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From Jude Chinedu, Enugu
The Enugu Good Governance Group (E-3G) has reprimanded former Chibok schoolgirls’ activist, Aisha Yesufu, over what it described as “willful lies and misinformation” over the N100 billion deal recently signed by the Enugu State government and a private firm to revive the moribund state-owned United Palm Products Ltd.
It said whereas Yesufu claimed that the Governor Peter Mbah Government awarded a N100 billion contract to a newly incorporated firm, it is actually the company, which is a Special Purpose Vehicle (SPV), that is funding 60 percent of the transaction value.
It accused her of rushing to the social media to amplify Enugu LP’s mischief and ignorance-driven claims over the N100 billion deal without doing her due diligence.
The Enugu Good Governance Group, however, commended Governor Peter Mbah highly for what it described as “a mega deal that would change the fortunes of United Palm Products Ltd. from a moribund entity to a profitable asset.
In a statement issued by its National Coordinator, Odinaka Okechukwu, yesterday, the group said: “In Yesufu’s words, ‘How do you give a N100 billion contract to a company that was registered days ago? A company that was registered nine days ago is now collecting a N100 billion contract.’
“But ironically, there is no N100 billion contract and we did not see the award of the N100 billion contract anywhere in the government’s statement announcing the deal.
“As clearly stated in government’s explanatory, it is Pragmatic Palms Ltd. that is funding the revival of the state-owned United Palm Products Limited to the tune of 60 percent of the transaction value.
“Enugu State Government, on the other hand, holds 40 per cent of the equity, which is the value of the land or assets, which it is contributing to the transaction. In other words, the government is not contributing any money,” the group stated.
The Enugu group wondered if Aisha Yesufu had never heard the term “Special Purpose Vehicle” in all her years of activism, which is what Pragmatic Palms Limited represents in the N100 billion deal.
“For the avoidance of doubt, SPVs are subsidiary companies, which are formed to undertake a specific business purpose or activity.
“In this instance, because many partners are involved and also to guarantee both the government and investors’ corporate interests, it became necessary to incorporate an SPV to handle the transaction.
“It is for this reason that the Enugu State government produces the Board Chairman and other Directors, while the SPV’s parent company, Diamond Stripes, produces the MD/CEO.
“Therefore, it is very unfortunate that Aisha Yesufu chose to mislead the unsuspecting public when people like Oby Ezekwesili could have schooled her for free on how investment deals and partnerships like this are made if only she asked questions.
“We sincerely urge other activists to learn from this unfortunate advertisement of ignorance, mischief, bias, and the proclivity to latch on anything to trend on social media at the expense of others.
“Meanwhile, we commend Governor Mbah for this mega deal. We believe that the resuscitation of United Palm Products Ltd. will boost the state’s economic recovery, create jobs, and further strengthen security in the state,” the group said.
