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Tag: Delta Steel

  • BPE DG: $700m Delta Steel Company sold for just $30m

    BPE DG: $700m Delta Steel Company sold for just $30m

    The Director General of the Bureau for Public Enterprises (BPE), Ayodeji Ariyo Gbeleyi, has revealed that Delta Steel Company, valued at over $700 million, was sold for just $30 million.

    Speaking before the House of Representatives Committee on Public Assets on Friday, Gbeleyi stated that under the Federal Government’s privatization policy, 80% of Delta Steel Company in Aladja, Delta State, was sold to Global Infrastructure Nigeria Ltd (GINL) in 2005, while the government retained a 20% stake.

    He explained that residential buildings and land owned by the company were used to settle workers and pensioners. After privatization, GINL reportedly used Delta Steel Company’s assets as collateral for a loan from Ecobank. 

    He added that due to non-performance, the Asset Management Corporation of Nigeria (AMCON) acquired the assets in 2015 and sold them to Premium Steel and Mines Ltd.

    Gbeleyi accused AMCON of failing to seek clarification from BPE before selling the assets and added that while BPE was aware of the loan from Ecobank, it had no knowledge of three other banks listed by AMCON as creditors.

    The petitioners, including Association of Concerned Residents of Camp 2, 4 and 5 of Delta Steel Company, Aladja, Warri, before the involvement of AMCON and Premium Steel and Mines in DSC assets, they had been staying in the estate and plots of land which were used to settle them base on the contractual agreement.

    The petitioners claimed that they have been under constant intimidation and harassment by police and army personnel since 2015, claiming to be acting on the instructions from AMCON and Premium Steel and Mines that they should vacate the estates.

    Read Also: N’Assembly decries Steel Devt. Ministry’s phoney projects

    Speaking on behalf of the petitioners, Dr. David Emomotimi  and Richardson Osifor, said the assets AMCON acquired were assets used as collateral by Global Infrastructure Nigeria Ltd to obtain loan from Ecobank which did not in any way include the residential buildings.

    Osifor said from the contract agreement and information at the Corporate Affairs Commission, the loan Global Infrastructure Nigeria Ltd obtained from Ecobank was N250 million but AMCOM jacked it up to N7 billon.

    In their submission, the representatives of AMCON, Chukwuemeka Umunakwu (AMCON legal unit) said AMCON acquired the assets of  DSC used as collateral to obtain loan from four banks to prevent them from collapse.

    He said AMCON acquired the assets at N22 billion but sold it to Premium Steel and Mines at N32 billion.

    Replaponding to enquiry by the committee whether the office of the Accountant General of the Federation has the receipt of payments by both BPE and AMCON in respect of sales of  Delta Steel Company’s assets, the representative of AGF, Kabiru Ademola (Director, Finance) acknowledged receipt of N3 billion in favour of BPE in respect of sales of 80% of DSC assets to Global Infrastructure Nigeria Ltd. 

    He said the AGF is yet to get any response from Central Bank, regarding claim of  payment of N32 billion by AMCON in respect of DSC assets to Premium Steel and Mines Ltd. 

    According to him, though AMCON claimed the money was paid to FG account, (TSA), the agency was unable to provide the proof of payment to the committee.

    In his submission, Managing Director/CEO of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang said though MOFI is responsible for overseeing the management of assets and investments in the country, the agency withdrawn from the issue  of Delta Steel Company due to so many controversies.

    Takang expressed concern over the collapse and death of Delta Steel Company and similar entities in the country. . 

    He said: “If  our forefathers who were less exposed and less educated would build such infrastructure and maintaining it by  our contemporary leaders whore are more exposed and educated than them will be a problem, I wonder what will be the future of the country.”

    Chairman of the Committee, Ademorin Kuye (APC, Lagos) said the committee whose mandate includes oversight over the use, management and disposal all federal government assets within and outside the country decided to probe the purported sales of the Delta Steel Company and the controversies surrounding its acquisition by AMCON.

    The committee directed AMCON and Premium Steel and Mines to desist from harassing the residents of the estate in Delta Steel Company untill the investigation is completed.

  • PTAD advises FHA, Delta Steel pensioners on verification

    PTAD advises FHA, Delta Steel pensioners on verification

    The Pension Transitional Arrangement Directorate (PTAD) has urged the Federal Housing Authority (FHA) and Delta Steel Company (DSC) pensioners to partake in the ongoing verification  in Lagos, Abuja and Delta State.

    The exercise is billed to end at the Lagos Centre today. The Delta Centre ends on Tuesday.

    The event, which started on Monday, is to enable it review the captured data to identify genuine pensioners, compute into the system and ascertain pension entitlements for payments.

    Its Executive Secretary, Mrs. Sharon Ikeazor represented by the Assistant Director, Pension Admin, PTAD, Jibrin Idris made this known during the verification exercise in Lagos yesterday.

    He however said the turnout in Lagos for the exercise was not impressive, but he is optimistic that more people would show up before the end of the exercise.

    He said the essence of the verification is to identify genuine retirees of the two agencies, which are FHA and DSC, stressing that in the last verification, pensioners of NICON Insurance; New Nigeria Newspapers and Nigeria Reinsurance were verified.

  • Buhari petitioned over ‘neglect’ of old Delta Steel

    Aladja Steel Complex host communities in Udu Local Government Area of Delta State yesterday petitioned President Muhammadu Buhari over what they called total neglect of the old Delta Steel Company by the Federal Government.

    In a letter by their leaders – Ovwian community’s President General Paul Odiete; Orhuwhorun community’s President General Pius Tuphe and Aladja community’s President General Ellias Dogene – the host communities expressed bitterness over the proposed concession of NIOMCO at Itakpe to Global Holdings (GSHL), the former operators of the old Aladja Steel Company.

    Global Holdings was accused of destroying the plant, with adverse effects on the host communities and the nation.

    The letter reads: “It is to be noted that in 2005, concession was given to GSHL and consequently terminated in 2008 due to non-compliance and non-obligation towards payment to the Federal Government. Also, between 2005-2008, GSHL could hardly produce approximately 2 to 3 million tonnes from Itakpe mines.”

  • Delta Steel has capacity to employ 20,000 youths, says APC candidate

    Delta Steel has capacity to employ 20,000 youths, says APC candidate

    The candidate of the All Progressives Congress (APC) for Delta Central Senatorial District in the forth coming general election, Hon. Halims Agoda, has vowed to probe the sale of Delta Steel Company in Ovwian-Aladja, Delta State– if elected.

    Agoda, a former member representing Ethiope Constituency in the House of Representatives,  lamented the fate of the now comatose pioneer integrated steel plant.

    Addressing his supporters in Effurun,  Uvwie Local Government Area, he noted that the steel company was capable of employing thousands of teeming youths in the state, particularly in the central district where it is located.

    He said, “DSC, if well run and adequately financed, has the capacity to employ over 20,000 staff and this ought to be a blessing to Urhobo nation and not this present state were the multibillion dollar plant is allowed to rot away because some persons have personal interest to take over.

    “All those who contributed in one way or the other to bring DSC to this sorry state will have stories to tell Nigerians when I get to the Senate chambers,” he vowed.

    He also promised to facilitate mass employment in a bid to ensure crime reduction and taming of youth restiveness in the state and beyond.

    He said, “I am highly experience and intellectualized in the business of law making, having done it in both the State House of Assembly and the House of Representatives between 1999 to 2011. Since I am a senior Legislator, I will seat on the front row of the red chambers of the National Assembly, from where I shall be at advantage to move my motions. As a senior legislator, I must also be appointed as Chairman of various committees where I can relate with government agencies, parastatals, organisations and companies where I can facilitate employment for our teaming youths.

    “That is an opportunity my two opponents do not have because none of them has been to any law making House in this country. If you elect them, they will sit at the back row where they will be overwhelmed and can hardly be heard, because that is part of the rules of the House, new comers are usually relegated to the back without the privilege of bein appointed as committee chairmen. I urged you to vote for me since I am the best, and I can assure you that my first motion will request for the probe of the sale of DSC, which you and I know was corruptly done. Today DSC is moribund.”

    He also touted his achievements in past assignments, saying: “When I was in the House of Representatives, I moved the motion which led to the establishment of the Federal University of Petroleum Resources now in Ugbomro, near Effurun here in Delta State, and I also moved the motion which made it impossible for the federal government to relocate the prestigious Petrpluem Training Institute Effurun to the    North. This time, when I get to the Senate I will facilitate work in it with adequate infrastructure.”

     

  • Ministry, BPE to revive steel rolling mills

    The Ministry of Mines and Steel Development on Monday said it was partnering with the Bureau for Public Enterprises (BPE) to revive the Delta Steel Company and other steel rolling mills.

    The Director, Steel and Non-Ferrous Metals Department in the ministry, Mr. Also Abdullahi, made this known in a chat with the News Agency of Nigeria (NAN) in Abuja.

     

    Abdullahi said it was necessary to revamp the companies, including the steel rolling mills in Jos and Osogbo, to boost steel production and create jobs.

    He said the ministry and BPE were discussing with owners of the mills to address issues delaying commencement of operations nine years after they acquired the companies.

    He disclosed that the Federal Government sold 80 per cent of its equity in Delta steel to Global Infrastructure Nigeria Limited, which initially pledged to bring in foreign investments.

    According to him, Global Infrastructure, an Indian company, instead, took a loan of over N30 billion from some Nigerian banks which it is unable to repay.

    The director said the banks had since “sold the loans to Assets Management Company of Nigeria (AMCON) and that enabled AMCON to take over Delta steel company.”

    He said the ministry, BPE and AMCON had been discussing with new investors who had indicated interest to acquire the company.

    On Jos Steel Rolling Mill, now Zuma Steel, Abdullahi said it was bought by a consortium of Nigerian and Ukrainian companies, but had been bogged down by disagreements and litigation.