No Fraud in Deal with Enugu State, Says Firm
Ndubuisi Francis in Abuja
Diamond Stripes Limited, which recently signed an agreement with the Enugu State Government, using its special purpose vehicle (SPV)- Pragmatic Palm Limited, in a move to revive the moribund United Palm Produce Limited (UPPL) has denied any form of fraud in the deal.
Managing Director of the company, Prof. George Nwangwu, who debunked the fraud allegation when he appeared on the morning show of an Enugu-local TV station, said the entire deal was transparent and followed due process.
He explained that Diamond Stripes Limited through Pragmatic Palms Limited solicited the deal as it was not advertised by the state government, adding, “but on our own volition carried out feasibility studies on Adapalm in Imo State and UPPL and we were satisfied that it was worth investing in the latter.”
Explaining the details, he disclosed that the Enugu State Government was not committing any financial resources to the project but only 40 per cent of the valued assets of the moribund firm while Diamond Stripes Limited would bring 60 per cent of the operating costs and other variables.
On the allegation that Pragmatic Palms Limited was incorporated few days to the signing of the deal, Nwangwu explained that it was in line with project financing which entails that during negotiations, the investor reserves a name which after the exercise, the reserved name would be registered with the Corporate Affairs Commission (CAC).
“It is when the transaction is completed that you register the SPV as a consortium made up of financial, strategic and technical partners,” he added.
He said the South-East region has experienced a lot of challenges, including insecurity, adding: “as someone from the area, I feel concerned, hence, the need to set up businesses to create jobs for the teeming youth.
He urged politicians to support such business ventures instead of casting aspersions on the brains behind such businesses.
“If the UPPL which has been moribund for about 30 years now is revived, it will create jobs for indigenes of Enugu State and indeed, the South-East as well as generate revenue for the state,” he stated.
