A row is brewing between Zambia and Dangote Cement, a major employer
in Africa's second largest copper producer, after a government
minister accused an executive at the local unit of the Nigerian
company of attempting to bribe him.
The dispute appears to be the latest in a string of incidents in which
the southern African nation's government has resorted to strong-arm or
unorthodox tactics against foreign investors it believes are
circumventing labour laws.
Dangote Industries Zambia has 400 workers building a $400m cement
plant, a staff count that should rise to 2,000 when production starts
in November, deputy industry minister, Miles Sampa, toldReuters.
During a tour of the plant in Ndola, 300km (188 miles) north of the
capital, Lusaka, labour minister, Fackson Shamenda, said a Nigerian
executive seconded to the Zambian unit tried to bribe him at a hotel a
week ago.
The company described 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.
Shamenda did not specify what was offered by the executive and said he
rejected it because he had critical labour issues to sort out with the
company - owned by Nigerian Aliko Dangote, Africa's richest man - and
did not want to be compromised.
"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, according to local media
reports.
Shamenda also said DIZ should offer workers at the company permanent
employment and allow them to join unions.
Shamenda toldReuterson Tuesday, "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 said in its statement that Shamenda had made four surprise visits
to the cement plant in the last four months, prompting the company to
complain about his conduct as it felt that 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.
A year ago, Zambia revoked the work permit of the chief executive of
Konkola Copper Mines, owned by London-listed Vedanta Resources, and
threatened to rip up its mining licence when the firm announced plans
to lay off 1,500 workers.
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