Kogi government set to reclaim Obajana Cement Company Plc from Dangote

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 Mr Yahaya Bello the Kogi state governor last month was presented to the public by the Secretary to the State Government, Dr. (Mrs) Folashade Ayoade.

She revealed from the content of the document that the purported transfer of Obajana cement company to Dangote Industries Limited, was “invalid, null and void”.

Ayoade 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.

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: the “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 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 the 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 is still vested in Kogi State Government as the sole owner. The three documents were used to obtain a loan of sixty-three billion nairas 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, 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.

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 but that the state was open to discussions once Dangote Company Plc was ready to come to dialogue.

“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.

Meanwhile, the Manufacturers Association of Nigeria has condemned the invasion of the Dangote plant by officials of the Kogi State Government.

MAN described Wednesday’s invasion as illegal and a breach of the fundamental human rights of one of Nigeria’s foremost corporate organisation.