Jimoh Ibrahim faces tough challenges over Newswatch closure

At a press briefing held at the instance of the four veteran journalists at the NUJ office in Oregun, Lagos last Thursday, they distance themselves from the decision to close down Newswatch, saying the publisher did not consult them before taking the decision. They demanded that the suspension placed on its publication by Jimoh Ibrahim, […]

At a press briefing held at the instance of the four veteran journalists at the NUJ office in Oregun, Lagos last Thursday, they distance themselves from the decision to close down Newswatch, saying the publisher did not consult them before taking the decision. They demanded that the suspension placed on its publication by Jimoh Ibrahim, who has 51 percent shares be reversed.

According to Ekpu, “the decision came to us as to millions of Nigerians as a big shock. Newswatch has devotedly kept faith with its readers since its debut as the pioneer weekly magazine on February 28, 1985”.

Jimoh Ihrabim who is the Chairman of Global Fleet  Oil, NICON Insurance Plc and Publisher of National Mirror newspaper acquired 51 percent shares of  Newswatch magazine last year. Under the takeover deal, Mr Ibrahim was expected to pay up outstanding salaries of staff and other liabilities of the company.

The business mogul, who has already  acquired three media organizations, including Daily Sketch, formerly owned by state governments of South West; the National Mirror from Prince Emeka Obasi, a former Commissioner for Information in Abia State during ex-governor Orji Kalu’s administration, and now the Newswatch, was said to have told the staff of the company that the new management would not tamper with the editorial team of the magazine because it’s problem was finance and not incompetence.

However,  Nigeria’s oldest news magazine’s  publication was suspended from last week, a decision its new publisher said it was done  in order to carry out a process of turn around and rebranding.

Defending his action Jimoh Ibrahim said the company would henceforth operate from the head office of the Global Fleet Group on Broad Street, Lagos Island.

Ibrahim, who said he invested in the magazine because of his respect for journalism and for the love for the cause  Dele Giwa died also commended the journalistic contribution of the editorial staff of the company.

He said: “In my capacity as the publisher of Newswatch magazine, and the Chairman of the Board of Directors, I hereby suspend the publication of Newswatch magazine from the newsstands with immediate effect.  The decision is taken to reposition the magazine and make it relevant to modern development and as such the magazine is due for corporate surgery.”  He promised that the new office will be equipped with modern day technology,  computers, ipads, and standard furniture.

He claimed that National Mirror newspaper is now competing favourably with its peers in the country because it went through a similar re-branding.

Challenging this decision, one of the funding members of the magazine,  Muhammed said “we are astonished that 15 months after, Ibrahim is talking about corporate surgery. What happened to the turn around which was to have been completed within one year by the new management? What has led to the deterioration of the company since May 15,2011?

A source  told our reporter that what has snowballed into crisis between Jimoh Ibrahim, the founding members of the organization and staff of the company, started few months after he took over the company.  He said when he was taking over  the Newswatch  he  promised to turn around the company as a core investor.

But one year after, all his promises to turn around the fortunes of the company are yet to materialise, as staff are being owed four months salary in addition to outstanding transport and production allowances.

Also the likes of Ray Ekpu and other directors were said to be particularly unhappy over Ibrahim’s management style. Besides, they were also not happy that one year after promising to buy and install two printing machines for Newswatch, he had not done anything in that regard.

For these, the former Chief Executive Officer of Newswatch Communications Limited, Ray Ekpu, and other directors of the company are said to be making efforts to reclaim the 51 per cent stake that was acquired by Ibrahim.

It was also gathered that former President Olusegun Obasanjo, at some instances, had waded in to resolve the crisis. At the meeting, the directors were reported to have complained of the management style of  Ibrahim in the running of the company and his refusal to abide by the provisions of the agreement signed between the parties before he took over the company.

The directors, at a press briefing held recently in Lagos, also claimed that Ibrahim’s decision to shut down the  company was because the workers refused to move to a new office in Lagos Island as directed by the new management, except their salary arrears are paid.

In a  petition by members of the NUJ, Newswatch Chapel, to the Lagos chapter of the union, staff of the company claimed they have until now exercised caution and restraint regarding the prevailing unbearable working conditions in the establishment.

The petition reads in part: “ In the last six months, every staff has been working relentlessly to generate revenue for the company and the efforts have paid off on many occasions. We have advertisement revenues hanging in various companies, including NNPC, Air Nigeria, Federal Mortgage Bank, ECOWAS and others.

“While we are expecting these funds, the company’s management team has been grappling with lack of working capital, which ought to have been injected in the last one year. Worst still, the gates of the company may be locked this Friday, August 3, 2012 by the Lagos State Government for non-payment of the Land Use Charge”.

In the face-off between Jimoh Ibrahim, the directors and staff of Newswatch, the Lagos State Council of NUJ, has asked the management to pay the workers their four Months salary arrears before talking about repositioning the publication.

The Lagos NUJ, in a statement in Ikeja, on Friday by its Chairman, Deji Elumoye and Secretary, Sylva Okereke, wondered why the Chairman of Newswatch magazine, Mr. Jimoh Ibrahim, would be talking about repositioning the publication without considering the welfare of the workforce, which stands at 106.

“How can you be repositioning when, in the last 15 months when Jimoh Ibrahim bought 51 per cent controlling shares in Newswatch, he has been finding it difficult to pay staff salaries and it came to a peak that workers have not been paid since May  2012.

“What is there to reposition when even management is also having problem to pay common weekly transport claims to the editorial staff and that, as at today, the claims (BTA) for over 10 weeks are yet to be cleared.’’

The council added that the management should have a re-think about suspending the publication and rather tackle headlong the issue of low morale among the staff due to the non-payment of salaries and allowances.