Foremost Nigeria’s indigenous vehicle manufacturing firm, Innoson Vehicles Manufacturing Company Ltd, IVM, has dragged the Imo State Government to the High Court of Anambra State, Nnewi Division, over a debt of over N2.5billion. IVM sued Senator Hope Uzodinma’s led administration over failure to pay or service the debt of N2,547,666,435.00 (Two Billion, Five Hundred and Forty-Seven Million, Six Hundred and Sixty-Six Thousand, Four Hundred and Thirty-Five Naira).
The Trumpet reliably gleaned that the debt was incurred for the purchase price of the various IVM vehicles and spare parts manufactured, sold and delivered to the State Government which the government has failed to pay despite repeated demands and appeals.
In the suit filed by Prof. Joseph N Mbadugha, SAN, of McCarthy Mbadugha & Co, the counsel to the applicants disclosed that the litigation is coming against the repeated attempts made by the Chairman of the firm, Chief Innocent Chukwuma, to make the Governor pay the company on the vehicles sold and delivered to the State Government.
According to a statement issued to newsmen, Mr Cornell Osigwe, Head Corporate Communications and Affair, IVM, the company and Imo State government discussed and agreed that Innoson Motors would sell various brands of its vehicles to the state government in 2021.
He said “For the avoidance of doubt, sometimes in April 2021, His Excellency, the Executive Governor of Imo State, Senator Hope Uzodinma invited the Chairman/CEO of Innoson Vehicles, Chief Dr Innocent Chukwuma to the Imo State Government House, Owerri where they discussed and agreed that Innoson Vehicles would sell and supply various specifications of its brand of vehicles to the State Government which includes, inter alia;”
He listed the purchased vehicles to include: 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).
Others were 100 units of a complete siren with public addressing system, revolving light, and street police light, two (2) Units of IVM Ambulance Vehicles, 20 Units of IVM G12 MS11 and 20 sets of B. Canopy.
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He added, “The above vehicles which were valued at over N2.5billion ($6.3million) were supplied in good faith to the Imo State Government based on an understanding with the Governor which arose after a special request that Innoson Vehicles grant the State the favour of paying for the vehicles after deliveries to them and which request was granted and honoured.
“The special and privilege request granted to the Governor turned into a nightmare for Innoson Vehicles and Its Chairman after Chief Chukwuma had at various times through several visits, phone calls, messages, and submission of letters requesting payment appealed to the Governor and his conscience to make total payments or set up a payment plan that will offset the debt.
“The inability of the State Government to pay the aforesaid purchase price of the vehicles supplied has resulted in Innoson Vehicles having difficulties in fulfilling its loan repayment obligations to Keystone Bank Limited and Bank of Industry.
“These banks granted their credit facilities at the rate of 10% interest and other fees therein. More so, it has led to the loss of profit arising therefrom and the accruing interest.
“It is also interesting to note that as of July 27th, 2022, the over N2.5B worth of vehicles supplied to Imo State Government in April 2021 under the leadership of Hope Uzodinma with a dollar value of $6.3M is now worth $3.8M. Even if the money is paid today, the value of the money has depreciated by over 40%.”
Osigwe hinted that the company approached the court to slam a lawsuit of over ₦2.5billion against the Imo State Government with an interest rate of 10% on the entirety of the sum claimed at the High Court.
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