Human Rights Community Petitions AKSG Over Sunshine Batteries … Reveals Shoddy Deals In The Sales Of the Company

By UbongAbasi Ise

The circumstances surrounding the sale of the Sunshine Batteries Limited to BEKO International have come to the fore having received the attention from the Akwa Ibom Human Rights Community following the Akwa Ibom State Government’s indifference to the plight of the former staffers.

Speaking with our Correspondent over the weekend, Clifford Thomas, Esq. who is the lead Counsel for the former workers noted that a letter was sent to the executive governor of Akwa Ibom State on the 3rd of October, 2017, making certain urgent prayers to the governor, to wit, that the governor should review the circumstances of the sale, and ensure that it complies with the due process of the law.

The governor, according to Mr. Thomas, who is a well-known human rights activist, “has not replied the letter, or even acknowledged receiving same. This insensitivity is what often puts unnecessary pressure on government, and making it look like some people do not like the government. Our governments must be responsive to the needs and demands of the people.”

In the letter which was titled, “SUNSHINE BATTERIES AND ISSUES THEREIN: MATTERS ARISING,” the workers made the prayers for the payment of all outstanding and allowances at current government-approved rates from July, 1993 – September, 1997, which is a period of 51 months; Payment of all outstanding National Pensions Fund (NPF) (5%) contributions and contributory pensions’ scheme (10%) from August 1985 to September, 1997; Payment of terminal entitlements/benefits at current government rates (1985 – 1997); Payment of other severance compensations and benefits on Workmen’s compensation, hazard insurance, etc; The re-engagement of interested staff of Sunshine Batteries Limited, Ukana, Akwa Ibom State, who have the requisite skills, qualifications and capacity, by the new company; Compliance with international best practice in matters of this nature where government sells off a company with staff attached to the former company, taking into particular consideration, the interest and welfare of staff of the former company.

Aside the transaction being shrouded in secrecy, the interest of the human component of the premier Batteries Company in the former Cross River State, whose salaries and emoluments had not been paid for several years before it was questionably sold to a private firm which went ahead to dismantle components of the factory and sold same off at a conservative sum allegedly put at over Four Hundred Million Naira (N400,000,000) scrap rate of functional factory machines that were still producing.

The Akwa Ibom Human Rights Community notes regrettably that, this company did not only employ indigenes of the State, but was building capacities for the industrialization of the State, and some of the former staffers of the company are now using acquired knowledge from their previous work experience to help sectors that are today deficient.

In his words, Mr. Thomas who is the State Chairman of the Civil Liberties Organization (CLO), and the Secretary of the Human Rights Committee of the Nigerian Bar Association (NBA), Uyo Branch, “upon the establishment of the Sunshine Batteries by the then Cross River State Government and commencement of operations in 1985, Our Clients (including deceased staff members whose dependents are herein captured) were employed at various times to meet the manpower need of the company. And by September, 1987 when Akwa Ibom State was created from Cross River State, the shares of the company became that of Akwa Ibom State. Employment of Our Clients and every condition thereto were premised upon the Workers’/ Employees’ Handbook issued to them upon their employment.

“This company was a very viable limited liability company which was incorporated in 1981, commissioned in 1984, and commenced operations in 1985. It had an installed capacity of about 1 million units of batteries per annum, and the State Government had controlling shares in equity. This company’s contributions to the Gross Domestic Product and overall economy, helped in employment generation, downstream and upstream improvement of lives, and the economy generally.

“Evidence suggests that five hundred (500) persons or thereabout were employed at the early stage of the company. Under-capitalization of other factors affected production. This challenge that affected production was in no way caused by the staff. As at 1995, there were 191 workers left in the company; and they had not been paid salaries for 27 months. No disengagement letters were issued, and these persons remained staff of Sunshine Batteries. The staff were very hopeful that there will be improvement, particularly since the government had set up a committee to look into the problems therein. The committee’s report was submitted in 1995, and some of the recommendations were approved by the then Military Administrator of the State, but the expected White Paper that should ordinarily give life to the approved recommendations had yet to be made public when the government in 2014 sold off the company to BEKO International, the new investor.

“There was no meeting with the staff of Sunshine Batteries to discuss their fate when the new company took over the facilities and premises of Sunshine Batteries. Machineries worth over Three Hundred and Fifty Million Naira (N350,000,000) were dismantled and sold by this new company. The various partitioning, wares and facilities within the company have since been dismantled and sold off without taking the welfare, salaries, emoluments and interests of the personnel of Sunshine Batteries into consideration.

“This company enjoyed the controlling powers of the Akwa Ibom State Government until it was sold off to a private investor without taking into consideration, the welfare of the personnel of the company. It is pertinent to ask some questions here. Has this company been officially liquidated by the government and sold off to a private investor? What processes were followed in the liquidation exercise, and was due process of law as required followed? How much was Sunshine Batteries (goodwill, machineries, buildings, land, appurtenances and other assets) sold for? Who bought the company, and for how much? What is the status of the new owner (technical partner, financial investor, capacity to produce batteries to meet the object of the company, capacity to continue with the staff, etc.)? There are several questions begging for answers. Honest and sincere answers in this regard will help the good people of Akwa Ibom State, the staff of SUNSHINE Batteries, and the government of Akwa Ibom State.”

Mr. Thomas insists on knowing why the case of the former staff of Sunshine Batteries should be different from other state-owned companies or companies where State government equity participation was high or the majority in terms share ownership.

“For instance, similar companies where the state government had vested interest with controlling share and equity participation, due process was followed, capturing the interest and welfare of staff of the companies. Champion Breweries Limited and Plasto Crown Limited which are now publicly quoted companies are very good examples of how the Akwa Ibom State Government helped in reviving and revamping state-owned companies. Sunshine Batteries Limited should not be different.”

Source: The Sensor Newspaper