Kogi Govt pledges to recover Obajana Cement from Dangote
- Manufacturers Association of Nigeria describes Kogi govt action as worrisome
The Kogi State Government, on Thursday, 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 of the state, last month, was presented to the public by the Secretary to the State Government, Dr. (Mrs) Folashade Ayoade.
Ayoade 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 was solely owned by the Kogi State Government at the time, were used to obtain a loan of N63billion by Dangote.
She pointed out that 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.
Accordingly, 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.”
Speaking further on the irregularity in the arrangement, the SSG 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.
In her words “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 (63,000,000,000.00) to finance the construction of the cement plant in Obajana.
Speaker of the Kogi State House of Assembly, Matthew Kolawole, also highlighted 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 added.
The Kogi State Governor Yahaya Bello disclosed 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 as the people of the state felt they had been suppressed and marginalised by the Dangote Group who had come to rip them off.
The governor stated however that the state was open to discussions once Dangote Company Plc is ready to come clean.
Governor Bello said “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.”
In an interactive section during the Manufacturers Association of Nigeria (MAN) media briefing with journalists to announce its 50th Annual General Meeting in Lagos, Thursday, the President of MAN, Engr. Mansur Ahmed described the action of the Kogi State government to shut down the Obajana Cement Company as worrisome.
Engr Ahmed said” The Kogi State government threat to shut Obajana Cement Company is worrisome because the Company provides jobs. The appropriate thing the state government should do over its alleged claim of payment of taxes is to take the Company to court and not a strong arm tactics to shut down the Company. We have taken the matter to the minister. I believe the Dangote pays its taxes. The state government have ways and means to recover taxes other than closure of a Company.”
