The Vice Chairman of the Senate Committee on Niger Delta Affairs, Nurudeen Abatemi-Usman, representing Kogi Central Senatorial District on the platform of the Peoples Democratic Party, has said that the non-provision of fund for capital projects in Ajaokuta Steel Company in the 2012 budget will not be acceptable to the Senate.
Abatemi-Usman, who is equally a member of Senate Committee on Steel, stated this when the Minister of Mines and Steel, Mohammed Sada, appeared before the committee for the defence of his ministry’s budget.
A statement signed by Abatemi-Usman’s Special Assistant on Media, Michael Jegede, quoted the Senator as saying: “The over N4 billion allotted for personnel and overhead cost without anything for capital project is completely unacceptable because of the significance of the company to the country’s industrialisation.
“We can’t accept zero allocation for Ajaokuta Steel on capital budget.”
The senator, who was fully supported by other members of the committee, maintained that Ajaokuta Steel Company must come alive, pointing out that its operationalisation will give a true picture of the value of the company before privatisation can even be talked about.
He added: “As the senator representing the good people of Kogi Central where the Ajaokuta Steel Company Limited and NIOMCO are located, I owe it a duty to make sure that the two companies become fully operational for the betterment of my constituents and the country at large.
“I am calling on this committee to go on an oversight function to Ajaokuta steel to see what I saw during my tour to the company to assess the facilities therein.
“It is only then that you will appreciate what the minister has been talking about the Ajaokuta Steel.”
The Senate Committee on Steel, headed by Senator Phillip Aduda, refused to accept the explanation of Sada that the Ministry of Finance is conducting an economic and financial rate of returns on Ajaokuta Steel before fund can be injected into the company as directed by the Presidency.
Abatemi-Usman drew the attention of the minister to the some staff of Ajaokuta Steel who were sacked because they were fighting for their rights, wondering why they have not been reinstated as directed by the Senate.
Follow The Eagle Online Channel on WhatsApp
