World Bank Fingered in Ajaokuta Steel Scandal

An international dimension was yesterday added to the on-going controversy surrounding the collapse and inefficiency of the Ajaokuta Steel Company.

The African Iron and Steel Association revealed that the World Bank was behind the efforts at stunting the growth and development of the largest steel firm in Africa.

The revelation was made by the secretary-general of the professional body, Dr. Sanusi Mohammed, while speaking to newsmen in Abuja yesterday.

The association also called on President Umaru Musa Yar'Adua to constitute an independent panel to investigate allegations that his Minister of Justice, Micheal Aondoakaa, was frustrating the prosecution of the Global Infrastructures Nigeria Limited (GINL) owned by Indians.

According to Mohammed, "The World Bank has no doubt contributed to the destruction of the steel and iron sectors in the country. In 1990, the bank sent a team to inspect facilities at Ajaokuta which reported back to it. The report condemned the progress being made by the company even though it had advanced to a high point. The same thing happened around 2003. The World Bank clearly has an interest in the Ajaokuta project. The team members were very angry with the progress so far made. And as I speak to you now, they have not given up, but are using all available means to sabotage the national project."

Mohammed wondered why the Federal Government had not commenced the prosecution of the Indian Company (GINL) officials who milked the company to its present state of despair, asking the officials whether the justice ministry was also a conspirator.


"It is surprising and shocking to hear that the minister of justice is trying to bring back the criminals who destroyed our national asset. It is still a speculation and no evidence for now. But if it proved to be so, then I am ashamed of this country. What is giving credence to the allegation is the refusal or reluctance of the Justice ministry to prosecute the Indians five months after the contract was revoked by the Federal Government. Why is the government delaying? Look at the willful destruction, unethical engineering practices, damages done and nothing is being said or done. It is time the report is implemented and the Indians arrested," he said.