The House of Representatives Committee on Public Assets has launched an investigation into the controversial sale of Delta Steel Company (DSC) in Aladja, Delta State, following allegations of undervaluation, misuse of assets, and harassment of residents.
The Director-General of the Bureau of Public Enterprises (BPE), Mr. Gbeleyi, disclosed that DSC, initially valued at $700 million, was sold for just $30 million under the Federal Government’s privatisation policy. In 2005, 80% of the company was sold to Global Infrastructure Nigeria Ltd, while the government retained a 20% stake.
According to Gbeleyi, residential buildings and land belonging to the company were allocated to workers and pensioners as part of their settlement. However, after privatisation, Global Infrastructure allegedly used DSC’s assets as collateral for a loan from Ecobank. Due to non-performance, the Asset Management Corporation of Nigeria (AMCON) took over the assets in 2015 and later sold them to Premium Steel and Mines Ltd.
The BPE DG accused AMCON of selling the assets without seeking clarification from his agency. He stated that while BPE was aware of the Ecobank loan, it had no knowledge of the three other banks AMCON listed as creditors.
Petitioners, including the Association of Concerned Residents of Camp 2, 4, and 5 of DSC, claimed that AMCON and Premium Steel and Mines had been using security operatives to intimidate and evict them since 2015. They insisted that their residential buildings were not part of the assets used as collateral for the loan obtained by Global Infrastructure Nigeria Ltd.
Speaking on behalf of the petitioners, Dr. David Emomotimi and Richardson Osifor alleged that AMCON inflated the original loan of N250 million from Ecobank to N7 billion.
In response, AMCON’s legal representative, Chukwuemeka Umunakwu, stated that the corporation acquired DSC’s assets for N22 billion and later sold them for N32 billion. However, the Office of the Accountant General of the Federation (AGF) revealed that while it had a record of BPE’s N3 billion receipt from the initial sale, there was no proof of AMCON’s N32 billion payment into the Federation Account.
The Managing Director of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, noted that his agency withdrew from DSC matters due to multiple controversies surrounding its sale and management.
Chairman of the House Committee, Ademorin Kuye (APC, Lagos), affirmed that the committee would thoroughly investigate the transaction. In the meantime, the committee directed AMCON and Premium Steel and Mines to stop harassing residents until the probe is concluded.
