By Emman Ovuakporie & Johnbosco Agbakwuru

ABUJA — THE House of Representatives Committee on Privatization and Commercialization, Sub-Committee on Steel, has called on the relevant stakeholders to form a review committee on the contentious modified agreement of the Federal Government with Global Infrastructure Nigeria Limited, GINL on the Nigerian Iron Ore Mining Company, NIOMCO, and Ajaokuta Steel Company Limited.

The committee in a resolution in Abuja, weekend, also told the Federal Government not to let the N10 billion taxpayers’ money spent so far on rehabilitating the Ajaokuta Steel Company Limited, ASCL, be a wasted effort and resources.

The relevant stakeholders expected to embark on the review of modified agreement, according to the Chairman of the Sub-Committee on Steel, Babatunde Kolawole, include the Ministry of Solid Minerals Development, the Bureau of Public Enterprises, the Nigerian Society of Engineers, the labour unions and the host communities.

Kolawole, who is a member of the All Progressives Congress, APC, from Ondo State, in a chat with journalists, assured that the House Committees on Privatization and Commercialization and Steel would monitor the recommendations of the review committee of stakeholders through effective oversight.

He said urgent steps were needed to ensure that ASCL sprang back to life in the wake of the modified agreement between the Federal Government and Global Steel infrastructure.

He said:  “The Minister for State on Solid Mineral Development was at the last investigative hearing by this sub- committee and he said one of the reasons for accepting the arbitration was that it would save Nigeria from paying Global Infrastructure $525 million. I disagree with him, though the 7-year modified agreement has already been signed, there is need to urgently review it.

“ However, NIOMCO which has been concessioned to GINL is strategic to the operations of Ajaokuta which now wholly belongs to the federal government.

“I want you to note that the federal government   validated the concession of NIOMCO to GINL on the condition that there will be guaranteed supply of raw materials to ASCL without which it cannot operate.

“For this to happen, there is need to complete the external infrastructure especially the   rail line from Ajaokuta to Warri port which is uncompleted.

“There is also the need to deepen the ports to allow for the bulk movement of the raw materials that will be moving in and out of Ajaokuta Steel, NIOMCO and Delta Steel Company.

“The estimate for the rail alone is about N2 billion. This said amount is not in the 2016 budget and I do not believe there are plans to include it in the 2017 budget. So, if you have given NIOMCO to GINL without the infrastructure to supply Ajaokuta, its like giving them an opportunity to cart away our iron ore for the next seven years.”

He further stated that aside the infrastructure, there were issues of host communities’ rejection of the return of GINL to Itakpe in Kogi State as well as outstanding obligations of the Federal Government to pay workers severance benefits estimated at N8.7 billion.

He said:   “There is also another 500 million Euro which is meant to complete the NIOMCO plant, including the super concentrate. Sometimes, you look at the agreement and just wonder.”

“The House has resolved that Ministry of Solid Minerals Development, the Bureau of Public Enterprises, the stakeholders, including The Nigerian Society of Engineers, the labour unions and the host communities, should form a review committee on the agreement.

“Also, the House Committees on Privatization and Commercialization and Steel should monitor the recommendations of the review committee of stakeholders through effective oversight.”

Recall that the stakeholders had viewed the 7-years modified agreement of the federal government with GINL with disdain and skepticism.

The former minister of Solid Minerals Development had raised issues justifying his refusal to sign the agreement which had now been signed by the current administration.

GINL had been accused of misdeeds in the past, including taking numerous loans from Nigerian banks which were not utilized for the purposes intended., tax evasion, non-remittance of deducted pensions of staff, a claim of conversion for about N37 billion, being the verifiable assets of ASCL wrongfully transferred, cannibalised and vandalized by GINL.

Others include conversion of premium scraps valued at N203 million imported for ASCL by GINL and billets in ASCL warehouse valued at US$ 79, 372.50 without payment, and a claim of conversion for about N6. 4 billion, being the verifiable assets of NIOMCO wrongfully transferred, cannibalised and vandalized by GINL.

A committee constituted in August, 2011 by the then Vice President / Chairman   National Council on Privatisation recommended the prosecution of Messrs GINL on the offences.