Gov Otti Tasks Inner Galaxy Company, Threatens Sanctions Over Non-Compliance With Government Directives

Dr Alex Otti, Governor of Abia State, has directed Inner Galaxy Steel Company, a Chinese firm operating in Abia State, to develop initiatives that will benefit the socio-economic growth of the host communities and, by extension, the state.

Governor IOtti spoke at a meeting with Inner Galaxy Steel Company management and the Ukwa West Traditional Rulers Council at the Governor’s residence.

According to Ukoha Njoku Ukoha, Chief Press Secretary to the Governor, this comes after the Traditional Rulers Council of Ukwa West petitioned the Governor against the company, which is based in Umuahala-Obuzor, Ukwa West LGA, alleging employee abuse and non-performance of corporate social responsibility by the company.

The Governor stated that the incident involving the company demonstrated a lack of good communication between the company and the host communities.

“Successful companies establish a host relations department, also known as community relations, which serves as the liaison between the company and the host community.”

“It is not good to report that you have not met with the leadership of your host community and that if they write you letters, you ignore them.”

“The truth is that you cannot exist unless the community is present. If the community is in turmoil, your business will be in turmoil, regardless of how many security agencies you surround yourself with.” Governor Otti declared.

He urged the company’s management to conduct an internal audit to determine the exact amount paid to their employees to address concerns about the minimum wage.

The Governor stated that the government’s resolve to broker peace between the company and the host community was based on its desire to encourage business in the state.

He did, however, state that the company’s continued operation in Abia would be contingent on its good behaviour and compliance with the rules, respect for the host community, carrying out its social responsibility, and paying taxes as required.

The Governor stated that under his watch, the Abia State Government would not tolerate any form of noncompliance with government directives.

The Governor stated that the government follows due process in all matters and called for a meeting to provide a fair hearing to all parties involved, but warned that he would not tolerate any disrespect for government directives. According to the Governor, “The reality is that, if the government gives an instruction and it is not followed, I will shut down the facility.”

“I do not joke, but I follow due process, and this is what we are doing by requesting that the Mayor coordinate periodic meetings between the company and the host communities.

“The issues raised must be addressed during the meetings, and all parties must comply. If they do not comply, I will get out the big stick and nothing will happen.”

“I am confident they have seen our government. It is a very serious-minded government. We do not cut corners, so do what you are supposed to do.”

“Someone was attempting to pollute the waterway in Umuahia, so I shut down the company and everything until they complied.

“The first step is to listen to others and then give them room. So you assume that everyone is innocent until proven guilty.

“We cannot pass a guilty verdict without giving them a fair hearing. “I will not even tolerate it.”

He encouraged the company to be a good corporate citizen by engaging in activities that benefit the host community.

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

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

He stated that there have been reports that the company uses its security agents to harass members of the host community, and he urged the company to stop encouraging such behaviour.

Governor Otti also urged the company’s management to make concerted efforts to improve its image, as the company rarely receives positive feedback from the public.

“This is my second meeting with you, and the first time, I told you that your name is not good because it does not elicit positive responses from people.”

“It means something is wrong, and to add insult to injury, your staff is now involved in this one, which I will not discuss because it is still in court.”

“While you may not accept responsibility as a company because any individual who commits a crime accepts responsibility for the crime, it’s not a pleasant scene.” The Governor concluded.

Governor Otti urged the company to hold quarterly meetings with the host community to improve the company’s engagement with the community. He directed the Mayor of Ukwa West LGA, Mr Newman Azu, to coordinate the meetings and ensure that reports from the meetings were made available to him.

In his remarks, Eze Augustine Dike, Chairman of the Ukwa West Traditional Rulers Council, stated that the council had received reports that the company mistreats its employees and that the community had not seen any developmental benefits from the company.

According to Eze Dike, “There are employees who are supposed to earn N30,000 but only receive N15,000 at the end of the month.”

“If you use the convenience, the company will charge you, and the company does not have a healthy relationship with the host community and has done nothing for the community.”

“They were using the Umuahala Road that leads to their company, but when it became impassable, they abandoned it and built a completely new access road for themselves.”

He stated that the community had sent several letters to the company requesting dialogue, but all of the letters had been ignored by the company.

The royal father went on to say that the decision to approach Gov. Otti was informed by his ability to address the issue between the company and the community.

Also, Mr Newman Azu, Mayor of Ukwa West LGA, stated that for the past six years, the company, which is a conglomerate of five companies with a sixth about to be established, has not paid a dime to the Ukwa West Local Government Council.

He also stated that fundamental issues such as pollution involving the company have been of great concern.

“The only waterway in the surrounding communities is polluted daily as a direct result of Inner Galaxy Steel Company’s activities.” He said.

In response, the company’s Managing Director, Mr Hongming Zhang, stated that employee welfare has always been a top priority for the company, and the company ensures that it conducts business under international best practices.

“We have a record of how much we pay our employees, which ranges from N60,000 to N500,000 depending on the job they perform.

“We provide accommodations for the staff who live on the compound, and we have a canteen where employees can get food using the meal tickets provided by the company.

“The company does not enjoy firing people because it costs money to train employees to gain the necessary skills for the job,” he stated.

He stated that the company would make significant efforts to meet the needs of the community and improve its interactions with the host community. Several members of the State Executive Council and other Governor’s appointees attended the meeting.