Battle for the soul of ASC rages as NASS moves to amend privatisation law

The federal government has given a clear indication that it is not ready to change its mind in going ahead to re-privatize the moribund Ajaokuta Steel Complex (ASC) in Kogi State, it is yet to hire transaction adviser.

But to tame the entire move by the executives, the House of Representatives have gone a step further in its opposition to the concession of the company by proposing to amend the Privatisation Act.

During plenary last week, the lawmakers passed a vote of no confidence in the Minister of Mines and Steel Development, Dr. Kayode Fayemi, which means that the House would no longer accord him the recognition of addressing him as “honourable minister.”

Otherwise, the Reps have placed the Minister where the Senate had placed the embattled chairman of EFCC.

Though in other democracies, passing of vote of no confidence on a serving minister by lawmakers has provided enough grounds for the President to sack him, but it may not work here, however.

Business Hilights recalls in a resolution in Abuja, the House observed that Fayemi’s decision to engage PricewaterhouseCoopers to conduct a technical audit on the ASC meant that he was bent on the firm’s concession.

The House mentioned several countries of the world including US and South Africa where the company had been barred from handling businesses for the government due to infractions.

However, the move to amend the Privatisation Act according to an insider is to expunge the ASC from the list of public assets in the schedule that could be privatised or given to private investors as concession by the Federal Government.

The amendment will also remove the powers of the National Council on Privatisation (NCP) as the authority to decide on which firms should be on the schedule.

The proposal to amend the Act was moved by the Leader of the House, Mr. Femi Gbajabiamila. It was endorsed by members.

Gbajabiamila’s proposal was an amendment to an initial motion moved by Mr. Ahmed Yerima and 24 other lawmakers.

The motion stated that PwC played a role in one of the past failed attempts to give out Ajaokuta on concession.

A copy of the motion accessed by Business Hiligfhts Abuja Bureau chief read in part; “The House is further aware that the audit of the Ajaokuta Steel Company is being undertaken by PricewaterhouseCoopers, a globally discredited firm, having been sanctioned in India, with a two-year audit ban for infractions of over $1bn.

“It was sanctioned in Brazil for which it paid $50m as fine; fined in the United Kingdom for £5.1m, the largest-ever sanction imposed by the UK regulator; paid $225m and $25m respectively as fines to TYCO shareholders in the US and Bank of Tokyo-Mitsubishi, where it was implicated for money laundering for Iran, Sudan and Myanmar.

“It was blacklisted for roles in terrorism and human rights abuses, among other infractions and irregularities in its operations, all of which have left its reputation in tatters.”

“The House is concerned by the allegation that PricewaterhouseCoopers was informally engaged by Global Steel to assist and advise them on how to recover Ajaokuta Steel Company and the National Iron Ore Company, Itakpe from the Federal Government of Nigeria in 2012 at the onset of negotiations.

“Worried by 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).”

The general position of the lawmakers’ on the matter is to pressure the government to complete the project which is remaining about five per cent as a public property than running into another murky waters of shrouded privatization process.