•Firm: we had no job to execute
A law firm, Falana & Falana’s Chambers, has asked chairman of Chrome Group, Sir Emeka Offor, to pay his workers who are owed over N1.1billion.
In an August 16 letter on behalf of staff of Chrome Group, the firm demanded the immediate payment of all their outstanding salaries.
It also asked for the remittance of all statutory deductions from their salaries since July 2015.
The law firm said its clients comprise “all the staff of Chrome Group and others associated with it nationwide” whose salaries and emoluments have not been paid by Offor.
“Our clients’ brief is that since July 2015 till date, you (Offor) willfully refused to pay their salaries and entitlements, remit their pension deductions and contributions to their pension administrators, and refused to remit the PAYE taxes deducted to the tax authorities.
“They have also worked for your companies without you providing the mandatory healthcare insurance as required by the National Health Insurance Act till date,” the letter reads.
According to the letter signed by Samuel Ogala of Falana & Falana’s Chambers, efforts to resolve the issues peacefully have been unsuccessful.
The firm accused Offor of breaching resolutions reached towards clearing the arrears.
“Our clients made several representations to your good self to amicably resolve these issues but you have consistently breached all resolutions jointly agreed between you and them to pay their outstanding salaries and remittance of their statutory deductions to the appropriate government agencies.
“Your actions further contravene all known labour laws and is termed as an unfair labour practice and has put our clients and their families under a degrading condition as they can no longer pay their bills and earn a decent living even though they work day and night to keep your business afloat.
“Our clients’ right to their wages having worked for your companies is non-negotiable and as such they are entitled to be paid all outstanding salaries and allowances being owed them in full,” the firm said.
The workers are demanding that N1,139,806,054.94, being their outstanding salaries and wages between September 2015 and August this year, be paid them forthwith.
They also asked that all pension deductions and contributions outstanding to them from July 2015 to August 31 amounting to N244,172,464.80 be remitted to the pension fund administrators.
The workers want Pay as You Earn (PAYE) deducted from staff payroll from July 2015 to August 2017, amounting to N153,775,382.58, to be remitted to the states/Federal Capital Territory (FCT) Internal Revenue Board.
They further demanded that N579,219,429.58, being their disengagement benefits as at August 3, be paid to their bank accounts.
“We demand that you take immediate steps within seven days of the receipt of this letter to act on it and meet our clients’ demands.
“We have their instruction to commence a legal action against you and your companies and also petition you to the various government agencies whose laws you have consistently breached by failing to remit the deducted pension, PAYE and Health Insurance,” the firm wrote.
Billionaire businessman Offor, a leading Peoples Democratic Party (PDP) financier, is known for his interests in oil and gas, power and construction.
His company was awarded turnaround maintenance (TAM) contract to fix the refineries.
In the 1990s, his company got a contract for the 115,000 barrels per day (bpd) Warri Refinery and Petrochemicals Company in Delta State.
In 2014, the Goodluck Jonathan administration reportedly awarded Chrome Energy the TAM contract for both the old 60,000 bpd Port Harcourt and the 150,000 bpd new Port Harcourt refinery.
With the refineries not functioning optimally, some have criticised the TAM contracts.
Former President Olusegun Obasanjo accused Offor’s firm of lacking the capacity.
“What I met were refineries that were not working, refineries that were given to an amateur for repairs, for maintenance, what they call turn around maintenance to the company of Emeka Offor – Chrome Group
“Where has Emeka Offor maintained refineries before? Where has he? That’s what we met. So, the refineries were not working,” he said.
Former Petroleum Minister Mrs Diezani Alison-Madueke, three years ago, she was shocked at the extent of dilapidation of the refineries when she visited them on assumption of office as minister.
“To get a replacement for the equipment was not possible because they were obsolete. For over 20 years, the equipment were not changed or maintained,” she said.
Minister of State for Petroleum, Dr Ibe Kachikwu, while briefing the Senate Committee on Petroleum (Upstream) in March last year during fuel scarcity, said the non-performance of the refineries was due to alleged fraud and lack of holistic maintenance.
“We have also had issues of fraud. It got to a point where I started wondering whether as we repair this, somebody was going there to destroy, so that contracting will be done.
“Over the last 10 to 15 years, we have not done a serious, conclusive turnaround maintenance of these refineries; they are averagely 30 to 40 years old; the equipment are far dilapidated,” Kachikwu said.
Like several companies and businessmen who were prominent during the 16 years of PDP in power, Offor and his companies’ fortunes seem to have taken a hit.
Chrome Group’s Abuja office on 22 Lobito Crescent had been under lock, as admitted by Offor’s lawyer.
Employees of Offor’s other company, Global Scansystems Limited, who claim not to have been paid for two years, are said to have filed a suit at the National Industrial Court, demanding their payment.
‘Why we closed office’
Offor’s lawyer, Jeff Njikonye, blamed “the general economic meltdown and recession” as leading to a “halt” in Chrome Group’s businesses and closure of its office.
In an August 22 reply to Falana & Falana’s Chambers‘ letter, Njikonye described as “bogus” the claim that all the staff of Chrome Group and other companies associated with it were owed.
“This claim is bogus, presumptuous and is straightaway, repudiated,” the lawyer said.
He added: “The totality of your claims, allegations, inclusive of monetary claims and allegations of unfair labour practices and failure to make remittances are with respect, gold digging and grossly unsubstantiated. They are unequivocally repudiated.”
Njikonye, however, said Offor’s companies have had no jobs in recent times as to meet their financial obligations.
“Sequel to the general economic meltdown and recession, our client’s businesses suffered frustration commencing from March 2015 and grounded to a halt in September 2015.
“Consequently, out client had no job to execute and closed office starting from September 2015.
“It is reasonably inferable from the circumstances above that the contracts of employment of staff were consequentially discharged by frustration since office was closed and there was no job going on or tasks performed by staff.
“If our client’s businesses revive as our client hopes they will, our client will determine whom to re-engage as staff and on what terms and conditions such re-engagement will be,” Offor’s lawyer wrote.
Despite the financial challenges of Chrome Group and its subsidiaries, including Kastech Engineering Ltd, it was learnt that they were on bid list of major projects of Shell and the Nigerian National Petroleum Corporation (NNPC).
It was also learnt that Offor’s companies have also been included in the bid list of Bonga South West-Aparo field development project, a Shell project involving a Floating Production Storage and Offloading (FPSO) package.
Sources said the company pre-qualified for the project worth over $10 billion, as well as for an NNPC gas transmission project worth more than $1 billion.
Offor’s lawyer told Falana & Falana’s Chambers that the businessman would meet the workers in court should they choose to sue.
“With this insight, we hope you will guide whoever might have briefed you appropriately and desist from further malicious demands and comments as contained in your letter under reference.
“Be assured that our client is not perturbed by your threats of legal action and threatened report of our client to government agencies.
“We have our client’s full instructions to meet your case if you have the luxury of proceeding with your unsubstantiated cause,” Njikonye added.
