Contractor to take over Bauchi gov’t properties over unpaid debt
The Bauchi State High Court has ruled that a contractor with the State, Muhab Engineering Nigeria Limited, should take over some properties belonging to the State Urban Planning and Development Board (BSUDPB) to recover N62,545,051.19 debt owed by the Board.
Under the authority of Justice Mu’azu Abubakar, the Bauchi State High Court authorized the company to claim specific assets of the Board due to its outstanding debt.
Consequently, the company, acting in accordance with the judgment in their favor, took possession of 13 vehicles and properties belonging to the Board and relocated them to the premises of the High Court for auctioning, allowing the company to recover the owed sum.
A spokesperson for the Managing Director of Muhab Engineering, Alhaji Labbo Kabiru, informed journalists that the company had filed a lawsuit against the BSUDPB before the State High Court due to their failure to remit 50 percent retention funds for a contract awarded to the company for the Doya Outfall Drainage Channel in Bauchi Metropolis since 18th May 2009.
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Kabiru further clarified that the project was completed, and the company had been praised by the project coordinator in a letter, dated August 25th, 201, and addressed to the company with reference BS/CBUDP/DP/ICB/P11/07/Lot/1.
“But unfortunately BSUDPB defaulted in paying the company 50 percent retention money within 28 days as contained in article 43.1 of the contract agreement, for that our company demanded for the payment of 50 percent of the retention money with a prevailing interest rate of 28 percent for commercial borrowing and the contractor can demand to be paid in any currency,” he said.
He said “The ministry of Justice informed the Secretary to the state government in a letter with reference MOJ/LAW/S/62/V.II/85: and MOJ/LAW/S/62 dated 11th August, 2021 and 22nd November, 2021, in fact we have been pursuing this issue for 12 years, the defendants were reluctant, they didn’t fulfill any of their promises, that was why we resulted to legal action and the judgment was done in our favour,” he said.
He said as at the time the company was due for payment, $1 was to N350 which is $1 is over N1000 “this means if our money that is going to be paid in Naira it is almost valueless.”
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