Community Leaders Move to Castrate Mimiko’s Firm, Francisca Muinat Ltd in Ondo

Pat Stephens/

Moves are on in Ondo State to end the operations of a crisis-ridden mining and quarry company, Francisca Muinat Limited, jointly established by a former governor of Ondo State, Dr Olusegun Rahman Mimiko and some partners while he was in office.

The quarry, which is being run by the ex-governor’s younger brother, Dr Olubansile Abass Mimiko, found itself between a rock and a hard place amid management crisis as community leaders move to end its operations over alleged degradation of ltale Aaye Community in Ifedore Local Government Area of Ondo State where the firm is sited. It is alleged that each time rock is blasted with the aid of explosives, splinter rocks fly around causing one damage or another to houses within the environment. This is a regular occurrence.

Mimiko was Ondo State governor from February 24, 2009 till February 24, 2017.

NewsmakersNG had earlier reported some internal crisis at Francisca Muinat Ltd following the death of workers at the quarry, where employees were allegedly not being paid.

The employees had blamed the management for the death of a sick staff who was denied N20, 000 support for hospital treatment even though the thriving company owed him six months’ salary, and up till now, the staff are still being owed.

They also blamed Olubansile for stoking the fire within and outside the company where some partners were reportedly hedged out or shortchanged in business dealings and landowners have engaged lawyers to battle the firm over what they described as untold environmental hardship on residents of the host and neighboring communities.

NewsmakersNG learnt from the lawyers representing the community leaders in Ifedore – the Olu Itale Aaye, Chief Fabiyi Adedayo and Prince Peter Adeleye that they have written the Director-General, Federal Ministry of Mines and Steel in Abuja to revoke the license of Francisca Muinat Ltd over environmental degradation.

The lawyers have also written to inform the firm that its tenancy on the site would not be renewed after its expiration this month.

According to a petition from the lawyers at S.O. Abitogun & Co, Legal Practitioners and Consultants, on Fabunmi Street, Oshinle Quarters, Akure, the Ondo State capital, residential buildings are almost being pulled down in the communities.

They told NewsmakersNG how the community has been buffeted by misfortunes due to the mining activities at the site of Francisca Muinat Ltd.

A little fire, as the saying goes, is quickly trodden out. But Francisca Muinat Ltd appears to be facing a conflagration.

Following NewsmakersNG investigations at the CAC in Abuja, the directors and shareholders of the company were unveiled. Among them is a Lagos-based ex-banker, Mr Bamidele Iluyomade, whose mother’s name and that of Mimiko’s mother were used to coin the company’s name – Francisca Muinat.

When he was contacted on phone, Mr Iluyomade confirmed his association, but he said that he would get in touch. As at the time of going to the press, he has not gotten in touch with NewsmakersNG.

The company, according to some insiders, was making huge revenue until the Chinese partners running the business were dramatically kicked out. The Chinese brought their equipment and built the factory with the offices. But, in just one day, 11 of them were arrested, handcuffed, driven to the airport, and deported to their country. Thereafter, Olubansile took charge and crisis allegedly set in as a new Managing Director, Biodun Ajao, was installed.

During that period, a huge amount of proceeds was allegedly unaccounted for.

When contacted, a representative of the Chinese partners who were sent away described the Nigerian partners as dubious. He said, “They used our equipment for four years and are still using them. They used state machinery to drive us out, using the immigration, after we have made a success of the business.”

Investigations further revealed that the Spanish partners were also kicked out after they brought in their equipment which they were forced to leave behind. The Spanish partners were brought into the joint venture by a popular Ikare Prince resident in Spain.

“Olabansile has stopped going to the quarry since the problems with the community started, but he gets the sales proceeds on a daily basis through his personal assistant who is his alter ego and harbor part of the company’s sales proceeds in his private account also,” one of the workers said.

According to an insider, Olubansile is now trying to engage a new Managing Director.

She said, “There’s a Professor that he is trying to put there as a stooge. A visiting Professor in the University of Namibia. He wants him to come and take over the place. He has also been calling the Chinese he sent away. He’s been finding ways to curry their favor to come back. The splinter group of the Chinese people who are still in Ondo State; he’s been bringing them to the site, to come and run the place for him.

“The professor’s mistress has been on two different occasions brought to manage the place but hedged out on the two occasions.”

Olabansile allegedly lobbied to be made a deputy governorship contestant in one of the frontline parties in Ondo State, and had invested reasonable amount of the company’s sales proceeds “which he has defiantly been crediting to his personal account”.

They said that because the deputy governor’s slot has failed, he has resorted to going back to the landowners and people he had bluffed to beg so that the decision to remove the quarry from their land could be rescinded.

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