Why Kogi State sealed Dangote Cement Factory
The Kogi State House of Assembly has ordered the closure of the Dangote Cement Factory, Obajana. The company was sealed following agitation by Kogi indigenes on the questionable circumstances surrounding the acquisition of the company.
Jubilant youths, who had trooped to the company on hearing the news of the closure, chased workers away but were stopped by Kogi officials, who promptly waded in to avoid damage.
The youths claimed that the Company had neglected the community they are making billions from, despite the fact that residents are dying from illness due to pollution.
The state House of Assembly alleged that Dangote, upon invitation by the Assembly, requested more time but did not appear at the House to show any evidence to the contrary.
The Commissioner for Information in the state, Kingsley Fanwo, while responding to journalists’ questions, said, “Pursuant to the Constitutional authorities of the Kogi State House of Assembly, and upon petition by the people of Kogi State, an investigation was carried out on the acquisition of Obajana Cement Company by Dangote Company. It was found that no valid acquisition took place, as Dangote could not show evidence of what was paid as consideration for the acquisition. The Legislators invited the Chairman of the Company, Aliko Dangote, before the house for explanations but he failed to appear before the state Assembly, giving excuses. The House of Assembly, therefore, ordered the closure of the company, pending when they are able to present it with credible evidence of a valid acquisition.”
The Director-General, Lands, Kogi State, Nasir Ochi, who was also on the ground added: “In this regard, the security agencies were directed to give effect to the resolution. Similarly, the various organs of Government were also informed about this resolution. By law, Kogi State House of Assembly can conduct an investigation, order anyone to appear before it or produce any document. Failure to obey such summons may lead to the arrest of a person who failed to appear. The Government of the State has an obligation to also respect and give effect to such resolution from the House in the interest of peace and security of the State, and to avoid anarchy or breakdown of law and order. In this regard, Dangote has an obligation to respect and give effect to the resolution of the Kogi State House of Assembly to avoid any act of lawlessness.”
The Kogi State House of Assembly had earlier resolved to shut down Dangote Cement Company situated at Obajana pending its submission of relevant documents that back up its operations and ownership structure, especially the transition from Kogi Cements to Dangote Cements.
The House considered inviting former Governor Ibrahim Idris to shed light on the considerations given to the State during the signing of an agreement between the company and the State.
These considerations include the ten per cent shares of the State in the company, the company’s social responsibilities to the State and other benefits.
These were part of the House resolutions on Tuesday after considering the ad-hoc committee’s interim report by Hon Isah Tenimu.
The House also directed the Commissioner of Police, the State Commandant of Civil Defence Corps, and the Head of Vigilante Group in the State to ensure the resolution was enforced.
The External Solicitor of Dangote Cement Company, Mr Leeman Salihu, had submitted some documents, which are a Certificate of Incorporation and an agreement signed in 2002 and 2003 but craved the indulgence of the House to allow other discussions on the issue to be out of the public glare.
He pleaded that the House should allow the company to engage in further conversation with it and the state economic team. The request was, however, declined.
The House insisted that Kogi State Cement company could not have been transferred to Obajana Cement Company and then Dangote Cement Company 100 per cent without any consideration.
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