Saturday, April 20, 2024

Review NIOMCO, ASCO concessions – Rep tells FG

The Vice Chairman, House of Representatives’ Committee on Ports, Harbours and Waterways, Hon. Ajanah Kabir, has charged the Federal Government to go back to the drawing board and capture the host communities in the Memorandum of Understanding that conceded the National Iron Ore Mining Company and Ajaokuta Steel Company to Global Infrastructures Holdings Limited of India.

He argued that government should not place the citizens and host communities at the mercy of foreigners, insisting that GIHL must be compelled to adhere strictly to the laws governing operations in this country, by fulfilling its Corporate Social Responsibilities to the host communities.

In the absence of these, he added, the agreement can at best be described as a lopsided effort that negated the well-being of the host communities.

He added, “Another heart-breaking shortcoming associated with GIHL is its failure over the years to meet its financial obligations to workers, as well its inability or refusal to pay back loans it took from banks.

This reputation does not encourage confidence of the people in a corporate entity called GIHL. “When the Minister of Mines, Steel and Mineral Development appeared before us, we made it clear that he must ensure that the second coming of GIHL to ASCO and NIOMCO must be based on people oriented policies, which will be in the mutual interest of the foreign investor, GIHL in this case, and the host communities.”

Kabir, who represents Adavi/ Okehi federal constituency of Kogi State, alleged that at no time did GIHL made NIOMCO or ASCO beneficial to the host communities to the extent that it should make the host communities feel its presence.

He said, “The company has not executed a task in fulfillment of its CSR to the host communities as encouraged by extant laws. They sank no boreholes, constructed no roads, and have even failed to manage the company efficiently, such that it generates resources for payment of wages to the workforce, most of who are indigenes of the host communities. Even part time workers, whose wages are meager suffer the same fate.

“It is disheartening that the 16- page document, which concedes NIOMCO and ASCO to GIHL, lacks merit in terms of respect for the host communities.

So, we hope for grace on the part of the host communities to kindly accommodate the Indians. Naturally, it is somewhat difficult for the host communities to trust and happily accommodate GIHL, because there have been a lot of betrayals of trust.

Of course the resources belong to the federation, there are laws that provide for compensation of host communities via CSR.”

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