The step being taken by the Enugu State government to revamp the moribund United Palm Products Ltd (UPPL) does not appear to go down well with a section of society there. While many people believe that it is a noble idea capable of improving the economy of the state, a political party there says it smells a rat in the deal for the reactivation of the company.
The Enugu State chapter of the Labour Party, LP has, therefore, opposed the project, alleging that it might be a conduit to siphon the state’s resources. The party, in a statement signed by its Chairman, Comrade Casmir Uchenna Agbo, and Publicity Secretary, Onuora Odo, questioned the propriety of the transaction, pointing out that the company in question was allegedly registered only four days before it signed the agreement with the Enugu state government. It accused the government of planning to use the alleged newly registered company as a conduit to syphon the resources of the state, saying that there was no indication that the company has the track record and capacity to manage the enterprise.
“We are raising this alarm because the entire project smells of large-scale fraud and as a responsible and responsive political party, we owe it to the people of the state, the duty of drawing their attention to what we see as economic rape and corrupt tendencies.” This is because, according to Labour Party, “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 party demanded that the state governor should tell the people of the state “when discussions on this partnership began and how he concluded and signed the deal within four days of incorporating the company”. It continued, “We are worried because a lot of things in the transaction do not appear straightforward. “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 opposition party, aside from calling on people of the state to be vigilant also asked the anti-graft agencies to step into the matter. It said, “We also invite the anti-corruption agencies to investigate this transaction with a view to saving the people of Enugu State from what looks like a bogus transaction.”
The partnership between the Enugu State Government and Pragmatic Farms Limited, worth N100 billion, is for the revival of the moribund United Palm Products Ltd (UPPL), which was started in the first republic.