Nigerian Labour Congress (NLC) - Kriston Lally Affordable Housing Scheme Scam in Abuja.
On the first of May 2013, during workers' day celebration Nigerian Labour Congress (NLC) under the leadership of AbdulWaheed Omar announced their desire to construct 300,000 housing units nation-wide in collaboration with a real estate developer, Kriston Lally EPC to provide affordable housing scheme to Nigerian workers. It was an interesting offer with initial payment of 10% of the value of any house of your choice with the keys to your new house handed to you by December 2014 while you settle in to pay off the outstanding balance spread over 2 to15 years with 2% interest rate per annum. Phase 1 of the project was for 100,000 housing units to be completed by June 2014, for owner to take possession by latest December 2014. And another 200,000 units to be delivered on or before June 30, 2015. There were different house types and each type attracted different price tags.
The Memorandum of Understanding (MoU) signed by partners stipulated that NLC would provide the land for the project and also ensure there were off-takers to subscribe while Kriston Lally EPC take care of the funding through financiers identified, build the houses and secure development approvals from the relevant authorities including Federal Capital Development Authority, FCDA. Following this arrangement, there was massive public advertisement on national and private radio stations across the country by NLC, however I never got to hear of this until in October, 2013 when my colleague brought their fliers to the office. Despite that I did not take it serious till on this fateful day while driving back from work, I heard the advert on Cool FM signed by NLC. At the mention of the labour union, I felt there would be no way it will be a scam and I decided to give it a try. And little did I know, it was an organised scam.
The next day on my way to work I stopped at Zenith bank and paid non-refundable amount of 5,000 naira into NLC-Kriston Lally EPC account for my Personal Identification Number (PIN number). Using my PIN number, I carefully filled an online subscription form on their website requesting for a 3 bedroom detached bungalow at Apo costing a total of 8,326,110naira but on the submission of the form, I paid 10% of the total cost which is 832,611naira to the same Zenith bank account. With the teller, I proceeded to Kriston Lally EPC office on No. 46 Lobito crescent at Wuse 2, Abuja where I was issued with an official receipt and an invoice was also issued for the balance of 90% with a repayment chart, endorsement form, an offer letter and a formal contract as a subscriber. Those subscribers interested in viewing the purportedly allocated plots of land in Apo, Karsana and Gosa areas before construction were accompanied by Kriston Lally contractor for viewing over the weekends, however these plots of land were never approved by FCDA.
The response by prospective subscribers were overwhelming and there was over subscription while Kriston Lally was busy directing the funds to its private account rather than the joint Zenith bank account advertised by NLC. After over a year and four months, neither the house nor the money was forthcoming and the hope of thousands of subscribers of having roof over their heads were shattered. Some subscribers started demanding for the refund of their deposit following the delay for construction to commence. The demand for refunds intensified after it was found out in June 2014 that the Department of Development Control in the FCDA did not give approval of the land purportedly allocated for the project. The attention of Economic and Financial Crimes Commission, EFCC was initially drawn to investigate the case by NLC General Secretary, Mr. Ozo-Eson but it appeared that they were not forthcoming. This made NLC approach the authorities of Directorate of State Security, DSS which moved in, arrested and detained the managing director of Kriston-Lally, Mr. Madawaki for interrogation. At the end of investigations, DSS reported clear cases of fraud against the company and its officials who agreed to pay back the money within 3 weeks. DSS also advised against a court case to avoid having subscribers wait for a long time before getting a refund. Based on this, an agreement was signed by all parties witnessed by 2 representatives of subscribers and secretariat was set up at Labour House to coordinate the process of refund.
Notwithstanding the agreement, the managing director of Kriston Lally in whose custody were the instruments of transactions including cheques books and details of all dealings with banks failed to show up stalling the whole process of refund. After more than 3 weeks of no refund, Labour House was inundated by protests of anxious subscribers which made the frustrated NLC notified DSS on 19 December, 2014 of the disappearance of Mr. Madawaki. However, he said to have initiated a legal action against NLC and DSS seeking refund for all the money that he invested in the project. Eventually, the subscribers made a case in Abuja High court which ordered that 10% of subscribers's deposits be refunded immediately without any deduction having dismissed the application filed by Kriston Lally's landlord demanding to be paid rent with subscribers' deposit. The court declared that the action of NLC-Kriston Lally breached the contractual agreement between both parties saying it was criminal and barbaric. NLC-Kriston Lally went further to refund 85% of the subscribers' deposit while withholding 15%.
The NLC-Kriston Lally housing scheme was terminated due to greed from the NLC leadership which made unrealistic demand from the initiator of the scheme including that each member of the leadership of NLC under Abdulwaheed Omar be given a plot of land in Apo district in Abuja with 21 duplexes executives.
My reflections
This is the height of disappointment that Nigerian labour Congress (NLC) will be involved in this kind of fraud to scam helpless workers when it is clear that some of them mobilised their entire savings to pay for their initial deposit. If Nigerians cannot rely on the credibility of NLC which is supposed to be a labour union then who will save the workers.
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