Sen. Adeniyi Adegbonmire, the Chairman of the Senate ad hoc committee investigating the activities at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, Itakpe, has expressed the need to dispel the myths surrounding the struggling steel company.
He made this assertion on Wednesday during a meeting with the company’s workers and management at the steel company in Ajaokuta, Kogi State.
He said: “The committee is here at the steel plant with a firm commitment to uncover why the Ajaokuta steel plant remains non-operational, decades after its establishment.
“Our visit is aimed at gaining an understanding of the situation and gathering first-hand information. Our mission is to break the jinx and ensure the steel plant becomes operational.”
In his opening remarks, the Acting Chief Executive Officer of the company, Mr.Kanwai Joseph, thanked the committee for their interest in the company.
He said: “We recognise the trust placed in us to manage national assets such as this steel plant, and we are committed to transparency and accountability.
“Although the plant has not been in production, we strive to operate with integrity, preserve this significant government investment, and deliver quality products when in operation.
“We understand that allegations of corruption and inefficiency are serious concerns. We assure you of our full cooperation during this investigation.
“You will have unrestricted access to our facilities and information, and our team is prepared to address any questions or concerns to ensure a thorough and impartial investigation.
“We will begin by providing an overview of the company’s past, its current state, and the reasons for the present situation.”
Designed in 1979, the Ajaokuta Integrated Steel Complex includes a metallurgical process plant, an engineering complex, and various auxiliary facilities.
The project aims to invigorate essential industrial and economic activities, both upstream and downstream, which are crucial for diversifying the economy towards industrialization.
Persecondnews recalls that despite the company’s inability to produce a single sheet of steel since its founding, the Federal Government reportedly paid workers of the dormant steel company N38.9 billion in salaries and allowances over a 10-year period in August 2024.
In September 2024, the Federal Government, through the Minister of Steel Development, Mr. Shuaibu Audu, signed a Memorandum of Understanding with the builders of the Ajaokuta steel plant, Messrs. Tyazhpromexport, for the rehabilitation, completion, and operation of the plant and the National Iron Ore Mining Company.
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