The Labour Party (LP) in Enugu State has raised concerns over the partnership agreement between the Enugu State government and Pragmatic Farms Limited, alleging that it may be a conduit to siphon the state’s resources.
In a statement signed by its Chairman, Comrade Casmir Uchenna Agbo, and Publicity Secretary, Onuora Odo, the party questioned the propriety of the transaction, pointing out that the company was allegedly registered only four days before signing the agreement with the state government.
The party demanded transparency in the deal and called on Governor Alex Otti to clarify when discussions on the partnership began and how the deal was concluded within four days of incorporating the company.
However, Senior Special Adviser to the Governor on External Relations, Mr Uche Anichukwu, clarified that the state government was not releasing N100 billion to Pragmatic Palms Ltd.
Instead, Pragmatic Palms Ltd., a Special Purpose Vehicle (SPV) for the partnership, will finance the revitalization of United Palm Products Ltd. (UPPL), with the state government providing plantations valued as 40 percent equity.
Anichukwu explained that Pragmatic Palms Ltd. provided a guarantor, Diamond Stripes Ltd., a reputable company with investments in power, renewable energy, port, and agricultural sectors.
He reassured that the state’s interest in the deal is well secured, with performance targets and timelines set for Pragmatic Palms Ltd.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate