Nigeria queries NGN 1 billion technical audit at Ajaokuta Steel
Saturday, 31 Oct 2009
Nigerian Thisdayonline.com reported that Nigerian House of Representatives has raised questions over the fate of the NGN 1 billion earmarked in the 2009 Appropriation Act for the conduct of a technical audit at the Ajaokuta Steel Company Limited.
It also condemned in strong terms the alleged massive looting of equipment and property at the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, Itakpe, both located in Kogi State.
The lawmakers were apprehensive that the non utilization of the funds meant for the technical audit two months to the end of the current fiscal year may have given room for some unnamed persons to perpetrate the act of asset stripping and outright theft of properties belonging to the two firms. They, therefore, resolved that an investigation be conducted on the issue to compel the interim management of the company to explain its failure to secure the assets of the company given the huge investments made by the Federal Government on both firms over the years.
The resolution came on the heels of a motion moved on the floor of the House by the Chairman, House Committee on Steel Development, Mr Aminu Shehu Shagari. In the motion, Mr Shagari lamented that whereas steel production has been the bedrock of industrialization and economic development of many advanced countries, Nigeria appears to be toying with her investments in the steel sector.
According to him, while the Federal Government has expended over USD 4.6 billion on Ajaokuta Steel Company and have brought the construction of the gigantic steel project to 98% completion, these investments were being massively looted by some persons. Although, neither the identities of the looters nor the inventory of the looted items were disclosed during the debate on the motion, he warned that more looting was bound to take place unless adequate measures were put in place to protect the investments in the two firms.
He prayed the House to urge the Inspector General of Police to urgently beef up security in and around the industrial areas of the Ajaokuta Steel Company and the National Iron Ore Mining Company to checkmate the looter. He also urged the Federal Government to abide by an earlier resolution of the House to complete the remaining 2% of the Ajaokuta Steel Project and ensure that the company commences production without any further delay.
The bill however attracted some measure of opposition due to the seeming absence of details on the alleged looting as well the daily security arrangement at the said firms. There were at least three lawmakers who argued vehemently to have the bill thrown away just as there were as many as 15 proposals for amendments to the prayers of the motion. It was however passed without much alterations as a total of 14 proposals for amendments were rejected.
