Invasion of Taiwanese rubber firm by Cross River Govt sparks concerns among investors

Last week Friday, the Cross River State Privatisation Council ordered armed security operatives to storm the Enghaut Industries Ltd, a rubber processing firm situated in the Uyangha area of Akamkpa LGA of the state.
The operatives and government officials allegedly carted away several tons of rubber and other equipment belonging to the company, according to sources in the firm.
The government has gone ahead to sack the management of the rubber firm, and announced a new managing director.
Justifying the action, a personnel in the state Ministry of Finance, who confided in this reporter, said that the invasion was overdue, accusing the firm of not carrying out Corporate Social Responsibility, CSR.
“They have not established schools, clinics; no scholarships, no impact of the firm on host communities at all. We cannot sit by and watch. The same action will be taken against such rubber and other firms who do not also discharge their obligations.
“Since the owner of the firm died, they began to move equipment to Sapele where they have another plantation.
“Since we lost our 76 oil wells to Akwa Ibom State, government wants to use every avenue to recoup revenues.”
Further findings revealed that the administration of Governor Bassey Otu had issued a warning in April 2024, claiming that the firm was owing the state government the sum of N178 million in respect of ground rent for 18 years.
The government announced that it will revoke the right of occupancy of the Taiwanese firm.
The development followed the report of a fact-finding committee which Otu set up to look into the activities of the firm whose owner, a Taiwanese, died some years ago after which the wife took charge.
Special Adviser on State Security to the Governor, retired Major General Okoi Ubi Obono, headed the fact-finding committee.
The committee had recommended the invocation of sections 1 and 28 of the Land Use Act of 1978 to enable government revoke the Right of Occupancy of the firm.
The committee also suggested that due process be followed in acquiring the company’s land, but where compensation was to be paid, the amount, N178 million should be deducted from the accumulated ground rent owed the state government by the firm.
Receiving the report, Otu had assured that appropriate action would be taken to address the situation.
Otu assured that his administration was committed to ensuring that the rich agricultural endowment of the state is developed and made to become the economic mainstay of the state.
However, an official of the rubber firm, who gave his name as Julius Abeng, contradicted the position of government, saying the company have performed its CSR obligations according to the law.
“We have done much in terms of investment only for the present state government of Governor Otu to wake up and publish a revocation of right of occupancy against the company when it is yet to reap the dividends of its investment.
“The business was established by the late Mr Bob Lin, a Taiwanese, whose wife manages presently.
“Following the unjustified occupancy right revocation, the company filed for an interim injunction against the state government which was granted on the 9th day of July, 2024.
“Before the grant of the injunction, agents of the government came to take over the estate on Friday, 5th July 2024, and on Monday, 8th July 2024, the same government agents came and carted away 53.8 metric tons of the company’s harvested natural rubber by force to an unknown destination.”
Meanwhile, in suit no HC/162/2024 between Enghuat Industries Ltd vs Attorney General of the state and CRS Privatisation Council, filed on 1st July 2024, the state high court presided over by Justice B. T. Ebuta, issued an order of interim injunction dated 9th July 2024, restraining the state government and its agents from entering the claimant’s property or tampering with the its assets.
Following the action of the state government, business owners, investors and rubber plantation owners in the state have expressed concerns about their own fates.
An investor, Sir Lawrence Akpan, expressed concern that the manner the government is clamping down on thriving industries by revoking their business rights has sent a wrong signal to existing and potential investors like him, who has hundreds of workers on their payroll.
He advised the government to rather encourage more investors to come in, and also lure those that fled to neighbouring states because of high taxations to return.
“Business environment was not very conducive for investors and manufacturers in the state and now the state government is clamping down on some industries that provides employment and contribute to IGR. It is scary. It has sent a wrong message.”
Invasion of Taiwanese rubber firm by Cross River Govt sparks concerns among investors