Diamond Stripes Limited which used its Special Purpose Vehicle (SPV)- Pragmatic Palm Limited to sign a deal with the Enugu State Government to revive the moribund United Palm Produce Limited (UPPL) has denied any Fraud in the consummation of partnership.
Managing Director of the Company, Professor George Nwangwu, who debunked the fraud allegation during the week when he appeared on the morning show of the Enugu-based Afia TV, said the entire deal followed due process.
He explained that Diamond Stripes Limited through Pragmatic Palms Limited solicited the deal as it was not advertised by the Enugu State Government “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”.
He said that the Enugu State Government was not injecting any financial resources in the project but only 40 percent of the valued assets of the moribund firm while Diamond Stripes Limited would bring 60 percent of the operating costs and other variables.
On the allegation that Pragmatic Palms Limited was incorporated few days to the signing of the deal,the MD explained that it is 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 Affair 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.
According to Nwangwu, for now, it is only Diamond Stripes Limited that is a partner in the project while other partners would join later with proper allotment of shares.
The MD said the South-East region has experienced a lot of challenges, including ,insecurity and that “as someone from the area,l 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.We should be encouraged and not insinuating wrong doings in the execution of the partnership with the Enugu State Government”,he stated.
George Nwangwu, is a Professor of Project Financing Law, who has led transaction teams that have participated in the consummation of over 100 privatisation or Public Private Partnership (PPP) transactions worth over $20 billion across Africa.
He was the Head of Infrastructure Finance at the Ministry of Finance under the leadership of Dr. Ngozi Okonjo-Iweala, during which he led the team that delivered the Second Niger Bridge.”
As an academic, he is recognized for his publications on public-private partnerships. He is also recognized as a leading authority on private sector-led investments in infrastructure and is the head of the Consortium operating at the Onitsha River Port.