The Enugu State Government, last week, signed a N100 billion deal with Pragmatic Palms Limited to resuscitate the moribund United Palm Products Limited in the state.
The Labour Party (LP) in Enugu State has asked the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the recent N100 billion deal between the state government and a firm.
PREMIUM TIMES reported that the state government, last week, signed a N100 billion deal with Pragmatic Palms Limited to resuscitate the moribund United Palm Products Limited in Enugu State.
Pragmatic Palm Limited is a subsidiary of Diamond Stripes Limited.
The state government set up United Palm Products Limited to plant palm trees and engage in the production of palm products such as palm oil and kernel, among others.
The firm is an offshoot of the defunct Agricultural Development Corporation established in 1970 by the then Eastern region government led by Premier Michael Okpara.
However, the United Palm Products Ltd has remained moribund as efforts by successive administrations in the state to revive it were unsuccessful.
Governor Peter Mbah of Enugu State said the deal was in line with his administration's determination to grow the state's economy from $4.4 billion to $30 billion.
Labour Party reacts
But the LP in the state, in a statement on Sunday by its Chairperson, Casmir Agbo, and Secretary, Onuora Odo, alleged that the deal was a conduit by the government to embezzle the state's resources.
"It is important also to draw the attention of the people of Enugu State, the federal government of Nigeria, and the anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to what looks like a grand plan to divert the resources of Enugu State through what looks like a conduit," the LP said in the statement.
The party claimed the partnering company was registered only four days before it signed the agreement with the state government.
"Checks at the Corporate Affairs Commission (CAC) have created a cloud of suspicion around the project following our discovery that Pragmatic Palms Limited was registered only on May 6, 2024, four days before the partnership agreement was signed with the Enugu State Government on May 10, 2024," the statement said.
'Company has no competence in agriculture.'
The LP said they further conducted checks on the CAC and the company's website, pointing out that their findings show that the company and its owner, George Nwangwu, have no competence in agriculture.
"Diamond Stripes Limited, which is also worth highlighting, started business in 2013 and has its capacities in the area of hydroelectric generation and port management. Nowhere on its website was its capacity for agriculture and agro-processing mentioned.
"More worrisome is the fact that the owner of the company, Prof George Nwangwu, has no known track record in agriculture and related areas," the party said.
What we found on the CAC website
Meanwhile, PREMIUM TIMES carried out a search on the CAC website and found that Pragmatic Palm Limited, a subsidiary of Diamond Stripes Limited, was truly registered on 6 May 2024, with its office located at 5 Kokoma Close, Wuse II in Abuja, Nigeria's capital.
The registration was done about four days before the company signed the agreement with the Enugu State Government.
'Why we're worried'
"We are worried because a lot of things in the transaction (between the government and the firm) do not appear straightforward.
"First, by sheer stroke of coincidence, Pragmatic Palms Limited's registered office located at 5 Kokoma Close, Wuse II, Abuja, appeared in our search to be the same as that of a Law firm, Ratio Legal Practitioners LLP, which also processed the registration of Pragmatic Palms Limited," the LP said.
"We are also worried that while on its website, Diamond Stripes Limited claimed it was in the business of electricity generation, ports services, and the building of silos, data on its registration documents at the Corporate Affairs Commission indicated that it was registered 'to carry on the business of the manufacturer, importation, exportation, distribution, promotion, sales, supply and marketing of all types of products, materials, agents, reagents and equipment. To engage in the business of real estate and property,"' the party added.
It stressed that the development was strange and suspicious, given that
CAC no longer permits the registration and operation of "omnibus businesses" in Nigeria.
The LP asked Governor Mbah to provide details of the agreement with the company, including when discussions on the partnership began and how he concluded and signed the deal within four days of incorporating the company.
Enugu govt reacts
The Enugu State Government, in its first response, argued that the deal with Pragmatic Palms Limited happened after "months-long negotiation and due diligence that started way back in 2023."
The Senior Special Adviser to Governor Mbah on External Relations, Uche Anichukwu, in a statement on Monday, said the state government will not pay any money to the company for the deal.
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"Pragmatic Palm Limited will provide finance for 60 per cent of the transaction value, while the Enugu State Government will provide the plantations valued as 40 per cent equity," Mr Anichukwu said.
The governor's aide said the Pragmatic Palm Limited was duly incorporated before the deal was signed.
He stressed that, in line with terms of the deal, Diamond Stripes Limited was presented to the government by the partnering firm as their guarantor.
Mr Anichukwu suggested that although Diamond Stripes Limited has been investing in the power sector and port sector, it has also been investing in the agricultural sector since 2013.
He assured that the state government had inserted certain terms into the agreement to safeguard its interests in the deal.
"Importantly, performance targets and timelines were equally set in the agreement for Pragmatic Palms Limited, failing which the Enugu State Government is free to revoke the deal and reassume total ownership of United Palm Products Limited," he said.
"In addition, the Enugu State Government is represented on the company's Board, including the Chairmanship of the Board, as part of the steps taken to secure the state's interest."
