The Nigerian legislature is under pressure to recover $496Milliin paid to an Indian firm that failed to revamp Itakpe Iron Ore Mill as agreed years after the payment was made by the Federal Government.
Transparency Group Network (TGN), a notable Non Governmental Organization (NGO) based in Port Harcourt, Rivers State, has petitioned the Senate to probe the failed project.
The National Coordinator of TGN, Uche Michael, who asked the Senate President, Godswill Akpabio, to initiate the probe, decried plans by the government to award more contracts for resuscitation of the moribund Ajekuta Still Mill.
Michael, who was speaking with journalists on Tuesday, implored the Federal Government torespect the wishes of majority of Nigerians who are against further transaction on the Ajaokuta Steel Rolling Mill which has become a conduit for fraud.
“Government’s ultimate aim is to transfer the Mill when completed to foreigners through the back-door contrary to the national interest of protecting the heritage of the nation and National Assets.” Michael alleged.
He expressed worries over the poor system of governance by the federal government through its relevant agencies including the Federal Ministry of Steel Development and the Ministry of Industry, Trade and Investment among others.
The TGN boss wandered why intellectuals like University Professors, Industrialists, members of national assembly, seasoned administrators, technical and financial consultants among others, still allow foreigners to fool Nigerians.
“It is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and non-achievable business plans.” He said.
The group commended the National Assembly Joint Committee on Steel Development for passing a resolution to probe the $496million paid by the Federal Government to the Indian firm.
According to the NGO, preference should be given to national companies who can run such plants to generate employment, reduce imports and stop the wastage of much needed forex and mineral resources.
In his words, “The Global Infrastructure Holding Ltd., GIHL took over the National Iron Ore Mining Company, NIOMCO, Itakpe, Kogi State in 2016 and got its agreement terminated in 2019 due to non performance.
“GIHL dragged the Federal Government to court for breach of contract and it was awarded damages to the tune of $496million which had been paid by Federal Government.
“We are outrightly against the way the federal government is deliberately and ignorantly selling out its national heritage without recourse to the yearnings and agitation of Nigerians…
“Especially at this crucial period when the nation is battling with economic stability among other challenges.
“Almost five decades of lost opportunity towards strengthening large scale Steel Production in Nigeria, failed attempts without proper road map.
“It is also on record that Russians and Ukrainians supplied already obsolete technology then in 1970s.
“We urge the FG and it’s concerned Ministries to carefully dig deep into their Detailed Project Report, Elaborated Business Plan, Capital Outlay and Cash Flow Projections by involving independent agencies and champions of business here in Nigeria.
“We are quite sure that the so-called 5B investment from Jindal is a faux pass and outrightly exaggerated number that will put Nigeria, her assets, resources and general public in total mess again.
“Another blunder was committed by handing over Ajaokuta, Itakpe mines with all the infrastructure and Delta Steel plants to GLOBAL INFRASTRUCTURE HOLDING LTD GHIL, India.
“They took over the plant and siphoned out all the resources from country and eventually country did not get any benefit.
“GIHL was never serious in running the plants and mines at Ajaokuta Steel Company Limited, Delta Steel Company and Itakpe. Later, GHIL sold its stakes in Delta Steel Company to Stallion Group under a SPV to Premium Steel & Mines Limited.
” This acquisition was also a marvel of financial engineering by PSML to hide black money generated and siphon out of the country through their other businesses.”
He however stressed that, “When stallion did not get support from the former President Muhammadu Buhari-led government, they had to shutdown the PSML Warri business around 2020.
“Sadly, for the third time, the Federal Government is trying to bring in Chinese and Indian companies to loot the resources from Ajaokuta, Delta steel plants and Itakpe mines.
“Interestingly, the immediate past government had paid the sum of $496million to GIHL as compensation even despite massive public outrage, wherein, these investors are merely looking at Itakpe mines to cater their offshore companies at much cheaper rate of iron ore supplies.”
TGN maintained that Jindal-India has been asked to work out takeover proposal through the back-door without public notice knowing well that several injunctions have been in different Courts of Law.
According to Michael, the federal government already intimated the company that “Ajaokuta and Delta Steel Company are obsolete technologies and any company claiming to run and earn profit from them is just misleading the nation and has nefarious intentions.”
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