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Racism Allegations, Staff Exodus Hit StarTimes Nigeria

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StarTimes, a popular Chinese pay TV company in Nigeria, has come under weighty allegations of systemic racism and anti-labour practices by its Nigerian employees and ex-staff.

Nigeria CommunicationsWeek investigations confirmed that five Nigerian senior management staff and numerous junior executives have recently resigned from the company also known as NTA-Star TV Network following widespread discontent between the Chinese handlers who occupy the topmost seats and many Nigerian senior staff.

The ex-staff accused the top echelon, mainly of Chinese nationals, of deep-seated racial discrimination, management highhandedness and widespread discontent.

But, Mr. Henry Eyo, director of Human Resources at the Company in an email Nigeria CommunicationsWeek described the allegations as “very untrue and quite unfortunate”.

However, investigations confirmed that five Nigerian management staff have recently left the company in 2017 with Mr. John Esoimeme, its erstwhile National Sales Director being the latest causality in July 2017.

Recently, apart from Esoimeme, Dare Kafar, its former Nigerian Marketing Director resigned in March over the unsatisfied and awkward leadership style of the management while its Head of Public Relations, Israel Bolaji left in June 2017.

It was also gathered that both Habeeb Somoye, marketing manager and Ayokunle Idowu, content marketing manager had left earlier in very unclear circumstances amongst countless others.

An insider revealed that: “Most of the Nigerian senior staff who left have had face-offs with the most senior Chinese staff, Mr. Justin Zhang, who typifies raw racism and Chinese mafia at StarTimes. He is the mastermind of the reign of terror in the Chinese company.”

It was alleged that “Any Nigerian who confronts Zhang Justin was always sacked. There was a particular sales manager, Olumide Olawuyi-Oke, a very brilliant sales manager who was sacked on the spot for always disagreeing and raising counter opinions with Justin in meetings. Olumide was summoned to Justin’s office on September 18, 2016 after a minor argument with Justin Zhang during a management meeting and that was his last day at StarTimes.”

A middle aged female employee in the Dealer Sales Department who craved anonymity lamented thus: “Since I joined StarTimes in 2002 as a graduate, racism has remained an endemic problem here. Only a few Nigerians who can spy on others are promoted. Please check the records, 80 per cent of Nigerians have received no significant promotions or pay raise for the last 5 years in the company’s 7 years operations in Nigeria.

“It is an issue we have been battling for years and even the Nigeria Labour Congress has once picketed StarTimes Lagos office over anti-labour practices. Nigerians are really treated poorly here compared to their Chinese counterparts. There are terribly sharp differences in salaries, working conditions, and benefits such as insurance policy and promotion; arbitrary demotion of Nigerians is also a common practice and no corporate governance.

“But most importantly, the Chinese are like mafias here. No Nigerian employee dare argue or make comments when they talk. They are like the typical Chinese imperialists in traditional Chinese movies. You can tell from the air of arrogance they carry around here. They see and treat Nigerians like second fiddle no matter the office.  Strangely, the Chinese bosses have lesser qualifications and experience compared to Nigerians, but as soon as they spend a few months they are appointed director over many senior Nigerians.

“It is pathetic but because of the economic hardship, people cannot help the situation. Those of us who are junior are suffering in silence but they have been having running battles with the senior Nigerian employees most of whom were employed few years ago. That explains why many senior enlightened bright minds are leaving in anger. In fact, the Chinese often boast about Nigeria’s worsening unemployment rate which they consider an advantage. Justin Zhang usually says there is always another local guy who will do your job for a lesser pay so I can fire you, ” an insider source said. 

According to the Source, Esoimeme left in anger after he was recently demoted from his post of national sales director to regional director and transferred to Kaduna to pave way for two new Chinese employees both of whom joined the company less than a year ago – Mr. Thunder Lei and Mr. Boby Wang. Both were appointed national sales directors following Esoimeme’s unceremonious ouster. Both Lei and Wang were junior employees who earlier reported to Esoimeme before the Chinese pulled the plug on him.

It was alleged that the move was again spearhead by Justin Zhang, the former Vice President of marketing and general manager of Lagos who was just promoted to be CEO.

“Mr. Justin is known to all in StarTimes as a die-hard sadist and racist who has held sway for years. As against the practice of two-year tenure as GM, he was in fact rewarded for his highhandedness on Nigerians by the Chinese headquarters with his promotion to the post of CEO recently. The former CEO, Jack Liu was said to be too soft”, said a former staff.

A former employee of StarTimes, Charles Imomo expressed dismay over what he described as the “growing catalogue of atrocities of Chinese companies in Nigeria.”

He said, “StarTimes like many other Chinese businesses in Nigeria is full of fraud and Nazi behaviours. It is just like a Nazi detention camp where Nigerians lament in silence. I have been here since they started. No promotion and no single increment for 5 years, yet different Chinese bosses come and rise so fast within months to become directors. For instance, to our greatest surprise many of the Chinese bosses are either fresh graduates or those with much lower experience compared to their Nigerian subordinates.”   

“Racism is so rife and pathetic that Nigerian senior managers merely carry big portfolios without requisite powers as only Chinese staff call the shots. For instance, every February, the Chinese bosses usually travel to China for their New Year festivity. Before the Chinese bosses travel, they would announce a junior Chinese staffer who takes charge of the company in spite of having Nigerian directors.

“No structure, no hierarchy, only Chinese and Nigerians. That’s all. For example during such trip in December 2015, Mr. Berlin, the logistics manager in Lagos was announced as the acting GM of Lagos office by then vice president marketing, Justin Zhang, in the presence of two Nigerian directors – Dare Kafar and John Esoimeme who watched in utter disbelief. There is a pervasive air of superiority and crude arrogance that the Chinese carry around the company. They order Nigerian staff around and threaten to sack at the slightest provocation.

“We once had a Chinese boss in Lagos office called Mr Stone who was so notorious with a violent temperament, so much that he was fond of slapping Nigerian staff at will. When his excesses became unbearable, the NTA, our partner company, having received so much complains from the Nigerian staff came to the rescue. NTA insisted Mr Stone be banished to China. He was smuggled out of Nigeria overnight. It was that bad.

“The Chinese are fond of cutting corners and engaged in sharp practices. Many of them have neither the required immigration papers for residence nor the professional licenses or locally required certificates to perform their local roles in Nigeria. For example, Mr. Justin Zhang, the new CEO was the Vice president Marketing for over three years without any APCON certification, license or membership (Find attached letter to him from APCON) When queried by APCON, he denied and continued his role with impunity. Such is the behaviour of the average Chinese.

“The practice at StarTimes is that while Chinese staffers are treated like royalty most senior Nigerian staff are contract staff, even directors. The trick is to offer employment to Nigerians with a clause that the contract is renewable per annum. This makes it easy to ease out stubborn Nigerians. They simply refuse to renew your contract when you argue with any Chinese. Nigerians no matter how highly placed are fired at will or frustrated to resign. Government should deploy undercover intelligence to unravel the underhand deals in StarTimes. On the average, no fewer than 10 Nigerians resign from StarTimes monthly.

There’s definitely an impending implosion if nothing is done. NTA is aware and has tried hard to wade into this matter but with no results. That Nigerians are enslaved on their own land is absurd,” said another ex-staff.

StarTimes Responds to Allegations
When contacted, Mr. Eyo told Nigeria CommunicationsWeek that the allegation of racism in organization was very untrue, quite unfortunate, “and it is disturbing that anyone would make such an allegation. Like every other multinational organization with employees from different nationalities (i.e. Nigeria and China) , it is impossible for you not to have misunderstandings, and occasional healthy arguments.

“There is no multinational in the world, where cultures haven’t clashed or individuals from different nationalities have not had misunderstandings, either as a result of communication challenges of lack of it; but we constantly ensure such issues are addressed promptly and none of such have been as a result of racism.

Commenting on five Nigerian management staff that recently left-over power struggle, face-offs with the most senior Chinese staff, Mr. Justin Zhang, he said, “As the HR Director, I am quite surprised at the news that five senior management staff had recently resigned. As far as I know, Dare Kafar resigned because he got another job, and was immediately replaced by the next in line in the department who is also a Nigerian.

“Olumide Oke-Olawuyi had a record of poor performance for over a year, in spite of this management still gave him all the resources and support required. Even when he was not measuring up to the expectations and targets set by management he was given over a year to turn around his performance.

“Olumide voluntarily resigned after a series of warning letters.

“As for John Esoimeme, he also voluntarily resigned. The three (3) individuals I have mentioned above are those we consider as senior management staff.

“Justin Zhang the new CEO is an individual with very keen interest in excellent performance, and many of the hard-working staff have been promoted and rewarded financially in recent times under his administration, irrespective of their nationality.

“Our current acting Marketing and Branding Director, a Nigerian is one of the beneficiaries of Justin Zhang’ s reward for performance policy. We also had two new Zonal Director positions created and the positions are currently filled by Nigerian’s who had shown a track record of excellent performance. Also, we just recently promoted one of our hard-working Nigerian female staff to the position of Assistant Director in charge of our Business Halls and all these have happened within the few months of Justin Zhang taking over the helm of affair of StarTimes Nigeria.

“It is quite unfortunate that anyone will dub StarTimes or Justin Zhang as being racist. As a country, it is important for us to continually imbibe the culture of excellent performance to ensure we achieve major feats; and that is a culture we are not ashamed to promote in StarTimes Nigeria.

“Finally let’s not forget that StarTimes Nigeria also officially known as NTA-Star TV Network Limited is a joint venture between NTA and Star Group of China, and the Chairman of the board is the DG of NTA. NTA will never close its eyes and allow any form of racism or malpractices”.

He however admitted that Mr. Justin Zhang introduced new policies that could have let loose the fury in some of the staff.

“We do have policies in place to ensure that our staff members respect each other and are well protected. These policies cut across all staff without

“Under the leadership of Justin Zhang, we have extended Life Insurance cover for our contract staff, we have created over 30 managerial positions at State levels as a reward for our excellent performing sales people. We have extended health cover for our contract staff members. We also recently introduced an education and professional development policy for all our staff, to help them further their education and become better at what they do.

“As an organization, we provide direct employment for over 1,310 Nigerians, and we have over 3,000 individuals employed nationwide by our dealers and various vendors and partners who rely on us for business.

“We do not and have not in anyway gone against any labour regulations. As a matter of fact, a Nigerian HR Director (in my person) was employed for close to 3 years now, and this was due to management’s interest in ensuring that someone knowledgeable about the Nigeria Labor practices should handle the affairs of the HR department”.

Speaking on the alleged flouting of APCON regulatory orders especially by Zhang, the Director of HR said, “As for the APCON issues I am not aware of this. But Justin Zhang respects the rules and laws governing business practices in Nigeria.

“On a final note , we trust that you would provide a well-balanced information considering your track record as a respected news reporter”.

 

 


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Simi to Feature on Glo Sponsored African Voices

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This week, the incredible talents of Nigerian singer, songwriter, and actress Simisola Bolatito Kosoko, better known by her stage name, Simi, will be highlighted on African Voices Changemakers, an interview program sponsored by Globacom on Cable News Network (CNN).

Simi began her career initially as a gospel singer. Her debut studio album, “Ogaju”, was released in 2008. After she got a record deal with X3M Music in 2014, she released the album “Tiff,” which was nominated for a 2015 Headies Best Alternative Song award.

Her debut studio album, “Omo Charlie Champagne”, Vol. 1, was released to mark her 31st birthday on April 19, 2019, and her second album, “Simisola”, was also released the same year. She became the CEO of her own label, Studio Brat, which she launched in June 2019.

Simi was one of the judges of the Season 7 of the Nigerian idol TV show in 2022.

Mother of a girl named Dejare, Simi married popular musician, Adekunle Gold in 2019 having graduated from Covenant University in Ota, Ogun State. Some of her works include “Joromi”, “Know You”, “Jericho”, and “Duduke”.

On Saturday at 8.30 a.m., the 30-minute magazine show will air on the global channel. Reruns can be seen on Saturday at noon, Sunday at 4.30 a.m., and Sunday at 7:00 p.m. Another rerun will air at 4 a.m. on Monday of the following week, 8.30 a.m. and 12 p.m. on Saturday, and 7 p.m. and 9.30 p.m. on Sunday.


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Canal+ Offer for MultiChoice Gains Shareholders’ Support

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Some MultiChoice shareholders have expressed relief at the offer by Canal+ to buy Africa’s pay TV giant for $2.9 billion, essentially viewing the potential deal as a vehicle for them to be rescued from an investment that has turned sour.

Canal+ Offer for MultiChoice Gains Shareholders’ Support

On April 8,, the deal inched closer to being cemented when the board of MultiChoice agreed to cooperate with Canal+, a sign that it was warming to a tie-up with France’s broadcasting conglomerate.

The board initially rejected the offer by Canal+ to buy the MultiChoice shares that it does not already own for R105 each, saying it was too low and undervalued the company’s growth prospects.

But MultiChoice has been convinced to reconsider its position after Canal+ improved the offer to R125 per share. Canal+ already owns 40.01% of MultiChoice shares on the JSE and wants to pay R35-billion to buy the rest of the company and take control of it.

The next big test is whether MultiChoice shareholders will support or reject Canal+’s offer, which requires support from 90% of shareholders to get the multibillion-rand deal over the line.

Daily Maverick canvassed the views of MultiChoice shareholders and industry players about the merits of the deal and whether they planned to throw their weight behind it when it comes up for a vote in the coming months.

Early indications are that some shareholders view the deal as a blessing and an opportunity to bail out from their investment in MultiChoice.

Before Canal+ made a move on MultiChoice, the latter’s share price had been down by 22% as its operations came under pressure from declining DStv subscriber numbers and intense competition from streaming services such as Netflix, Amazon Prime and Disney+.

Its earnings have also taken a hit of billions of rands because of the depreciation of African currencies against the US dollar, especially the Nigerian naira.

MultiChoice also had a run-in with regulators; in Nigeria, it ran into problems relating to outstanding tax payments. In South Africa, competitors including the SABC and eMedia (the owner of e.tv) have complained to regulators, accusing MultiChoice of anti-competitive behaviour and using its dominant position to restrict access to its broadcasting platforms and dictating restrictive licensing agreements.

The investment community response

Anthony Sedgwick, the cofounder of Abax Investments, was withering in his assessment of MultiChoice’s investment prospects. “Put frankly, we were relieved to see Canal+ finally step up and bail us out of the position,” he said.

According to MultiChoice’s latest annual report, Abax Investments held 0.34% of its shares. But Abax recently sold those shares, taking advantage of MultiChoice’s 25% share price jump since Canal+ initially tabled its buyout offer in February.

“We think Multichoice is a great business that produces an incredible variety of content, creates opportunities for so many talented people, supports a huge variety of good causes and is a real South African business champion.

“But it operates in unfriendly regulatory countries … and faces some headwinds from hard currency priced content and broadcast costs,” Sedgwick said.

Asief Mohamed, the chief investment officer of Aeon Investment Management, shared Sedgwick’s concerns about MultiChoice.

“My guess is that the other shareholders will likely accept the R125 offer. Governance has for a long time been a concern of some shareholders, including ourselves,” Mohamed told Daily Maverick.

MultiChoice’s latest annual report puts Aeon’s shareholding in it at 0.43%.

Merits of the deal

Canal+ has argued that the aim of buying MultiChoice would be to combine both businesses to create an entertainment giant that can survive a market facing intense competition and declining advertising revenue.

A combined Canal+ and MultiChoice will boast media businesses in many African countries, from South Africa and Nigeria to Senegal and Cameroon.

Not all investors are pessimistic about MultiChoice, its business fundamentals and investment prospects. In fact, when MultiChoice ran into tax troubles in Nigeria in July 2021, which precipitated a steep decline in its share price (to a low of R115), Argon Asset Management saw it as a buying opportunity. It bought MultiChoice shares and has since maintained its holding in the company to about 0.41%.

Asked why Argon remained bullish about MultiChoice, the asset management firm’s equity analyst, Richard Court, said: “Simplistically, there are two parts to MCG [MultiChoice Group]. There is the mature South African business, which, for the most part, was highly profitable and cash-generative.

“Then there is the business that MCG is building in the rest of Africa, which was actually a drag on profitability, and it was still quite small in the life of MCG from a bottom-line perspective. Nigeria takes up a lot of the bandwidth.

“We think the market was overly pessimistic on the prospects of the rest-of-Africa segment. We thought the market was overreacting to the possibility of a tax penalty coming out of Nigeria. The share price fell back and we just took the buying opportunity. We thought that MCG share was worth more than the levels at the time.”

Court said MultiChoice had managed to defend its premium TV segment (consumers who subscribe to DSTV premium packages) despite the arrival of international streaming services in South Africa.

“It did quite well in the lower segment and in the lower-cost offerings by growing subscriptions in those markets. Management was doing the right thing strategically and executing quite well on that strategy,” he said.

MultiChoice’s investments into Showmax strengthened its defence position, he said.

Argon’s house view is that Canal+’s R125 offer undervalues MultiChoice and its growth prospects.

“At the moment, we are unlikely to accept at R125. In a few years from now, if they’re able to build Showmax and if Nigeria stabilises, which we can’t say when, then I think the outlook for MCG is going to be a lot rosier than what it is now. I think the market would recognise that and that should reflect in the share price,” Court said. He was unwilling to comment on what he thought would be a fair offer from Canal+.

Canal+ said the media industry in which MultiChoice was operating “is becoming increasingly globalised and competitive, with regional media companies having to compete with the firepower of global media titans, with enormous resources to invest in content, marketing and technology…”

With a customer base of 22 million, MultiChoice’s growth strategy involves investing in local and international content for its streaming service, Showmax, and Canal+ is likely to provide capital to fund the growth.

Peter Takaendesa, the head of equities at Mergence Investment Managers, has argued that only companies with scale and a strong balance sheet are likely to survive changes in the entertainment industry.

“Canal+ and MultiChoice can leverage content and financial strength. However, there is still no guarantee of success, as the fight against global streaming giants is intense.”

Other large MultiChoice shareholders are yet to opine on the deal. They include the Public Investment Corporation (PIC), which holds 13%, M&G Investments (more than 7%) and Allan Gray (6%). Allan Gray declined to comment to Daily Maverick, and M&G and the PIC were not available to do so.

Another MultiChoice shareholder that is not ready to express its view on the Canal+ deal is Sanlam Investments, which has a 1.9% interest in the broadcasting company. Sanlam said it opted not to express its stance or intentions “considering the sensitive nature of ongoing negotiations” pertaining to the deal.

“While we understand the importance of transparency and accountability, we believe it is essential to maintain confidentiality and prudence when dealing with such matters,” Sanlam said.

The MultiChoice-Canal+ deal is likely to take two years to be completed, as it still requires regulatory approval.

Credit: Daily Maverick

 

 

 


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FemyWalsh Set to Launch FM Radio in Lagos

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FemyWalsh Limited, media conglomerate, is set to launch its flagship FM terrestrial radio station as it receives its licence from the National Broadcasting Commission (NBC).

FemyWalsh Set to Launch FM Radio in Lagos

This adds yet another media asset to the FemyWalsh group, which already comprises SOUQ News TV, Walsh Radio Online, Terminal Seven Audio-Visual Studio and Walsh Photography.

Victor Walsh Oluwafemi, company CEO, and Dr Idahosa Osamhanze, vice president, were presented with the operational licence by Mr Charles Ebuebu director general NBC at the commission[s  office in Abuja.

This move marks a significant expansion in FemyWalsh’s media footprint and paves the way for broader audience engagement and impact. With the addition of this new licence, FemyWalsh is poised to reach even more viewers and listeners across Nigeria.

The company’s commitment to delivering high-quality content and innovative programming remains unwavering.

According to Oluwafemi, acquiring the terrestrial FM radio licence underscores the group’s ambition of being the largest and most impactful media network across Nigeria, as well as the African region.

“Getting into the terrestrial radio space and securing the operational license represents a pivotal moment for the FemyWalsh group as we continue to evolve and innovate in the media landscape. Radio has long been a powerful medium for reaching diverse audiences, and we are thrilled to leverage this platform to amplify further our mission of empowering SMEs and driving economic growth in Nigeria.”

For his part, Osamhanze, who is the Vice President of the organisation, also made it known that this was a dream come true, and a representation of the company’s dedication to the long-term development of the Nigerian media space. “With this new initiative, FemyWalsh Limited is poised to make a significant contribution to the future of Nigerian media. We are thrilled for the opportunity to foster a thriving media landscape for years to come.”

FemyWalsh Limited is the owner of SOUQ News TV, a digital satellite channel licensed for broadcast in Nigeria and the United Arab Emirates.

The radio licence acquisition comes at a time when SOUQ News TV is experiencing rapid development and expansion, building on its established reputation for excellence in journalism and commitment to serving its viewers.

 

 

 


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