The Directors and Management of Enyimba Automated Shoe Company (ENASCO) has described as hasty the announcement that Abia State Government has revoked it’s land title and reclaimed assets belonging to ENASCO saying, the action was unfair, unjust and must have been based on misinformation.

 

This is contained in a release signed by the company lawyer, Barrister C. C. Atasie, in response to Abia state government pronouncement, detailing the reasons for the revocation of the company land, it’s titles and reclamation of assets owned by Abia state government.

 

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It will be recalled that in a statement signed by Ukoha Njoku Ukoha, the Chief Press Secretary to the Abia State Governor Abia State, the Abia Government stated that it has revoked the land title granted to ENASCO and would move to reclaim all Abia State Government resources and assets contributed to the Company. “This decision followed a comprehensive regulatory, financial and operational review undertaken by reputable Big Four professional service firms, which unravelled significant discrepancies and corporate governance-related issues within ENASCO”, Ukoha stated

 

While debunking the Abia Govt’s statement which it argues could create the wrong impression to the public, ENASCO maintained that the true position is that besides the fact that both are still engaging as shareholders to get a workable solution to the issues at stake, both parties still have 12 days away from the deadline imposed by government officials present to resolve issues.

The Company further affirmed that at no time did the Directors of Enyimba Automated Shoe Company (ENASCO) deny the shares allotted to the Government.

 

“This has been a discuss between the Government and the Directors. While the Government representatives have asked and/or requested for more shares the Directors have always advised on the need for private participation to be higher than that of the Government in the Company

“Since the issue is restructuring of Shares and the Directors have agreed to a reasonable restructuring, which was discussed in the meeting we should professionally resolve all issues to the progress of the company”, the company stated.

 

The ENASCO management further argued that the government position reveals a total lack of knowledge of the history of the company which would have explained why the structures in place are the best given the circumstances.

 

Excerpts from the statement by ENASCO’s Board and Management reads as follows:

“The true position is that there was an emergency general meeting summoned by the Honourable Commissioner for Trade, Commerce and Industry which meeting held on the 23rd day of April, 2025 at Umuahia. Both parties were at the meeting including the Commissioner himself and the Honourable Attorney General of Abia State and Commissioner for Justice. The Government Technical Team was also there. This meeting held two days ago and we are still 12 days away from the deadline imposed by government officials present to resolve issues.

“The meeting lasted for over 3 hours as the parties made their different and various positions clear. At the end of the meeting it was resolved that the parties are to within 14 days conclude all arrangements and calculations and come to a reasonable conclusion on all issues (primarily shareholding and board seats). This was particularly so as there were discrepancies in the “Report” of the Technical Team from the Government side and which report was not made available to the Directors.

 

“Worthy of note is the fact that at no time did the Directors of Enyimba Automated Shoe Company (ENASCO) deny the shares allotted to the Government. This has been a discuss between the Government and the Directors. While the Government representatives have asked and/or requested for more shares the Directors have always advised on the need for private participation to be higher than that of the Government in the Company. Since the issue is restructuring of Shares and the Directors have agreed to a reasonable restructuring, which was discussed in the meeting we should professionally resolve all issues to the progress of the company.

“It is very important to State that the Board and Management of ENASCO have always been open to engage with the Government. At the inception of the present administration in the state, the representatives of the Board approached the Government to avail it of all the information and issues pertaining ENASCO. The board requested the Government to show more interest in the activities of the company. It is equally important to state that since the inception of this factory none of the board members have earned any money from the activities of the company, as the company is still in the formation stage.

 

“It is then very surprising to the Board members of Enyimba Automated Shoe Company (ENASCO) to wake up this morning to read the piece which seems to portray a unilateral decision of the Government different from the agreement at the last meeting held on the 23rd day of April 2025. The heat is totally avoidable as we can engage as shareholders and agree way forward.

“ENASCO being a shoe factory requires the strategic support of the state government to engender confidence of the stakholders and customers. Presently, there is work going on at the factory which order ought to be delivered in a couple of days. We hope this does not disrupt activities in the factory. We implore the agents of the state government to consider the implications of such negative narratives on the activities of a company that has investment of the private sector.

 

“Just to reiterate here that the challenge is basically how to reflect the true value of the investments made by Government without the government having controlling presence over the affairs of the company especially as this negates the original principles for its acceptance and the admission of private sector investors (especially the core investor). We mentioned some of the ways to achieve this at the emergency meeting and had been directed by the government officials present to ensure we conclude with their technical team within two weeks and this is barely two days from the meeting. The investments by the private sector are easy to verify and the basis for valuation up for discussion. The franchise called Enasco has come to stay and we should not let any investors suffer for taking risks with this entity.

“While as a Board our representatives at the meeting are yet to fully brief the Board members in order to take a decision in line with the resolution reached at the meeting, we assure the Government and the general public that the vision of making ENASCO a premier Shoe manufacturing company will be realized”.