A notable Non Governmental Organisation, Transparency Group Network, has stepped up advocacy to persuade the Federal Government of Nigeria to constitute a debt recovery structure in the case of huge sums of money paid to an Indian firm to resuscitate a key national asset.
It said it has discovered that the Indian firm received a significant payment to revive the Itakpe Iron Ore Company.
However, the company is yet to become functional after the payment.
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The National Coordinator of TGN, an NGO, based in Port-Harcourt, the Rivers State capital, Comrade Uche Michael, while speaking with the media on Tuesday, called on the President of the Senate, Senator Godswill Akpabio, to order the probe of the sum of $496 million paid by the Federal Government to an Indian firm, which failed to revitalise the Itakpe Iron Ore Company after many years of work engagement.
Michael noted that the Federal Government should respect the opinion of over 250 million Nigerians by halting any further transaction on the revitalisation of Ajaokuta Steel Rolling Mill, which aim he said is to transfer the firm to foreigners through the back-door contrary to the national interest of protecting the heritage of the nation and national assets.
He expressed worries over the poor system of governance adopted by the Federal Government through its relevant agencies such as the Federal Ministry of Steel Development and Ministry of Industry, Trade and Investment.
The TGN further lamented that despite the presence highly intellectual personalities such as university professors, industrialists, members of the National Assembly, seasoned administrators, captains of Industries, technical and financial consultants among others, “it is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and non-achievable business plans”.
The group commended the National Assembly Joint Committee on Steel Development for passing a resolution to probe the $496 million paid by the Federal Government to the Indian.
It noted that preference should be given to national companies who can run such plants, ensure employment generation, reduce imports and do away with siphoning the much needed foreign exchange and mineral resources.
Michael said: “The Global Infrastructure Holding Limited took over the National Iron Ore Mining Company, 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 $496 million, which had been paid by the 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 a proper road map.
“It is also on record that Russians and Ukrainians supplied already obsolete technology then in the 1970s.
“We urge the Federal Government and its 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 pas and an 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 GHIL, India.
“They took over the plant and siphoned out all the resources from the country and eventually the 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 and 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.
“When stallion did not get support from the former President Muhammadu Buhari-led government, they had to shut down 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 $496 million to GIHL as compensation 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.”
The CSO maintained that Jindal India has been asked to work out a takeover proposal back door without public notice, knowing well that there are several injunctions in different courts.
It warned the Federal Government to understand 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 with nefarious intentions.
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