Hon. Ajanah Kabir is the Vice Chairman, House of Representatives Committee on Ports, Harbours and Waterways in the House of Representatives. In this interview with FRANCIS KADIRI, Kabir, who represents Adavi/Okehi federal constituency, calls on the Federal Government to review the terms under which the Ajaokuta Steel Company and National Iron Ore Mining Company were recently re-conceded to Global Infrastructures Holdings Limited of India, citing the questionable antecedents of the company. Excerpts:
Kogi State hosts two very significant national treasures, Ajaokuta Steel Company and the National Iron Ore Mining Company. Against popular opinion, the Federal Government reconceded the companies to Global Infrastructures Holdings Limited. What is your take on this development?
I am an elected representative of Okehi/Adavi, so Ajaokuta is in my purview in that regard. Global Infrastructures Holdings Limited has very bad antecedents with the communities that host it. I recall that at some point in time when GHL was first saddled with the responsibility of managing NIOMCO, the company had a face-off with its host community, which resulted in many deaths. Some people were also sent out of business on account of that crisis.
Has the host communities benefitted from GIHL’s Corporate Social Responsibilities?
No. Till date, at no time did GIHL make NIOMCO or ASCO beneficial to the communities, to the extent that it should make the host communities feel its presence. 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. Even part time workers, whose wages are meager, suffer the same fate.
How would you describe the terms under which NIOMCO and ASCO were recently re-conceded to GIHL?
It is disheartening that the sixteen-page document, which conceded NIOMCO and ASCO to GIHL lacks merit in terms of respect for the host communities. But, 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 lots of betrayals of trust. Of course the resources belong to the federation, but there are laws that provide for compensation of host communities via CSR.
How can this anomaly be corrected?
The solution is that government must go back to the drawing board and capture the host communities in the Memorandum of Understanding that conceded NIOMCO and ASCO to GIHL.
Government should not place the citizens and the host communities at the mercy of foreigners. Secondly, 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, the agreement can at best be described as a lopsided effort that negates the wellbeing of the host communities.
Another heart-breaking shortcoming associated with GIHL is its failure over the years to meet financial obligations to workers, as well as its inability or refusal to pay back loans it took from banks. This reputation does not encourage confidence of the people in the corporate entity called GIHL.
When the Minister of Mines and Steel 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 peopleoriented policies, which will be in the mutual interest of the foreign investor, GIHL in this case, and the host communities. So, the host communities must be included in the negotiations that gave rise to the agreements. If this is done, then the Indians too will feel at home in the host communities.
Another heartbreaking shortcoming associated with GIHL is its failure… to meet financial obligations to workers, as well AS its inability or refusal to pay back loans it took from banks. This reputation does not encourage confidence of the people in the corporate entity called GIHL
I tell you with all sense of responsibility that if these considerations are not embraced, the peaceful people of Ajaokuta and Itakpe would feel offended when injustices are meted out to them. I hope that we will be prudent enough to avert whatever can give rise to an uprising of steel avengers. It is very sad that ASCO and NIOMCO, despite their enormous potentials for job and wealth creation, have not been able to contribute to national development. This setback has in itself caused a lot of social menace, as jobless youth become restive.
How would you assess performance of the Kogi State Goverment to date?
Kogi State Governor Yahaya Bello’s agenda for empowerment is one of the most comprehensive and realistic plans you can get in the country. The state has keyed into the resource diversification agenda of the Federal Government. As you are aware that the Governor Bello will take advantage of the potentials of the state and embark on agricultural revolution, while also harnessing the job creation potentials of all other sectors.
As we speak, the administration has designed a roadmap for harnessing of the mining sector. The roadmap is designed to ensure conducive environment for growth of mining businesses in the state. This strategy alone has the capacity to attract a lot of foreign investments to the state. In order to strengthen the inflow of foreign investments, the administration has already awarded contracts for infrastructural revolution, especially, the construction of roads to create the needed linkages, so that prospective investors can get access to the state’s abounding natural resources.
