Senate queries BPE’s decision over concessioning of Ajaokuta steel complex

Taiwo Adisa,Abuja - 18.01.2008

The Senate on Thursday queried the decision of the Bureau of Public Enterprises (BPE) to concession Ajaokuta Steel Complex worth over $100 million to Global Steel Infrastructure Limited for only $5 million.

The revelation, which came into the open at the continuation of the public hearing by the Senate Committee on Public Accounts, indicated that the company, which value was put at over $100 million, was given out to Global Steel Infrastructure Limited for only $5 million.

Global Steel won the bid for the steel company and presently operates Ajaokuta Steel Complex and Delta Steel.

The company, which is also being investigated for its real ownership, won the concession bid to manage the rail linking Ajaokuta, Itakpe, both in Kogi State and Delta Steel, whose market rate was valued at more than $100 million.

Chairman of the Senate Committee on Land Transport, Senator Garba Lado, said the Senate received series of complaints regarding the concession of Delta and Ajaokuta, including a complaint from the Nigeria Railway Corporation (NRC) regarding non-payment of fees.