At least 200 workers of Capital Oil and Gas Industries Limited have been sacked since the Asset Management Corporation of Nigeria (AMCON) took over the management of the company.
It would be recalled that recently, AMCON took over the management of the indigenous downstream player for a two years.
It explained that the takeover became necessary after AMCON acquired Capital Oil and Gas’ outstanding facilities from various banks. The Managing Director, AMCON, Mr. Mustafa Chike-Obi, had put Capital Oil and Gas’ total indebtedness at N65bn as of December 2012.
The corporation during the takeover had said: “Following discussions with COG, a resolution was reached, which was subsequently adopted as terms of settlement in suit number FHC/ABJ/CS/714/2012 at the Federal High Court. One of the key conditions of this settlement is that AMCON takes over executive management of the COG for a period of two years.
“Dr. Patrick Ifeanyi Ubah, the erstwhile Managing Director/Chief Executive Officer, has consequently relinquished his role as head of the organisation. In the interim, AMCON has appointed an acting managing director to ensure accountability and continuity of operations.”
Daily Review Online gathered that the sacking of the workers became necessary as the company was believed to be having a bloated staff.
“When AMCON came it discovered that the company was having too many people on its list of workers. These people were actually not doing anything. They were employed indiscriminately by Mr. Ubah. He employed people based on emotions and was giving them big cars as he employed them. He did not follow due process in their employment,” our source said.
Those relieved of their positions were middle cadre and top management workers. Low cadre workers were not affected. “The company was top heavy. Millions of naira was being spent on what could be described as ghost workers.”
However, there was a drama at the point of disengagement of the workers. “While AMCON insisted on paying the sacked workers their full benefits, Ifeanyi Ubah insisted on paying them by himself. AMCON had to bulge”.
However, Ubah was said to have short-changed some of the workers when he insisted on deducting personal loans and other allowances advanced to some of the sacked workers before paying them off.
Meanwhile, the Labour Party has endorsed Ubah as its candidate in the Nov. 16 Anambra governorship poll while Dr Emeka Eze emerged as his running mate.
The party made its position known in a communique issued at the end of its 16th National Executive Council (NEC) meeting in Abuja on Sunday.
The National Chairman of the party, Mr. Dan Nwanyawu, and the National Secretary, Mr. A. Salam signed the communiqué.
The meeting also resolved to extensively mobilise the people of Anambra to support the party’s candidate.