Workers Protest Factory Closure, Beg AMCON

The workers of Multi-Trex Integrated Foods Plc, an agro-allied company, say the closure of the factory by the Asset Management Corporation of Nigeria is affecting their well-being as the management is unable to pay their salaries.

They appealed to AMCON to re-open the factory in a peaceful protest held on Tuesday outside the company premises on Kilometre 29, Lagos-Ibadan Expressway, Warewa, Ogun State.

The workers said they were ready to work so that the firm could pay the loan it owned AMCON, as well as their 11-month salary arrears.

The protesters, who displayed placards, lamented that the closure had brought hardship to them and their families.

The placards read, ‘AMCON please settle with our management and save our posterity’, ‘Save our families from hunger and increasing debt’, ‘We are willing to work, AMCON please reopen our factory,’ among others.

PUNCH Metro learnt that AMCON shut down the company on June 26 following non-payment of a loan obtained by the company.

It was gathered that the corporation in 2011 bought the loan from the Skye Bank Plc, which had given it to the company.

Our correspondent learnt that the measure, which was said to be in line with the directive of the Central Bank of Nigeria, had denied Multi-Trex of accessing loan from other banks to continue with its operation.

The acting finance head of the firm, Mr. David Obijole, however, said the company was still servicing the loan when AMCON bought it.

He appealed to the corporation to allow for dialogues between it and the management of Multi-Trex to enable the factory to re-commence production so that it could repay the loan.

He said, “AMCON was supposed to buy non-performing loans from banks. But our company’s loan was still performing when AMCON bought it over from the Skye Bank Plc.

“One of the challenges now is that we need working capital which some banks are willing to give us, but for the restriction by CBN which bars any bank owing AMCON above N5m from accessing loan from local banks.

“We have foreign investors who are ready to pay AMCON and invest in cocoa that we produce in our company, but the closure is discouraging them. Since the government is clamouring for diversified economy, especially through agricultural sector, we urge the corporation to give us a consideration and reopen the factory for normal production to commence.”

The Head, Human Capital and Administration Services, Mrs. Mobola Sanya, said no fewer than 200 workers had been retrenched, while 50 others had to go on compulsory leave because of the closure.

She said, “The company has been handicapped since 2011 when AMCON bought over our loan facility.

“The company has not been able to access working capital thereby unable to pay back the debt it is owing AMCON. This has led to mass retrenchment of over 200 workers of the company and 50 other employess have been sent on compulsory leave without pay.

“About 70 staff members have not been paid salaries for 11 months. This has brought hardship to the affected workers and their numerous dependants with attendant loss of revenue to the country through export and foreign exchange generation.”