FG to Declare Stand on Solgas Soon
FCT
From Onyebuchi Ezigbo in Abuja
Federal Government may soon make public its position on the 10-year management contract involving the US-based firm, Solgas Energy, for the rehabilitation and administration of the abandoned Ajaokuta Steel Company Nigeria Limited. The agreement was entered into last year.
THISDAY reliably gathered that government has directed the monitoring committee established to oversee the implementation of the agreement to furnish it with the latest on the happenings at the steel complex.
Consequently, the Ministry of Power and Steel has moved to understudy the various contending issues including what led to the resolution by the Senate for the probe of Solgas management team.
"Government is presently understudying the issues involved and will make public its stand on the matter in a matter of days," said the source.
Senate Tuesday adopted a resolution urging President Olusegun Obasanjo to direct the searchlight of the Economic and Financial Crimes Commission (EFCC) and that of the Independent Corrupt Practices Commission (ICPC) on Solgas over alleged fraudulent activities in the operation of Ajaokuta steel company.
The Senate's action was based on the report of its committee on Power and Steel Development headed by Senator Arthur Nzeribe, which among others expressed doubts on the ability of Solgas to fulfill terms of the contract and to rehabilitate, complete, commission and operate the steel company.
The report stated that Solgas Energy Nigeria "is not capable and does not possess the financial strength, managerial and technical capacities to handle the concession agreement in all ramifications"
Workers of the steel company last Monday protested an alleged non-payment of their salaries and demanded the review of the contract agreement.
But head of the management team and vice chairman of Solgas, Mr. Seun Oyefeso, reacted yesterday to the flurry of criticisms and accusations by stakeholders, saying Solgas has not deviated from the terms of the contract agreement.
Oyefeso blamed the firm's ordeal on the handiwork of opposing forces that were bent on discrediting the company to achieve their motive.
However, a presidency source said Federal Govern-ment has independently carried out investigations on the operations of the steel company since the inception of management agreement in 2003.
Minister of Power and Steel, Senator Liyel Imoke, has himself paid fact-finding visits to the steel complex to see things for himself, the source said.
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