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FEBRUARY 5, 2007 VOL. 20. NO 17

Return of Expatriate MDs’

**Bunmi Oni, former MD, Cadbury: Replaced by an expatriate.**

Two recent appointments – those of Wallace Garland at Cadbury Nigeria Plc and Michiel Herkemij in Nigerian Breweries (NB), respectively – signal a gradual but steady take-over of bluechips companies by expatriates
By Udo Onyeka
Perhaps, parent organisations of bluechips companies in Nigeria have resolved to take over control of such companies wherein they have substantial investments, if indications of what happened in Nigerian Breweries (NB) Plc, and Cadbury Nigeria Plc, recently – where Festus Odimegwu and Bunmi Oni, former managing directors of the above -mentioned companies were removed and replaced by expatriates are anything to go by.
In the case of Odimegwu, many stakeholders, especially the company’s shareholders have been left wondering why Heineken Group, a Dutch conglonerate which controls a major stock in NB Plc, did not replace him with a Nigerian, since there are qualified and experienced Nigerians that could take up the job.
Odimegwu’s removal, instructively, was at the behest of majority of the shareholders, who at the company, last Annual General Meeting in Lagos, cynically called on the Board to remove the brilliant brewer, so that he could concentrate on his campaign for the elongation of the tenure of Chief Olusegun Obasanjo.
Odimegwu had at several fora lampooned cynics of Obasanjo’s economic achievements as ingrates. To him, it was only a foolish man that would contend that the Nigerian economy has not recorded considerable improvement during the Obasnajo administration.
When Odimegwu was relieved of his position, however, there were Nigerians abroad, The Source leant, warming up to be appointed into the position, and one or two of them were heavily supported by shareholders and stakeholders.
For instance, The Source gathered that the first on the list of favoured candidates was Dr. O.O. Ajayi, director, Customer Service of the company. A thorough- bred professional, Ajayi joined NB Plc in 1989, and has served the Heineken group in many countries across Africa and beyond. In 2004, he returned to Nigeria Breweries Plc as Head, Customer Service and was appointed Customer Service Director in April 2005.
Others, The Source gathered, were D.O. Esiekpe, Commercial Excellence Director, and E.E. Imoagene, Human Resource Director.
It was gathered that Ajayi, had already got the support of majority of the board members of NB, at a meeting convened to concretise plans for the approval of their candidate by the parent body.
The announcement of Paul Hamers, a non- Executive director, as acting MD, therefore, came to the board and shareholders of the company as a surprise. Even then, there was still hope that a Nigerian would be named the substantive MD, but it was not to be as Heineken Group eventually appointed Michiel Herkemij, former managing director, West African Milk Company Plc (WAMCO) as new head of the company.
For Chief Sunny Nwosu, president, Independent shareholders Association, the appointment of Herkemij to head NB was not needful when there were competent persons in the company.
Nwosu: “What I am saying is that there were competent hands that would have assumed the position. For one thing, it would have given room for continuity. One fact I want to make clear– and shareholders know – is that however you look at it, Festus Odimegwu has lifted the company to a greater height that he met it.”
Apart from the NB case, some industry watchers believe that what happened in Cadbury Nigeria Plc, is being exaggerated to nail Oni and thus foreclose any attempt by another Nigerian to occupy the position, at least for now. Some of them allege “ a deliberate attempt by Cadbury Schweppes to paint Cadbury Nigeria black in furtherance of its quest for a firmer grip of the company.”
If not, they argue, how reliable is Price Waterhouse Coopers’ report and why has Cadbury Nigeria and Cadbury Schweppes remained silent over the role of Akintola Williams Delloitte, or any other person(s) or firm that were used in perpetrating the alleged fraud? They also query why Cadbury Schweppes would chose an expatriate, Wallace Garland to replace Bumni Oni when there were many Nigerians that could occupy the position.
Also at WAMCO, where Herkemij was moved from, there were capable and tested Nigerians and yet the Parent Group decided to appoint his replacement from the Netherlands.
Perhaps, in the near future, Nigerians may witness more companies bringing in expatriates as MD’s apparently because the enabling environment are been created by the present administration.
Already at Guinness Nigeria, an expatriate, KRM Taylor, calls the shot, and like in NB where Heineken has a 54.1 per cent equity interest, Guinness International Dublin, Republic of Ireland, owns substantial percent of the shares of Guinness Nigeria.
At Nestle Nigeria, which is a part of the Nestle Group, the impressive result performance of the company in Nigeria has made it occupy a vital position among the subsidiaries of the Nestle Group, hence its board is filled with expatriates.
For instance, the Board made up of 10 directors, has only Chief Olusegun Osunkeye, chairman, and David Ifezulike as Nigerians. Others are foreigners, from France and Switzerland, with Kalus. P. Wachsmuth, a German as the managing director.
Nestle Nigeria Plc began simple trading operations in Nigeria in 1961 but has today grown into a leading food manufacturing and marketing company. It was listed on the Nigerian Stock Exchange on April 20, 1979 and as at December 2005, the number of Nigerian shareholders of the company has grown to almost 30,000. Today, 66 per cent of the company’s equity is owned by Nestle S.A. of Switzerland.
The company’s turnover in year 2005 stood at N34.34 billion, out of which the sum of over N2.60 billion was paid to the Federal Government as income taxes. In the same year, the company’s profit- before- tax stood at N7.9 billion and profit after tax, N5.3 billion.
Indications, in fact, there are many more bluechip companies where expatriates have continued to call the shots.
Olufemi O. Ige, a financial expert, told The Source that nothing is wrong with the trend. “The board of directors of a company can employ from wherever they desire, and whoever they believe would drive the organisation successfully and profitably. But in doing that, the law of the land must be considered– that is to say it must be done following the procedure stipulated by the constitution of the country.”
Victor Idehen, a financial analyst, on his part told The Source that the trend is catching on in many sectors of the economy such as manufacturing, and the hospitality business. I am not saying that it is wrong, but all I am saying is that it does not make sense to Nigerians even economically. This is because the expatriates are most times paid higher than Nigerians, even in the same position.”