As a result of the Imo State Government’s failure to pay or service the debt of N2,547,666,435.00 (Two Billion, Five Hundred and Forty-Seven Million, Six Hundred, Six Thousand, Four Hundred and Thirty-Five Naira), which represents the purchase price of the various IVM Vehicles including their parts which IVM manufactures, Nigeria’s indigenous vehicle manufacturing company, Innoson Motors Manufacturing (IVM) has filed a lawsuit for the recovery.
Basic Facts
The lawsuit was brought by Prof. Joseph N. Mbadugha, SAN, FCPA of McCarthy Mbadugha & Co, the legal representative for Innoson Motors against the State
The filling of the suit was reportedly following Governor Hope Uzodinma`s failure to honour payment request from Chief Dr. Innocent Chukwuma OFR, Chairman of Innoson Motors Manufacturing, for the vehicles the company sold and delivered to the State Government.
Catch-up
According to Innoson`s account of the matter, sometimes in April 2021, his Excellency, the Executive Governor of Imo State, Senator Hope Uzodinma invited the Chairman/CEO of Innoson Motors, Chief Dr. Innocent Chukwuma to the Imo State Government House, Owerri.
In the meeting they discussed and agreed that Innoson Vehicles would sell and supply various specifications of its brand of Vehicles to the State Government, which includes:
- 70 units of Innoson 5 Seater double cabin pick-up (IVM Carrier) 4WD
- 10 units of Innoson 5- Seater double cabin military pick up (IVM G12)
- 10 units of Innoson 5 seater single cabin military pick-up (IVM G12)
- 100 units of a complete siren with public addressing system, revolving light, and street police light;
- 2 Units of IVM Ambulance Vehicles
- 20 Units of IVM G12 MS11
- 20 sets of B. Canopy
The company claims that the aforesaid vehicles, which were valued at over N2.5B ($6.3M), were provided in good faith to the Imo State Government.
Background
The Innoson boss, Chukwuma also says he repeatedly pleaded with the governor and to make full payments or set up a payment plan that will offset the debt through numerous visits, phone calls, messages, and submission of letters requesting payment.
Notwithstanding this alleged special and privileged concession granted to the governor, Innoson Motors and its Chairman alleges that Governor Uzodinma failed to honour the payment or set up any structured payment at all.
Innoson Motors also claim that the company is having trouble repaying its loans to Keystone Bank Limited and Bank of Industry as a result of Imo State Government’s liability in respect of the delivered vehicles.
Takeaway
According to the company, the over N2.5B worth of automobiles which was delivered in April 2021 with a dollar value of $6.3M are now worth $3.8M.
Therefore, even if the money is paid today, its worth has decreased by more than 40%.
Innoson Motors Manufacturing Company Ltd has therefore started the process of collecting its debts from the Imo State Government by filing a case in the High Court of Anambra State, Nnewi Division, for over N2.5B with an interest rate of 10% on the total amount sought.
