The House of Representatives Committee on Public Assets is examining the sale of Delta Steel Company, Aladja, Delta State, reportedly valued at over $700 million but sold for $30 million.
The Director General of the Bureau for Public Enterprises, Ayodeji told the committee that the Federal Government’s privatisation policy led to the sale of 80 percent of the company to Global Infrastructure Nigeria Ltd in 2005, with the government retaining 20 percent.
Gbeleyi noted that after the transaction, the company’s assets were reportedly used as collateral for a loan from Ecobank.
However, due to non-performance, the Asset Management Corporation of Nigeria later acquired the assets in 2015 and sold them to Premium Steel and Mines Ltd.
Concerns were raised over the role of AMCON in the sale, with Gbeleyi stating that the agency did not consult BPE before selling the company’s assets.
He also pointed out discrepancies in the list of creditors, stating that while BPE was aware of Ecobank’s involvement, three other banks listed by AMCON were unknown to the agency.
The controversy deepened when representatives of the Accountant General of the Federation’s office stated that only N3 billion was received for the sale of 80 percent of Delta Steel Company’s assets to Global Infrastructure Nigeria Ltd.
Meanwhile, AMCON, which claimed to have sold the assets to Premium Steel and Mines for N32 billion, failed to provide proof of payment into the Federation Account.
Petitioners, including members of the Association of Concerned Residents of Camp 2, 4, and 5 of Delta Steel Company, accused AMCON and Premium Steel and Mines of intimidation. They alleged that security operatives had been harassing them, demanding they vacate their estates and plots of land that were originally allocated to them as part of their settlement agreement.
Dr. David Emomotimi and Richardson Osifor, on behalf of residents, disclosed that the properties being contested were not part of the assets used as collateral for the Ecobank loan. They also questioned how a loan originally valued at N250 million was later inflated to N7 billion.
In response to the growing controversy, the House of Representatives Committee directed AMCON and Premium Steel and Mines to stop harassing residents until investigations are concluded.
Committee Chairman, Ademorin Kuye, stated that the panel has the mandate to oversee the use, management, and disposal of all Federal Government assets and is committed to ensuring transparency in the Delta Steel Company transaction.
Managing Director of the Ministry of Finance Incorporated, Armstrong Takang expressed concern over the poor handling of the company’s assets, questioning why leaders who are more educated than their predecessors struggle to maintain national infrastructure.
The investigation is expected to continue, with further scrutiny on the transactions surrounding the steel company’s sale.
Crediblenewsng.com
