Change your ways or face sanctions, Otti warns Chinese firm

From Boniface Okoro, Umuahia

The days of a Chinese company operating in Abia State may be numbered, unless it ends its alleged unfair labour practices, neglect of the host community and comply with government’s directives.

 This is because the Abia State Governor, Dr. Alex Otti, has said that the continued operation of Inner Galaxy Steel Company in the company in Abia would depend on its good behavior, obeying relevant laws of the land, having regard for the host community, honouring its corporate social responsibility and government financial obligations. 

Governor Otti gave the warning during a meeting with the management of Inner Galaxy Steel Company and the Ukwa West Traditional Rulers Council held at the Governor’s residence.

Inner Galaxy is a Chinese company operating from Umuahala-Obuzor in Ukwa West Local Government Area of Abia State.

The meeting was called following a petition by the Traditional Rulers Council of Ukwa West to the Governor against the company, alleging acts of abuse of employees and negation of corporate social responsibility by the company.

The Governor said that the government’s resolve to broker peace between the company and the host community was based on its (government) determination to encourage businesses in the state.

He however sounded it clear that the continued operation of the company in Abia would be based on its good behavior and in playing by the rules, respecting the host community, carrying out its corporate social responsibility and paying taxes accordingly.

Governor Otti told the Inner Galaxy management that under his watch, Abia State Government would not tolerate any form of non-compliance to government directives.

The Governor said that the government follows due process in addressing every matter and calls for the meetings to give fair hearing to all the parties involved but warned that he would not tolerate any form of disrespect for government directives.

“The reality is that, if the government gives an instruction and it is not carried out, I will shutdown the place,” he said.

“The issues raised must be discussed in meetings and the parties must comply. If they do not comply, I will bring out the big stick and nothing will happen. I am sure they have seen our government. It is a very serious-minded government. We don’t cut corners, so if you are supposed to do something, you do it,” the Governor added.

The Abia Chief Executive noted that the matter involving the company showed that there was no good communication between the company and the host communities, pointing out that “successful companies set up a host relations or community relations department which interface between the company and the host community.”

“It is not very good for it to be reported that you have not sat down with the leadership of your host community and if they write you letters, you ignore those letters. The truth about it is that if the community is not there, you cannot exist. If the community is in turmoil, your business will be in turmoil no matter how much of security agencies you surround yourselves with,” Governor Otti stressed.

He enjoined the company to become a good corporate citizen by carrying out activities that would positively impact on its host community.

“If a road is bad and the road leads to your company, there is something called corporate social responsibility”.

“Our people say that charity begins at home and there is another saying that wherever you live as your home, that is where you will protect first”.

He further urged the Inner Galaxy management to conduct an internal audit to determine the exact amount their staff were being paid to address the issues being raised about wages.

The Governor equally referred to reports that the company uses security agents attached to the company to harass members of the host community and he charged it to desist from encouraging such acts.

Governor Otti also charged the management of the company to make concerted efforts to redeem its image because the company rarely elicits good remarks from members of the public.

“This is the second time I am meeting with you and the first time, I told you that your name is not good because anytime your name is mentioned, it does not bring good remark from people”.

“It means something is wrong and to add insult to injury, your staff was now involved in this one that I don’t want to talk about because it is still before the court.” It was alleged recently that one of the Chinese Managers of the company allegedly pushed to death, a female staff who rejected his love advances.  

“While you may not take responsibility as a company because any person that commits a crime takes responsibility for the crime, but it is not a good scene,” the Governor noted.

He advised the company to hold quarterly meetings with the host community to improve on its engagements with the community and directed the Mayor of Ukwa West LGA, Mr Newman Azu, to coordinate such meetings and ensure  that reports of the meetings are made available to him.

In his speech, the Chairman of Ukwa West Traditional Rulers Council, Eze Augustine Dike, said that the Council had received reports that the company mistreats its employees, adding that the community had not felt any developmental impact from the company.

“There are persons under their employment that are supposed to earn N30, 000 but at the end of the month, they are given N15, 000,” the monarch alleged.

Reeling out the litany of the sins of the company, the Royal father continued: “If you (staff) use the convenience, the company would surcharge you and the company does not have a healthy relationship with the host community and has not done anything in the community. They were using the Umuahala Road which leads to their company but immediately the road became impassable, they abandoned it and created an entirely new access road for themselves.”

Eze Dike complained that the community has written several letters to the company for dialogue but all were ignored, which informed why they had to petition the Governor.

Also, the Mayor of Ukwa West LGA, Mr. Newman Azu, said that for the past six years, the company, a conglomerate of five companies with the sixth about to be set-up, has not paid a dime to the Ukwa West Local Government Council, adding that fundamental issues like pollution involving the company has been of utmost concern.

“The only waterway of the local communities around there is being polluted on a daily basis, directly from the activities of Inner Galaxy Steel Company,” he said.

Responding, the Managing Director of the company, Mr Hongming Zhang, said that staff welfare has remained a top priority in the company, which, he said, ensures that it transacts its business in line with international best practices.

“We have a record of the amount we pay our workers and it varies from N60, 000 to N500, 000 which is dependent on the job each staff performs,” Zhang explained, adding: “We provide accommodations for the staff that live in the compound and we have our canteen where staff can get food from, using the meal tickets given to them by the company.”

“The company does not delight in firing people because it costs the company money to train workers to get the required expertise for the job,” he disclosed.

Zhang also promised that the company would make serious efforts to improve on its engagements with the host community and as well, meet its demands.