chairman, Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 as settlement over ASCL contractual disputes.
According to her, Ajaokuta Steel and NIOMCO were set up by the Federal Government in the late 70s to establish Nigeria as a leading steel exporter but have been inoperative for decades due to a lack of political will and bureaucratic corruption.
She explained that since 1994, when the Tyazhpromexport (TPE) exited the Ajaokuta Steel on alleged ground that Nigeria did not discharge fully its financial obligation to the TPE, the Ajaokuta Steel was reportedly at 98% completion yet remains inoperative to date.
She revealed that sometime in 2001, Nigeria’s hope to have the Ajaokuta Steel Plant completed and put into operation was rekindled following the signing of the bilateral Agreement between Nigeria and the Russian Federation, saying that this noble idea was unfortunately diminished following the surreptitious concessions of NIOMCO and ASCL in June 2003 to unqualified Solgas Energy Limited, a company she described as lacking both financial and technical expertise as it was uncovered never to be in the business of iron ore and steel.
She further noted that the concession of ASCL and NIOMCO complexes took place contrary to the recommendation of the House Committee on Steel in 2004.
In their separate contributions, Senator Solomon Adeola of Ogun West said salaries and wages of staff of moribund companies are just being paid in billions of naira, stressing the need to reposition the Ajaokuta steel company and make it functional, as it will increase the steel market in Nigeria.
Senator Sani Musa of Niger East in his contribution, said the Ajaokuta steel company has been moved from one fraudulent contractor to another, insisting that the investigation would help unravel so many frauds in the two companies.
The Senate after several debate on the motion, consequently set up an Ad-hoc committee to investigate the allegation.
To this end, Senator Adeniyi Adegbonmire of Ondo Central, is to be the chairman of the investigative panel, while Senator Kawu Suleiman is to be the Vice Chairman, with Senators Natasha Akpoti of Kogi Central, Onawo Mohammed (Nasarawa South) Joel Onowakpa (Delta South), Onyesoh Allwell-Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Patrick Ndubueze (Imo North), Tokunbo Abiru (Lagos East) and Osita Ngwu (Enugu West) as members.
In a remark, the Deputy Senate President, Jibrin Barau who presided over the plenary, said the committee is to report back to the Senate in two weeks, adding that they are also to interface with relevant Ministries, Departments and Agencies and other critical stakeholders in the steel sector to obtain relevant informations and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2008 to date.
