The House of Representatives, on Tuesday, reversed the sale of Delta Steel Company, Alaja, Delta State, to Global Infrastructure Holdings Nigeria Limited. The company was sold to Global Infrastructure of India by the administration of former President Olusegun Obasanjo. It said, “Due process was not adhered to” in the transaction, which was undertaken by the Bureau for Public Enterprises in 2004.

BUA International Nigeria Limited, an indigenous firm, which won the rights in an open and competitive bidding, after paying about $21m, was reportedly short-changed by the BPE. The BPE, according to investigations conducted by the House Committee on Public Petitions, later sold DSC to Global Infrastructure, which did not participate in the bid that peaked at $31m.

The House, which was presided over by the Deputy Speaker, Alhaji Bayero Nafada, also directed the Economic and Financial Crimes Commission to probe the circumstances that led to the transfer of Delta Steel to Global. The House similarly tasked the EFCC to probe the sum of $250m allegedly taken from Nigerian banks and laundered by Global, a development, which had affected the fortunes of the banks and depositors.

The House had devolved into the Committee of the whole after Mr. Cyril Maduabum, the chairman of the public petitions committee, submitted its recommendations to the lawmakers to consider. Parts of the resolution read, “That due process was not adhered to in the procedure leading to the purchase of Delta Steel Company by Global Infrastructure Holdings Nigeria Limited. The BPE had said previously that the company was sold to Global Infrastructure on a “willing buyer, willing seller” basis after its negotiations with BUA were stalled.

The bureau said that Global actually offered $30m for 80 per cent of DSC compared with BUA’s offer of $20.5m. It said that the Global’ offer was more attractive as it was agreed that the company would complete the Itakpe-Warri rail line and dredge the Escravos bar as part of the deal.