Reps want sale of Ajaokuta Steel halted

• Accuse Fayemi of engaging discredited firm
• You got it wrong, says Minister

By Christiana Ekpa, Umar Muhammad Puma & Musa Adamu

The House of Representatives yesterday moved to prevent of privatization and concessioning of the Ajaokuta Steel Complex, as it probe the Ministry of Steel for employing an auditing firm allegedly discredited globally for promoting corruption.
The House equally resolved to expand its ad-hoc committee probing the Steel Complex and to come up with the possibility of a Bill on it.
It also disclosed that special Committee would be further expanded to further inquire into why Mr. Kayode Fayemi engaged a globally discredited firm, PricewaterCoopers, in auditing Ajaokuta Steel Complex without due process.
Thirdly, to further expand the scope of the committee to inquire into the nature of the conflict of interest that may have risen on account of Mr. Fayemi appointing a firm, Greenwich Trust Ltd, allegedly headed by wife of his political mentor.
It equally urged President Muhammadu Buhari to stop the Minister from proceeding with the concessioning processes of the complex, pending a review ordered by the House.
This followed a motion sponsored by Ahmed Yerima and 24 Lawmakers on the ‘Urgent Need to Investigate the Circumstances under which the Federal Ministry of Mines and Steel Engaged the Globally Discredited PricewaterhouseCoopers (PwC) to Audit Ajaokuta Steel Complex for Purposes of Concessioning”.
However, there were few amendments to the prayers but not substantially.
Which are: Prayer 3 expanded for the Ad hoc Committee to ascertain whether Fayemi have a pecuniary interest in appointing a technical audit firm for the company.
Additional prayer: Declare the steel sector as a major sector of the Nigerian economy, and urge the Senate to concur with the resolution of the House.
Additional prayer: That the House commence the process of amending the Privatization Act, with a view to deleting the Ajaokuta Steel Company from the list of companies in the schedule to the Act, as well as removing the powers of the National Council on Privatization to amend or modify the law as provided in Section 38 of the Act.
Presenting the debate, Rep Yerima said, Dr Kayode Fayemi recently announced, and it was widely published, that Ajaokuta Steel Company will be concessioned after an ongoing audit.
“The audit of Ajaokuta Steel Company is being undertaken by PricewaterhouseCoopers – a globally discredited firm having been sanctioned in India, with a 2 year audit ban for infractions of over $1 billion USD; sanctioned in Brazil for which it paid $50million USD as fine; Fined in the United Kingdom for £5.1m, the largest ever sanction imposed by the UK Regulator; Paid $225 million USD and $25 million USD respectively as fines to TYCO shareholders in the U.S and Bank of Tokyo –Mitsubishi, where it was implicated for money laundering for Iran, Sudan, and Myanmar, blacklisted for roles in terrorism and human rights abuses; among other infractions and irregularities in their operations, which has left its reputation in tatters.
The Lawmaker further stressed that the “allegation that PricewaterhouseCoopers was informally engaged by Global Steel to assist and advise them on how to recover Ajaokuta Steel Company and National Iron Ore Company, (NIOMCO) Itakpe from the federal Government of Nigeria in 2012 at the onset of negotiations.
“The apparent actions of the Minister of Mines and Steel Development in engaging a company whose antecedents may suggest that they are being engaged to audit and prepare reports which may skew the outcome thereof in a preconceived manner in favour of parties which the Minister may have lined up or which may represent the interests of their former clients (GINL).
He said, “that the Bureau of Public Enterprises and the Infrastructure Concession Regulatory Commission both mandated by law under the Infrastructure Concession Regulatory Commission (Establishment, etc.) Act, 2005 and the Public Enterprises (Privatisation and Commercialisation) Act 2004, respectively has not been involved or engaged in the audit and concessioning process adopted by the Minister of Mines and Steel Development.
“Dr Kayode Fayemi, also appointed as Ajaokuta Transaction Adviser, Greenwich Trust Ltd, headed by the wife of his political mentor, without the input of BPE and ICRC, and turned around to discard other options suggested by the company other than concessioning.
“The presumptive posture of the Minister of Mines and Steel Development, Kayode Fayemi, to concession Ajaokuta Steel Company to an apparently pre-determined Company, because of his claim that reputable Companies have lined up as Concessionnaires, despite the failure of two previous concession attempts in 2003 to SOLGA.
“And the minister of Steel also claimed that government cannot spend a kobo more on Ajaokuta Steel Complex when he is already spending N2billion for the Concessioning process and in the context of a situation where Nigeria spends over $3.5bn USD on importation of steel related products annually;
“For almost two years since NIOMCO, Itakpe was again handed over to Global Steel in the so called modified concession agreement for a 7 year period with an option of a further 10 years, the plant which is integrated with Ajaokuta Steel Complex has remained moribund which signposts the likely failure of yet another Concession.
After his submission, the presiding officer, Yakubu Dogara threw the debate open to the floor.
In his contribution, Rep Ossai Nicholas Ossai, PDP Delta, said “this is a man that says that Ajaokuta cannot be brought to life. Two billion Naira has been spent on the company. This motion has to be investigated in line with the section 88 of the 1999 constitution.
Rep Sanni Abdul (Bauchi) “We know that the 5 countries of the world that have become world powers have their roots in steel industry. We cannot play with our common sovereign wealth.
Rep Bashir Babale (Kano) “This is a government that promised change and fight corruption. How much are we spending to import steel in this country? I wonder why he was so in a hurry for this concession. We need to be patriotic enough to make sure that what we do, we do it for the betterment of Nigerians. I urge my
colleagues to support this motion”
Rep Femi Gbajabiamila’s amendment: “The fact that concession is already in the amendment Act, what I am seeking to amend is that prayer that instead of the fresh request to amend the privatization and delete Ajaokuta Steel, or we can at the
investigative, and at the same time have a bill that would stop the concession of Ajaokuta company”
Rep Orker-jev observation to the amendment was that, “The investigation should
go on. The Adhoc committee should be constituted. There is a lot that’s going on there.”
Rep Abdulsamaad Dasuki: “There is a conflict of interest. This was the same
company he engaged as Governor, it is the same company he has engaged.”
Rep Shehu Aminu Shagari: “Since Adhoc committee has been constituted, let this motion pass. We can deal with the issue at the committee level.”
Rep Pwajok Edwards (Jos South): “Mr. Speaker, I beg to disagree with the leader of the House. Let us properly look into Section 16 and enrich ourselves after the investigation, before the Bill proposal can come.”
Rep Abubakar Chika (Niger): “We will not allow this to go free. I did not expect the minister of the federal republic to be cantankerous in approaching what belongs to the public. We will not agree.”
Rep Adamu Kamale (Adamawa APC): “It is purely the minister of solid minerals
that wants to betray Nigeria and the federal government. Global Infrastructure is not technically sound to manage Ajaokuta.
“If a company doesn’t have capacity, why would the minister be insisting? The Minister wrote a letter to the president insisting on concession. This House must take a decision; and a resolution must be passed by this Honourable House.”
Toby Okechukwu (Enugu): “This is not just ordinary coincidence. How can you exclude the structures of government? We are run by rule of law and not rule of men. Nigeria doesn’t create jobs for the boys. The history of privatization and concession in this country has shown me that nobody has the capacity to run Ajaokuta.
“Corruption is standing on its head in Ajaokuta. My head is telling that there is nothing right about Ajaokuta. The Minister should be investigated.”
In his ruling, the Speaker, Yakubu Dogara, put the amendments to a voice vote and it was unanimously carried.
Meanwhile, In responding to the decision of the House of Representatives to stop the concessioning of the Ajaokuta Steel Company, the Ministry of Mines and Steel Development has clarified that government had not concluded the process of concessioning the company yet. He said he had not even engaged anyone in the name of Transactional Adviser for the concessioning.
This clarification was made in a statement by the Minister of Mines and Steel Development, Dr Kayode Fayemi, and the Minister of State for Mines and Steel Development, Hon Abubakar Bawa Bwari.
The statement said while the Ministry believed the Lawmakers meant well; but they had grossly misunderstood the Ministers and other stakeholders working with the Ministry on this exercise.
The Statement said: “The Ministry has not contracted any transactional adviser for the concessioning of Ajaokuta Steel Company, as wrongly asserted by the House.
“The process for the appointment of a Transactional Adviser is on, but cannot be completed until it gets the approval of the Federal Executive Council (FEC).”
The Ministry also clarified that it had not spent anything out N2,096,500.00 appropriated by the House for the concessioning of Ajaokuta Steel Company in the 2017.
“The mediation process that led to the amicable settlement of the legal encumbrances on Ajaokuta Steel Complex has not ended. There are still a few more steps to be taken as outlined in the terms of (out of court) settlement. And the Ministry is following up on this.
“It is also important to state that no one has been hired. We find it rather worrisome that the House of Representatives could devote an entire day to an issue that has not even arisen.”
It further clarified that the Ministry remained committed to making Ajaokuta Steel Plant function effectively and that it was convinced that steel remains the most important engineering material and backbone of industrialization in any economy.