The Akwa Ibom State Government has directed the transfer of all its shares in State-Owned Enterprises (SOEs) to the Akwa Ibom Investment Corporation (AKICORP).

This was announced in a press release issued by the state commissioner for information, Ini Ememobong on Wednesday.

The state government indicated that Governor Umo Eno directed that the administration of government investments be centralised under AKICORP in order to improve efficiency and accountability.

The state government’s reform was sparked by a damning report that revealed deceit and misappropriation of funds within the Dakkada Global Oil Palm Limited project.

Essentially, the project’s funds were allegedly used for unauthorized purposes, which is a classic case of misappropriation – when someone entrusted with money or assets uses them for their own benefit.

This move by the state government aims to address the financial irregularities and ensure transparency in the project’s management.

According to data from the state’s 2020 audited financial statements, Akwa Palm Industries Limited had an investment value of N146.64 million until 2021, with the Akwa Ibom State Government owning 95.42 per cent of the shares.

The investment, incorporated on February 18, 1988, at the Corporate Affairs Commission (CAC) with registration number 109111, is on a 3,000-hectare oil plantation and has over 200,000 oil palm trees and a 300,000-capacity nursery for oil palm seedlings.

The plantation stretches across six communities in three local government areas (LGAs) – Orukim and Unyenge in Mbo, Etebi Idung Asang, Ntak Inyang and Akwa Ata in EsitEket, and Udung Ukpo in Uruefong Oruko.

However, the business failed due to mismanagement, leaving a multi-million-dollar debt owed to workers and contractors. This led the government to strike off the investment at CAC in early 2021.

To revive the fortunes of the enterprise, the government  directed that all state government shares in SOEs be transferred to Akwa Ibom Investment Corporation (AKICORP).

The government’s statement reads: “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.

“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.

“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.”