Why Akwa Ibom Gov Umo Ordered Transfer of Public Enterprises’ Shares To AKICORP

By Ed Malik, A | ed@ddnewsonline.com | posted november 21st, 2024

The Akwa Ibom State Government has announced reforms aimed at addressing financial mismanagement and enhance accountability in state-owned enterprises (SOEs), with a focus on the troubled Dakkada Global Oil Palm Limited project. This reform was prompted by revelations of deceit and misappropriation of project funds, which undermined the initiative’s objectives and financial integrity.

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Governor Umo Eno has therefore, directed that all state government shares in SOEs be transferred to the Akwa Ibom Investment Corporation (AKICORP). This consolidation is intended to improve efficiency, transparency, and oversight of state investments.

In a press statement by the state commissioner for information, Ini Ememobong on Wednesday, he highlighted the new steps taken by the governor to reposition the state’s investment portfolios, saying that, the government acknowledges the mismanagement that led to the failure of Akwa Palm Industries Limited. Despite its vast assets, including a 3,000-hectare oil plantation and a 300,000-capacity nursery, the enterprise accumulated significant debts owed to workers and contractors, resulting in its deregistration in 2021.

However, with AKICORP taking charge, the state aims to restore the viability of its investments by adopting stricter accountability measures and fostering sustainable development practices.

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The press statement notes that the significance of the plantation cannot be downplayed, as it spans six communities across three LGAs, from Orukim and Unyenge in Mbo, Etebi Idung Asang, Ntak Inyang and Akwa Ata in EsitEket all the way to Udung Ukpo in Uruefong Oruko. He stressed that with this kind of immense potential of over 200,000 oil palm trees, that revitalizing it could generate employment and boost the local economy.

DDNews was not able to reach AKICORP Chairman, Obong Ide O. Owodiong-Idemeko for comments, but in an economic sense, the restructuring and expanded mandate on state’s investment agency, demonstrates the government’s commitment to tackling financial irregularities and ensuring the long-term success of its enterprises. And by centralizing investment management, the state hopes to attract new investors and restore confidence in its economic initiatives.

According to the government’s statement: “It was the practice of the State Government to appoint individuals holding strategic offices as directors or shareholders in State-Owned Enterprises (SOEs).

“These appointments were made solely in their official capacities and in line with the operational needs of the enterprises. Upon leaving office, such individuals relinquished both their directorships and shareholding responsibilities.

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“Under the current administration, the Governor, Pastor Umo Eno had directed that all State Government shares in SOEs be transferred to Akwa Ibom Investment Corporation (AKICORP). This is to allow for effective and efficient management of all government investments.

“In the specific case of Dakkada Global Oil Palm Limited where Governor Umo Eno was listed during his tenure as Executive Director of Agric Investments in AKICORP, as one of the shareholders. Upon his resignation from office in 2022, he also resigned from all the companies and relinquished the concomitant responsibilities and shares held in trust for the government.

“The Attorney General and Commissioner for Justice had been directed to collaborate with Ministries, Departments, and Agencies to ensure that all government investments within their jurisdiction are brought under the supervision of AKICORP. This directive is already being implemented and soon all the investments of the State Government will be totally managed by AKICORP.

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“We assure our citizens that those who held these offices and shares did so in trust, due to their official, not private capacity, at that time and that the interest of the state in all the companies was and is still very well protected. This administration’s commitment to upholding transparency and accountability in the management of public assets is unshakeable.”