In a bold decision, Abia State government has revoked land title and reclaimed the property of Enyimba Automated Shoe Company, ENASCO.
It also said that all State government resources and assets contributed to the Company would be recovered from the company.
A statement signed by the Chief Press Secretary to Governor Alex Otti, Ukoha Njoku Ukoha and made available to journalists,Fridaymorning, said the decision followed a comprehensive regulatory, financial and operational review undertaken by reputable professional service firms, which unravelled significant discrepancies and corporate governance-related issues within ENASCO.
The statement recalled that ENASCO, with equipment imported from Turkey and a projected annual production capacity of two million pairs of shoes, was established in 2020 under the administration of ex-governor Okezie Ikpeazu with the goal to elevate the State's leather industry by producing high-quality footwear for the local and international market.
According to the statement, “Abia contributed significantly to the company's assets, including land, buildings, and equipment, with a total asset contribution estimated at one hundred and fifty eight million, three hundred and fifteen thousand, eight hundred and nine Naira, sixty kobo.”
“The shareholding structure recorded at the Corporate Affairs Commission (CAC), as at November 2024 did not reflect Abia State government as a shareholder or beneficial owner despite its significant contributions.
“Subsequent changes were made to the shareholding structure in July 2023, shortly after Governor Alex Otti took office.
“Yet, ABSG was still not mentioned as a shareholder in any publicly available records at CAC”, the State government disclosed.
