By Abiola Olawale
The Senate has ordered an extensive investigation into the 16 years affairs of Ajaokuta Steel Company Limited and the National Ore Mining Company (NIOMCO) in Kogi State.
The directive came after Senator Natasha Akpoti-Udaghan, who is representing Kogi Central Senatorial District, had moved a motion to investigate the affairs of the steel companies between 2008 to date.
The lawmaker during her speech said that proper investigation of the matter will 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 ASL contractual disputes.
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. 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 ore and steel.
In her words, “After reviewing the Inuwa Magaji Administrative Panel of Inquiry Report on the late President Umaru Yar’adua, the Federal Executive Council unanimously terminated the Concession Agreement on April 2, 2008. The termination was due to the operations of ASCL, NIOMCO, and Delta steel mills, as well as breach of agreement and unwholesome practices. Additionally, the Concession Agreement was found to be unpatriotic and skewed in favour of GINL.
“The House of Representatives had conducted an investigation into the Iron and Steel Sector in 2018 with far-reaching resolutions aimed at resuscitating the ASCL and ANIOMCO steel mills. However, the Federal Government either ignored these resolutions or has not implemented them yet. Many steel-producing countries are disturbed by the $253 million organized economic crimes in India. Additionally, GSHL’s Pramod Mittal is notorious for engaging in questionable business activities such as embezzlement and asset-stripping in countries like Bulgaria, the Philippines, Libya, Bosnia, Zimbabwe, Montenegro, Serbia, and many more.
“In Bosnia, Pramod Mittal, who is associated with GSHL, was arrested and charged with organized crime. Additionally, GSHL’s management staff were jailed for economic crimes. However, it seems that Nigeria has fallen victim to Pramod’s sharp contract fraud yet again, in relation to the payout of $496m in 2022. This is not the first time, as Nigeria previously conceded NIOMCO to the same GINL in August 2016. Unfortunately, these fraudulent activities are facilitated by unpatriotic Nigerians who hold trusted government positions.”
The Senate, subsequently constituted an investigative panel chaired by Senator Adeniyi Ayodele Adegbonmire, while Kawu Suleiman was made the deputy Chairman.
The other eight members of the committee are: Sen Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South) Sen Joel Onowakpa (Delta), Sen Onyesoh Allwell Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Sen Patrick Chukwuba Ndubueze (Imo North), Senator Tokunbo Abiru (Lagos East) and Osita B. Izunaso (Imo West).
