Diamond Stripes Limited, which used a Special Purpose Vehicle (SPV), Pragmatic Palm Limited to sign a deal with the Enugu State Government with the view to reviving the moribund United Palm Produce Limited (UPPL), has denied any fraud in the partnership with Enugu State Government.

The Managing-Director of the company, Prof. George Nwangwu, who personally debunked the fraud allegation when he appeared on the morning show programme of the Enugu-based Afia TV, said the entire deal followed due legal processes.

He explained that Diamond Stripes Limited through Pragmatic Palms Limited, solicited the deal as it was not advertised by the state government.

 “On our own volition, we 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.

He said that the Enugu State Government was not bringing any money in the project, except only 40 per cent of the valued assets of the moribund firm, while Diamond Stripes Limited would bring 60 per cent of the operating costs and other incidental expenditure.

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 the nation’s 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 stated.

According to Prof. Nwangwu, for now, it is only Diamond Stripes Limited that is a partner in the project, while other partners could 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”.