4th May 2025, NewsOrient, Law And Society, News, Governance And Development
From NewsOrient Law And Society Desk

An anti-corruption group,The Abia Conscience Movement, has called on “Abia State Government not to stop at exposing the alleged fraudulent actions of the directors of Enyimba Automated Shoe Company (ENASCO), but to ensure the directors face criminal prosecution and that Abia State indigenes’ resources invested in the company are retrieved forthwith.”

The group, in a statement, signed by the Leader, Mr Akubokwu Onuoha, expressed shock “that the name of Sam Hart, the Chief of Staff of the Deputy Speaker of Nigeria’s House of Representatives, Hon Benjamin Kalu, is linked to this scandalous action and called on the Honourable Deputy Speaker to investigate the matter immediately with the aim of clearing his name from the alleged scam except, the said Mr Hart, his Chief of Staff, is actually representing his interest in the alleged fraudulent omission of Abia State Government in the official documentation of ownership of ENASCO.

“We are sad to learn that top government officials have been collaborating with fraudulent elements to steal from the poor indigenes of Abia State.

“When the Abia State Government, then under the leadership of Dr Okezie Ikpeazu, hyped the need to invest in and promote shoe production in Aba, we whole heartedly supported and acclaimed the move. Little did we know that some elements wanted to defraud Abia people,” said Onuoha, the Leader of Abia Conscience Movement.

It would be recalled that Abia State Government recently explained why it revoked the land title previously granted to the Enyimba Automated Shoe Company (ENASCO) and why the government is set to reclaim all state-owned assets and resources committed to the company.

The State government gave the explanation in a press release it issued through the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha.

In the statement, Ukoha said the decision “followed a comprehensive audit and review conducted by one of the Big Four global consulting firms.”

According to him, “the review exposed widespread financial irregularities, governance failures, and a deliberate attempt to exclude the state from ownership despite its significant contributions.”

He said ENASCO, established in 2020 during the administration of former Governor Okezie Ikpeazu, was designed to boost Abia’s leather and footwear industry with a production target of two million shoes annually.

The Abia State Government contributed more than 70% of the total investment in the company—over N158 million in assets and N41.8 million in cash.

“However, the audit revealed that the state was not listed as a shareholder in records at the Corporate Affairs Commission (CAC), raising concerns about misappropriation.

“Current CAC documents list private individuals—Nwakile John Chidi, Udeagbala John Chinyelu, Nwaogu Chinenye, Sam Hart, and Macauley Atasie—as the only shareholders,” he said.

He added: “ENASCO was also found to have recorded declining revenues, retained losses of N115.7 million as of October 2024, and poor financial practices including unverified expenses totaling N97.7 million.”

A stakeholders’ meeting held on April 23, 2025, aimed at resolving the ownership concerns, ended in a stalemate, with existing shareholders reportedly rejecting the government’s request to restructure the shareholding and appoint representatives to the board.”

Condemning the development as “untenable and ridiculous,” the government announced the following actions:
(1) Revocation of ENASCO’s land title; (2) Repossession of all state-contributed assets;
(3) Legal action to recover misappropriated funds.”

The statement also spoke of Governor Alex Otti’s commitment to transparency, accountability, and the protection of public interest, while assuring that genuine investors who operate within the bounds of integrity and sound corporate governance will continue to be welcomed in the state.”

~ Published By NewsOrient Network

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