Dangote In Trouble With Zambian Government (See Why)

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Zambia Govt and Dangote Cement are now locked in an uncomfortable situation after a Zambian minister accused the Nigerian company of attempting to bribe him. This recent dispute is said to be latest in a string of events which has seen Zambia start to strong arm foreign investors it believes are circumventing labour laws. Dangote Industries employs around 400 workers in zambia and by November the figure is expected to increase to 2000 after they built a $400m cement plant.

It is said that the bribe occurred during the a tour of the plant in Ndola, 300km (188 miles) north of the capital, Lusaka. Labour minister Fackson Shamenda said that Dangote officials attempted to bribe him in their hotel. Dangote cement has however come out and said that the allegations as “malicious misinformation.”

“For the record, DIZ categorically deny any claims of corruption and bribery, and reserve our rights on this matter,” it said in a statement.

“He told me that it was a tradition in their culture to give someone a token of appreciation. Maybe his idea was that I turn a blind eye to what is happening at Dangote,” Shamenda said.

“There is no union, and according to the reports I have received, those who have attempted to join unions have had their contracts terminated.

“I have asked the labour commissioner to investigate and tell me all the categories of employees, because the reports we have received indicate there are no permanent employees.”

DIZ however complained about the minister’s frequent surprise visits to the plant, saying in the last four months the minster had come four times. They said the minister was deliberately looking for wrongdoing.

“DIZ was beginning to feel harassed and unwelcome in Zambia, and immediately brought this to the attention of the Ministry of Commerce, Trade and Industry,” it said in the statement.

Last year, Zambia had revoked Konkola Copper Mines, owned by London-listed Vedanta Resources work permit after the firm threatened to lay off 1500 workers.

Punch

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