Despite suggestions by the Kogi State government that that the Dangote Cement Company fraudulently acquired the government-owned Obajana Cement Company, the Manufacturers Association of Nigeria (MAN) has strongly condemned the invasion of Dangote Cement Plant on Wednesday by the state’s security outfit, the Vigilantes, on the order of the State Governor, Yahaya Bello, noting that such action will discourage new investments in the State.
But on Friday, the Kogi Government again debunked claims by the Dangote Group that Obajana Cement Factory is owned, 100 per cent, by the Conglomerate, insisting that there was no valid acquisition.
The state government, in a statement issued by the information Commissioner, Kingsley Fanwo, in Lokoja on Friday, claimed that Dangote Group was distorting facts about the acquisition of the company
The government had vowed to recover all accrued dividends from profits made over the years by the Dangote Group, including accrued interests on same.
“As a first step, the Specialised Technical Committee on the Evaluation of the Legality of the Alleged Acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited has expressly asked the Kogi State Government to cancel the existing seven Certificates of Occupancy.
“This is part of the recommendations contained in the report of the 10-man committee, headed by the Secretary to the State Government, Dr. (Mrs) Folashade Ayoade, and submitted to Governor Yahaya Bello of the state.
‘”It’s very important to make it clear to the general public that the state has all the relevant documents to prove that the purported acquisition of Obajana by Dangote was null and void,” he said.
Fanwo noted that Kogi State indigenes would not be intimidated into forgoing their birth rights to any individual or institution, no matter how highly placed.
The Commissioner said that Gov. Yahaya Bello was committed to his inaugural promise that his administration “shall exist for the sole purpose of serving the superseding interests of the people of Kogi State”.
He said, “We want to assure the good people of Kogi State that, with God on our side, what belongs to the state shall be recovered, including all dividends and interests on profits from inception till date. The Dangote Group is just distorting facts to save its face.”
“The detailed committee report, which was made public on Thursday, by the SSG, also charged the government to take steps to recover Obajana Cement Company Plc now changed to Dangote Cement Company Plc.
“Ayodele had revealed with documents that the purported transfer of Obajana to Dangote Industries Limited, was “invalid, null and void”.
“She disclosed in the report that three Certificates of Occupancy for Obajana Cement Company Plc, which were solely owned by the Kogi State Government at the time, were used to obtain a loan of N63 billion by Dangote,” he said.
According to him, in view of its findings, the committee therefore recommended that Kogi State should take steps to recover the Obajana Cement Company from the Dangote Group.
“The committee also said, “Agreement between Kogi State Government of Nigeria and Dangote Industries Limited, dated 30th July 2002 and supplemental agreement dated 14th February 2003, as contained in Exhibit 71 of the Judicial Commission of Inquiry Report, purporting the transfer of Obajana Cement Company Plc to Dangote Industries Limited, are all invalid, null and void.
“There is no evidence of consideration paid by Dangote Industries Limited to Kogi State Government from the alleged transfer of Obajana Cement Company Plc and no dividend was paid to the state from the profits realised from the inception of Dangote Cement Company Plc to date.
“By the assignment of the three certificates of occupancy, the title in Obajana Cement Company Plc, still vests in Kogi State Government as the sole owner. The three documents were used to obtain a loan of sixty-three billion naira only (N63,000,000,000.00) to finance the construction of the cement plant in Obajana, ” he averred.
Recall that the President, MAN, Mansur Ahmed, at a press conference to herald its 50th Annual General Meeting (AGM) scheduled to hold on October 17-19, said the Kogi State action is of great concern, added that it is unimaginable that a State government would take such drastic action to shut down a plant that provides job opportunities and economic activities on a huge scale for the people of Kogi State.
“The action appears to be taken by the government and it is alleged to be an effort for some alleged claim on some alleged payment of taxes that have not been made or recovered from the company,” Ahmed said.
He added that the move is totally illegitimate; noting that if the State Government has any issue against any member of its association or corporate citizen, the appropriate thing to do is to take the member to court.
“You cannot use strong-arm tactics to shut them down or impose very severe restrictions on their operations simply to force them. This is illegal and I believe that what has happened will not happen in a normal operating environment,” he said.
He said MAN has taken up the matter with the Federal Ministry of Industry, Trade and Investment, to help address the anomaly in Kogi State.
“We have no reason not to pay taxes to the Kogi State Government as and when due, and I am aware that Dangote Industries is one of the highest tax-payers in Nigeria. But, if indeed for whatever reason that there is a tax for the Kogi State Government on Dangote, it has measures and ways of recovery and there is no justification to threaten the closure of that industry.
“We are totally opposed to that kind of measure because there are ways to resolve this amicably in a legal manner and we hope that the relevant authorities in both the federal and state levels would intervene to ensure that this kind of action is not repeated,” he said.
On its part, the Dangote Group, while reacting to the take over of its premises by state government officials and members of its own security outfit said, “The management of Dangote Cement Plc, wishes to inform members of the public, especially its customers and other stakeholders of the recent invasion of its Obajana Cement Plant, Kogi by armed vigilantes on the orders of the state government.
“The vigilantes, led by some officials of the state government were apparently acting on a resolution of the Kogi state House of Assembly on controversial tax claims.
“Claims that the state governor had also contradicted when he said the shutdown was due to an alleged invalid acquisition of the company by Dangote Industries Ltd.
“In the process of forcefully evicting the workers to enforce the shutdown, the vigilantes shot at 27 of our workers and also destroyed some of the company’s property at the plant.
On Thursday, the Kogi State government presented to the public the report of the specialised technical committee on the evaluation of the legality of the alleged acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited.
The detailed report submitted to Governor Yahaya Bello last month was presented to the public by the Secretary to the State Government (SSG), Dr Folashade Ayoade.
She revealed with documents that the purported transfer of the firm to Dangote Industries Limited was “invalid, null and void”.
Ayoade also disclosed in the report that three Certificates of Occupancy for Obajana Cement Company Plc, which was solely owned by the Kogi State government at the time, were used to obtain a loan of N63 billion by Dangote.
According to her, the committee, in view of its findings, has, therefore, recommended that Kogi State should take steps to recover Obajana Cement Company from the Dangote Group.
The committee, chaired by the SSG, also recommended that: “Kogi State government should take steps to recover all accrued dividends from profits made over the years, including accrued interest on same.
“Kogi State government should take steps to cancel the existing seven Certificates of Occupancy in the name of Dangote Cement Company.”
Stressing the aberration in the arrangement, the SSG said, “Agreement between Kogi State government and Dangote Industries Limited, dated July 30, 2002, and supplemental agreement dated February 14, 2003, as contained in Exhibit 71 of the Judicial Commission of Inquiry Report, purporting the transfer of Obajana Cement Company Plc to Dangote Industries Limited, are all invalid, null and void.
“There is no evidence of consideration paid by Dangote Industries Limited to Kogi State government from the alleged transfer of Obajana Cement Company Plc and no dividend was paid to the state from the profits realised from the inception of Dangote Cement Company Plc till date…
“By the assignment of the three certificates of occupancy, the title in Obajana Cement Company Plc, still vests in Kogi State government as the sole owner. The three documents were used to obtain a loan of N63 billion only to finance the construction of the cement plant in Obajana.
Speaker of the Kogi State House of Assembly, Matthew Kolawole, specifically noted that the acquisition of the Obajana Cement Company by Dangote was without the resolution of the House of Assembly, which made the process null and void.
“It is clear that you cannot sell a state government property of any form without the resolution of the Kogi State House of Assembly.
“All the transfer process of the share capital to Dangote from Obajana by the previous administration was without any law backing it by the state House of Assembly,” Kolawole stated.
In his remarks, Governor Yahaya Bello said that he had taken the bold step, in line with his mandate to safeguard the lives and livelihood of the people of Kogi State, including residents, and to ensure their wellbeing.
Bello said this was also coming on the heels of protests by the people of the state who felt they had been suppressed and marginalised by the Dangote Group who had come to rip them off.
The governor, however, said that the state was open to discussions once Dangote Company Plc is ready to come clean.
“We received several petitions from the general public over this particular subject matter. In the past five to six years, all efforts to sit with the proprietors of the Dangote Conglomerate failed.
“We set up a committee to look into this and invited the Dangote company to discuss with them and tell them the imminent dangers they are exposing the people to, but it all fell on deaf ears.
“I am here to defend my people, and from all reports, it is clear that Obajana Cement Company does not belong to Dangote,” Governor Bello declared.
▪︎ Additional reports by NAN and Tribune