Business
Governor Peter Mbah Signs N100b MoU With Four-Day-Old Company
iexclusivenews – Enugu State Governor Peter Mbah has signed a memorandum of understanding (MoU) with Pragmatic Palms Limited, a company registered just four days before the deal was announced, to revive the moribund United Palm Products Limited (UPPL).
The N100 billion partnership aims to boost the state’s economy from $4.4 billion to $30 billion.
However, the company’s recent registration and unclear ownership structure raise concerns about due process and potential violations of procurement laws.
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Company Background
Pragmatic Palms Limited was registered on May 6, 2024, with the Corporate Affairs Commission (CAC).
Further investigation reveals that the company is a subsidiary of Diamond Stripes Limited, which was registered in November 2007 and is owned by George Nwangwu.
Two other companies associated with Diamond Stripes Limited were registered between 2020 and 2022.
However, Diamond Stripes Limited is listed as inactive by the CAC, violating Section 822 (1) of the Companies and Allied Matters Act (CAMA 2020).
Partnership Concerns
The partnership raises questions about whether the government followed due process in sealing the deal.
If Peter Mbah contractually entrusts UPPL to Pragmatic Palms, he may violate provisions requiring procuring entities to have a three-year clearance before getting government contracts.
If Diamond Stripes Limited takes over UPPL instead, Peter Mbah may violate Enugu State procurement laws requiring entities to have fulfilled all obligations to pay taxes, pensions, and social security contributions.
