Lagos — A panel of jurists adjudicating an arbitration brought before it in London, United Kingdom, by Solgas Nigeria Limited, erstwhile managers of the Ajaokuta Steel Company Limited (ASCL), against the Federal Government, has found the later liable and has ordered the company to file its statement of claims.

Vanguard learnt that while indicting the Federal Government over wrongful termination of the 10 years financial management services contract entered with Solgas, the Arbitration also questioned the actions of government personnel and that of Mr. Seun Oyefeso, the Executive Vice Chairman of the company.

Solgas is expected to submit its statement of claims within a stipulated time frame to enable the arbitration panel determine government's liability and award the company its due recompense.

It would be recalled that in June of 2003, Solgas Energy Limited, a limited liability company incorporated under the laws of the Isle of Man, entered into an agreement ("Concession") with the federal government of Nigeria and Ajaokuta Steel Company Limited, a Nigerian company wholly owned by the federal government of Nigeria.

The Concession obligated Solgas to complete, refurbish and expand the Ajaokuta Steel Plant in Nigeria and to build a gas processing plant to supply the steel plant with electrical power.

In 2004, Solgas began searching for a subcontractor to assist it in preforming its obligations under the Concession. Solgas asserts that a subcontractor was sought to increase the efficiency and profitability of the steel plant.

Global Steel counters that Solgas was primarily a natural gas company and needed the assistance of a steel company to fulfill its commitments.

However in 2004 after the 10 years financial management service contract was terminated by the Federal Government, Solgas filed for wrongful termination before a panel of jurists in London.

Vanguard gathered that claims by the company against the Federal Government could be in excess of $1.8 billion.

Solga's principal business office is located in Uvalde, Texas. Thomas Russell, the chairman and CEO of Solgas, stated that Solgas received e-mail correspondence from numerous representatives of the "Global Steel corporate family" "push[ing] hard for the opportunity to participate in the project." Russell stated that the representatives identified themselves as working for "Ispat,"

"LNM Holdings," and "the Mittals." Russell further stated that "[w]e were consistently told that we were dealing with 'Ispat,' a well-known Indian steel conglomerate, recognized for its expertise in revitalizing steel plants in the developing world.