Reps order fresh probe into sale of Ajaokuta

Idowu Samuel, Abuja - 28.01.2008

THE House of Representatives has resolved to open another round of investigations into the sale of Ajaokuta Steel Complex on the basis that the complex was sold to an Indian company at a give away price of $550 million us dollars.

The House put the value of the steel complex at $5 billion going by the report on the technical audit carried by Russian firm, TPE, between 1998/ 99.

However, the investigation into the sale of the company which would entail a public hearing is to be anchored by the Joint Committees on Privatisation and Commercialisation as well as the Committee on Power and Steel.

The resolve by the House to revisit the sale of the company stemmed from a motion moved by the House Committee Chairman on Information and National Orientation, Honourable Dina Melaye, supported by Honourable Samuel Bamidele Aro and 62 other lawmakers.

The motion alleged that an Indian company, Global Infrastructure, which took over the management of the company for a 10-year agreement has been vandalising equipment at the steel complex contrary to the management agreement it signed with the Nigerian government.

Leading the debate on the motion, Honourable Dino expressed dismay at the nature of agreement between the Nigerian government and the Indian company in which case he said the plant was hurriedly offered for sale at $550 million just two years into the agreement.

He also expressed displeasure at the circumstances in which the Sapele Power Plant, a sea port in Warri, the central railway line to Itakpe and Itakpe Iron Ore and Delta Steel Mill, Aladja, were sold to an Indian, Mr. Pramod MIttal.

He said steel experts from Austria and Russia had conducted an audit on Ajaokuta Steel Company. This he said took three months to complete whereas, the Bureau of Public Enterprises (BPE) conducted similar exercise on the plant just within 3 days.

The Public Hearing on Ajaokuta as directed by the House, is however to ascertain the compliance or otherwise of Global Infrastructure and the BPE with laid down procedures and make recommendations.