- Say new managers inefficient
Stakeholders in the steel industry have accused the Asset Management Company of Nigeria of selling off the Delta Steel Company in Aladja, Delta State, to an alleged inefficient firm that had run the company aground.
The stakeholders also accused AMCON of selling off DSC under questionable circumstances. Questions have been raised over AMCON’s running of the steel company, following allegations that the firm was crudely sold to Premium Steel and Mining Company as a result of debts owed several banks by its former operators, Global Infrastructure Nigeria Limited.
The sale of DSC at N28 million have become contentious, owing to allegations of fraud in the deal and accusations of shady financial deals with debtors, among others, leveled against the former Managing Director of AMCON, Mr. Mustapha Chike-Obi, who has since been sacked by President Muhammadu Buhari.
The Point gathered that GINL, an Indian firm, which earlier ran DSC aground, is now being canvassed as the best firm to handle the steel company, following the alleged failure of AMCON and Premium Steel and Mining Company to efficiently manage the company since it was sold.
Industry stakeholders such as the Udu Indigenous Contractors Association of Nigeria, an umbrella body for contractors from Udu and non-indigenes of the area in Delta State, who had provided goods and services to the company while it was being managed by GINL, have continued to kick against the new development.
The sale of DSC at N28 million have become contentious, owing to allegations of fraud in the deal
According to them, the new managers, Premium Steel and Mines Limited, lacked the technical capacity and the financial wherewithal to run a big company like the DSC Plc. The stakeholders, however, raised their objections to the handing over of the DSC by AMCON to the new managers in a letter they sent to President Buhari.
The letter was signed on behalf of the members of the association by Happy Seiki and Prince Joshua Efe, Chairman and Head of Debt Collation Committee, respectively. The association also accused AMCON of allegedly sacking the over 3000 workers of DSC and closing down the company. It stressed that though AMCON paid all the workers’ salaries and arrears, including bills, before it sent the staff away, it owed the stakeholders an explanation for its actions against GINL.
The association also described AMCON intervention in the affairs of GINL in DSC as destructive and ill-advised, noting that the company would have overcome the debt owed if it was given the opportunity and time to do so
