By Funmi  Komolafe  & Victor Ahiuma-young

Barely three days after our last publication on the issue of the failed housing project and the scam that attended it, thousands of federal civil servants besieged the Abuja head office of the Nigeria Labour Congress, NLC, demanding refunds of their deposits.

This edition of Labour Vanguard examines this issue with a view to highlighting the prospect of refund depositors.

NLC in its statement of September 22, 2014, said: “All funds deposited in the advertised NLC/Kriston-Lally account mentioned above are safe and secure. All depositors into that account can be rest assured that their funds are safe”.

The labour centre added: “We are also working with relevant agencies to explore ways of ensuring that subscribers who have been manipulated into paying into other accounts are protected”.

International institutions

Kriston-Lally, stating its side of the story in a statement by the firm’s boss, Alhaji Madawaki said: “The financing of the project was also put in difficulty due to the fact that land had not been secured.

We could not get finance from any Nigerian or international institutions until the land was fully secured and approval for construction was granted. We lost face with such partners due to the failure of the NLC to provide the land.   However, after much persuasion, new financiers were found and they too agreed to go ahead but similarly insisted on the availability of land.

The NLC had also actively supported one financing strategy referred to as Bank guarantee counterpart funding as suggested by our group which I also found to be attractive. However, I stopped it even after the NLC had given full go-ahead and performed their due diligence on a fact-finding mission to Europe where they met with technical partners and a specific financial group.

Upon return, NLC gave approval for the Bank Guarantee to be issued. Both the bank, Access Bank and my international adviser concurred with me that an unconditional bank guarantee is unsafe and advised that apprehensions about the safety of such a contract were seriously justified and they advised not to proceed. I single-handedly stopped the BG and cancelled it until the financiers accepted a condition BG”.

Depositors fate

Alhaji Madawaki asked rhetorically: “Who then protected the workers funds to the tune of N1.8billion? Me or the NLC? Supporting documents are available. No scam company or individual would do that. Conversely, NLC never mentioned that.”

Addressing protesting depositors in Abuja about two weeks ago, NLC President , Abdulwaheed Omar assured them their deposits would be refunded.

This is not so different from what Kriston-Lally’s boss in Nigeria, Alhaji Madawaki   said in his press statement of September 27, 2014 .

Alhaji Madawaki gave his assurance with a warning: “All money lodged by depositors will be returned to them. This process has already begun and of the 3,270 depositors, about 200 have already received refund of their deposits.”

His warning: “We are not going to allow NLC transfer subscribers’ money to another developer with a different philosophy and objective whose costs are not worker-friendly and may not even have the requisite funding, whether local or international to complete the project.”

How to get a refund

The company added: “Subscribers can apply for a direct refund from Kriston-Lally and if they themselves decide later, they can join any developer of their choice.”

It warned that it could take legal action against the leadership of the NLC.

“ Kriston- Lally is preparing legal action against the NLC for the reimbursement of all costs, money invested by Kriston-Lally shareholders and stakeholders in the project, plus damages. Basically, Kriston-Lally worked and spent money and energy preparing to construct, but the NLC never provided a plot of land and apparently had no intention or ability to do so. The NLC basically scammed us, either as part of one of their political games or so that certain NLC leaders could benefit personally from the project”.

Concluding its side of the story, Alhaji Madawaki, speaking for Kriston-Lally said, “Kriston Lally has various partners, stakeholders to whom money is due for services rendered while trying to realize the project and while waiting for the NLC to provide the land plots. Kriston-Lally has every intention of paying all money that is due from us to each and every party.     Part of this will form our legal case against NLC”.

Labour Vanguard contacted the General Secretary of the NLC, Dr. Peter Ozo- Eson, who denied that there as a scam.   On September 21, there was an exchange of SMS between us and the NLC scribe.

Labour Vanguard: “Why is NLC shying away from EFCC?” since the issue involves such a huge amount of money and in view of the protest by workers.”

NLC Scribe: “By the way, where was the protest ? And who says we are shying away from   EFCC? Why don’t you wait for the advertorial?

(The protest referred to was the first protest by workers on this issue. )

Labour Vanguard: “ It was at Labour House and some NAC members have confirmed this. Thanks for your reply.”

Clearly the housing project has failed. So, what next?   Simply a refund. With or without interest ?