The Senate, on Tuesday, tackled the Ministry of Steel Development for making a sketchy presentation at a one-day investigative hearing on alleged incidences of corruption and inefficiency in Ajaokuta Steel Company Limited (ASCOL) and National Iron Ore Mining Company (NAICOM) and the general state of affairs in the Federal Government owned companies from 2002 to date.
The investigative hearing was organised by the Senate Ad-hoc Committee, Chaired by Senator Adeniyi Ayodele, who represents Ondo Central Senatorial District on the platform of the All Progressives Congress (APC).
The Senate noted with dismay that, with the presentation the Ministry wanted to make before the Committee, it had become clear why the companies under its supervision had not lived up to expectations in the last several decades.
The eyes of the lawmakers were opened to the decay in the system when the Minister of Steel Development, represented by the Permanent Secretary, Dr. Chris Osaruwanmwen’s presentation to the Committee was described as “watery”.
Chairman of the Ad-hoc committee, Senator Adeniyi Ayodele, wondered how Ajaokuta would ever work when the Ministry of Steel, which directly supervises Ajaokuta presented only “a 2-page watery memorandum” to the Senate Committee, saddled with the enormous job.
“How can Ajaokuta work? You have not presented something that will make Ajaokuta work. Tell us the problem and the steps you have taken to make Ajaokuta work. What you presented shows the Ministry is not on top of the situation,” he said.
The lawmakers also said that the privatisation and concession of the company were not in the best interest of the country, as the concession agreement between the Federal Government and Global Infrastructure Nigeria Limited (GINL) provided for GINL to import capital into the company but didn’t bring a dime.
To make matters worse, Nigeria paid a whooping sum of $496 million to Global Infrastructure Nigeria Limited, the company Ajaokuta was concessioned to as of court settlement, a development that seriously infuriated the Senate investigative Panel when it was clear that GINL did not bring in a dime as an investment.
The Central Bank of Nigeria (CBN) represented by Hamisu Abdullahi, Director of Banking Services, presented evidence of payment of $496 million to GINL with a mandate from the office of the Accountant General of the Federation.
He said the source of the money was the FGN independent revenue account from where $250 million in settlement agreement was paid in September 2022 and the balance was paid from the FGN Bonus Account in instalments of $49.32 million. Mr Abdullahi confirmed that there was no capital importation by GINL.
The Sole Administrator of Ajaokuta Steel Company Limited, Engr. Sumaila Abdul Akaba, who described ASCOL as a strategic company, said that the state of the plant was still intact.
Engr. Akaba told the committee that the line plant, which has been completed and will be ready in 6 months can meet the lime needs of the 36 states.
The Sole Administrator however, debunked the belief in many quarters that ASCOL was obsolete, saying that all the steel companies in India and China were built by this Russian technology like Ajaokuta.
Engr. Akaba also justified the retention of staff of the steel company and the N4.2 billion in the 2024 budget for salaries, saying that those staff who were maintaining the plant were the only reason they still have Ajaokuta today, adding that “if you buy a brand new car and park it outside for a year without care, you won’t be able to drive it when you need it.”