Governor Otti tasks Inner Galaxy on contributing to socioeconomic growth of host community, threatens sanctions on non compliance to government directives

Abia state Governor, Dr. Alex Otti has charged Inner Galaxy Steel Company, a Chinese firm operating in Abia State to evolve initiatives that can contribute positively to the socioeconomic growth of the host communities and the State in extension.

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

This followed a petition written by the Traditional Rulers Council of Ukwa West to the Governor against the company, which is sited in Umuahala-Obuzor, Ukwa West LGA, alleging acts of employees abuse and non-performance of corporate social responsibility by the company.

The Governor said that the matter involving the company showed that there was no good communication between the company and the host communities.

“Successful companies set up a host relations department, some people call it community relations, who 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 stated.

He urged the management of the company to conduct an internal audit to find out the exact amount their staff are being paid to address the issues being raised about the minimum wage it pays.

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

He however said 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 cooperate social responsibility and paying taxes accordingly.

The Governor stated 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 called for a meeting to give fair hearing to all the parties involved but warned that he would not tolerate any form of disrespect to government directives. According to the Governor, “The reality is that, if the government gives an instructions and it is not carried out, I will shutdown the place”.

“I don’t joke, but I follow due process and this is the due process that we are following, by saying that the Mayor should coordinate periodic meetings between the company and the host communities.

“The issues raised must be discussed in the 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”.

“Somebody was trying to pollute the waterway in Umuahia, I shut down the company and everything until they complied:.

“The first thing to do is to listen to people and then give them room. So, you assume that everybody is innocent until they prove themselves guilty”.

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

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 said that there were reports that the company uses the security agents attached to the company to harass the members of the host community and he charged the company to desist from encouraging such acts.

Governor Otti further 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”.

“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 concluded.

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

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

According to Eze Dike, “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”.

“If you 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 and created an entirely new access road for themselves”.

He said that the community had written several letters to the company for dialogue but all the letters had been ignored by the company.

The royal father further said that the decision to come to Gov. Otti was informed by the fact that he has the capacity to address the issue between the company and the community,

Also, the Mayor of Ukwa West LGA, Mr. Newman Azu said that for the past six years, the company which is a conglomerate of five companies with the sixth one about to be set-up, had not paid a dime to the Ukwa West Local Government Council.

He added 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.

In his response, the Managing Director of the company, Mr Hongming Zhang said that staff welfare had remained a top priority in the company and the company ensures that it transacts it 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”.

“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 stated.

He said that the company would make serious efforts to meet the demands of the community and improve its engagements with the host community. The meeting was attended by some members of the State Executive Council and other Governor’s appointees.

Ctz. Ukoha Njoku Ukoha
Chief Press Secretary to the Executive Governor.
17-07-2024.