Ondo Communities Accuse Forestry Firm of Breaching CSR, Local Content Pledges
Ondo Communities Decry Forestry Firm's Neglect of CSR

Residents of several communities in Ondo State have raised a serious alarm over the alleged failure of a forestry company operating in their area to meet its social and contractual obligations. The communities accuse the firm of neglecting its Corporate Social Responsibility (CSR) and violating local content agreements, sparking fears of unrest.

Communities Detail Alleged Breaches of Agreement

The affected communities are located in the Okitipupa and Odigbo Local Government Areas. They include Korede, Adewinle, Ago-Oyinbo, Ago-Alafia, Oloruntedo, Ayetoro, Mobolorunduro, Mile 49, and Kajola Community. Their leaders are furious over what they call a persistent undermining of their welfare and state government directives.

Speaking on behalf of the communities, Chief Kehinde Oloruntobi pointed to a specific concession agreement for sustainable forestry management under the Ondo State Afforestation Project. This agreement was reportedly signed between the Ondo State Government and Rex Forestry Limited on August 17, 2021.

"This agreement clearly states that the company must allocate one per cent of its annual budget to CSR activities," Oloruntobi explained. "It also mandates the employment of local persons, promotion of education and sanitation, provision of training for employees, and adherence to sustainability standards."

Failed Promises and a Stalled Peace Meeting

The community leader alleged that the company has breached these provisions in multiple ways. He claimed the firm hires external labour instead of local workers and appointed an external community liaison officer. Furthermore, he stated the company has failed to allocate the required CSR budget and neglected its duties to promote education, sanitation, and skills training.

The situation prompted a meeting a few months ago with the Commissioner for Agriculture and Forestry, Leye Akinola. That meeting produced a seven-point agenda which included:

  • Employment of indigenes
  • Awarding contracts to locals
  • Transparent CSR accounting
  • Placement of indigenes in top-management positions

However, Oloruntobi lamented that the company has not aligned with this agenda. "They violated government instructions," he stated, noting that the meeting ended in a deadlock.

Calls for Government Intervention to Avert Crisis

With tensions rising, a youth leader, Sunday Aro, has called on the state government under Governor Lucky Aiyedatiwa to act swiftly. The goal is to prevent a breakdown of peace and ensure the firm is held accountable for the commitments it made.

The communities have now escalated the matter by forwarding a formal letter to Commissioner Leye Akinola. This letter details all the unresolved issues from the earlier peace meeting.

Efforts to get an immediate reaction from Rex Forestry Limited were unsuccessful at the time of reporting. Calls and messages sent to the company's adviser were not responded to.