Report voids purported transfer of Obajana cement factory to Dangote »

… As Gov Bello vows to uphold his oath of office in seeking the interest of his people & State.

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 chairman of the committee who doubles as the secretary to the state government, Dr. (Mrs) Folashade Arike Ayoade, while reeling out the detailed report submitted to the Governor, in September, revealed with documents to the public that the purported transfer of Obajana cement factory to Dangote Industries Limited, was “invalid, null and void”.

Dr Ayoade in her presentation disclosed in the report that the 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, given its findings, has discovered an aberration in the arrangement. Dr Ayoade noted that the 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 dividends was paid to the state from the profits realised from the inception of Dangote Cement Company Plc to date.” She said.

The committee chaired by the SSG, by their assessment of the three certificates of occupancy, nthe title in Obajana Cement Company Plc, still vests in Kogi State Government as the sole owner. The three documents were used however 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.

Dr Ayoade noted that the committee therefore has recommended that Kogi State should take steps to recover Obajana Cement Company from the Dangote Group and that the Committee, has 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 and to take steps to cancel the existing seven Certificates of Occupancy in the name of Dangote Cement Company.”

Addressing the issue further, the Speaker of the Kogi State House of Assembly, Rt. Hon. 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 totally 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.” Kolawole stated.

Hon Kolawole stated further that the transfer process of the share capital to Dangote from Obajana cement factory by the previous administration was without any law backing it by the state House of Assembly.

Governor Yahaya Bello in his remarks thanked the committee for being objective in their assessment of the issue brought before it and noted that bold steps, in line with his mandate to safeguard the lives and livelihood of the people of Kogi State, including residents, and to ensure their wellbeing will be taken.

The governor however, stressed that the issue came on the heels of protests by people in the state who felt they had been suppressed and marginalised by the Dangote Group, who had come to rip them off. Gov Bello stated that several petitions had been received from the general public on this subject, and that all attempts to meet with the proprietors of Dangote Conglomerate had failed in the past five to six years.

Gov Bello also revealed that the government had formed a committee to investigate the matter and invited the Dangote company to meet with them to discuss 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,” Gov Bello declared.

Gov Yahaya Bello speaking further assured the people that the right thing to do, especially in the overall interest of the people he swore an oath to protect, would be done without fear or favor, particularly in light of the committee’s recommendations.

The governor, however, said that the state was still open to discussions once Dangote Company Plc is ready to come clean.