…Revokes land title, takes legal action to recover funds
From Okey Sampson, Umuahia
Abia State Government has in a dramatic move, revoked the land title granted to Enyimba Automated Shoe Company (ENASCO), a shoe company established by the Okezie Ikpeazu administration.
Government said it was also making moves to reclaim all government resources and assets contributed to the company.
In a statement by the Chief Press Secretary (CPS) to the Governor, Ukoha Njoku Ukoha, the government said the decision “followed a comprehensive regulatory, financial and operational review undertaken by reputable Big Four professional service firms, which unravelled significant discrepancies and corporate governance-related issues within ENASCO.”
Abia Government said it contributed immensely in the establishment of ENASCO in 2020, with equipment imported from Turkey and a projected annual production capacity of two million pairs of shoes.
It said the aim was to elevate the state’s leather industry by producing high-quality footwear for the local and international market.
Government tabulated its contribution to the company’s assets, including land, buildings, and equipment to be estimated at N158, 315, 809. 60 and cash contributions of N41,850,000.
“These contributions from public resources represented over 70 percent of the cash and assets contributed to the business till date.
However, the government said it was baffling to notice that the shareholding structure recorded at the Corporate Affairs Commission (CAC), as at November 2024 did not reflect Abia Government as a shareholder or beneficial owner despite its significant contributions.
“Subsequent changes were made to the shareholding structure in July 2023, shortly after Governor Alex Otti took office. Yet, ABSG was still not mentioned as a shareholder in any publicly available records at CAC.
“The Shareholders on the CAC record as of 3rd April 2025 are Nwakile John Chidi with 445,900 shares; Udeagbala John Chinyelu with 219,600 shares, Nwaogu Chinenye with 111,500 shares, Sam Hart with 111,500 shares and Macauley Atasie with 111,500 shares. This demonstrated a clear intention to covet and misappropriate government investment and assets.”
Government equally noted with dismay that the company’s finances were mismanaged to the point that “ENASCO’s financial performance showed a consistent decline in revenue and significant retained losses amounting to N115.7m as at October 2024.
Government revealed there was clear evidence of the utilisation of the company’s funds amounting to N97,720,294.51 from shareholders’ deposits without proper documentation or validation of expenses.
The release pointed out that it was in a bid to addressing the raised issues, that Abia Government convened an all-party stakeholders’ meeting on April 23, primarily to see that Abia Government was represented in ENASCO’s shareholding and on the Board of Directors, to represent its huge contribution of public funds and assets to ENASCO.
“Unfortunately, the meeting concluded with the existing shareholders resisting to restructure the Company’s shareholding to reflect ABSG’s contributions or to accept the appointment of Directors to represent ABSG’s interest on the board.
“The posture of the Company shareholders was not only untenable but ridiculous, as it is unacceptable that despite the overwhelming financial and asset contributions made by Abia State Government to the Company, the State does not hold a single share in ENASCO.
In the light of the above therefore, Government said it had revoked the right over the parcel of land title granted to ENASCO and reclaimed all assets contributed to the company, including land, buildings, and equipment.
In addition, the government said it was going to take appropriate legal actions to recover any additional funds or assets misappropriated by the management of the company.