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Innoson Vehicles replies Imo govt over alleged contract breach

Nigeria’s indigenous vehicle manufacturing company, Innoson Vehicles, has said the Imo State Government did not pay any amount since the delivery of the purchased vehicles in April 2021.

The Star had reported Innoson Vehicles filed a suit before the Anambra State High Court in Nnewi over the alleged failure of the Imo State Government to pay the N2.5 billion debt after the government purchased vehicles from the company.

The company alleged that the state government, after purchasing the vehicles, failed to pay the debt despite repeated demands and appeals.

In its reaction, the Imo State Government said the management of the company breached the contractual agreement with the government over the sale and maintenance of the vehicles.

However, the company, in a statement issued on Monday by its Head, Corporate Communications and Affairs, Cornel Osigwe, said Innoson Vehicles did not breach any agreement as alleged by the Imo State Government.

The statement read: “Our attention has been drawn to a statement purportedly released by the Commissioner for Information and Strategy, Hon. Declan Emelumba on behalf of the Imo State Government.

“The said statement was unscrupulously written to water down the facts and substance stated in our earlier statement. We do not wish to join words with Imo State Government as we now have it on good authority that it has engaged its e-dogs to discredit our brand in the media space.

“The matter is now before the courts and we have always believed in the integrity of the judiciary to do the right thing when facts are stated.”

The company added that it did not agree with the Imo State Government to set up a maintenance and mobile workshop in Owerri, the state capital.

It stated: “For the avoidance of doubt, Innoson Vehicles have various vehicle servicing partners in Imo State where Innoson Vehicles are maintained and serviced.

“More interestingly, Innoson Vehicles has its unique mobile workshop that provides maintenance and vehicle servicing to its clients.

“To the best of our knowledge, Innoson Vehicles has always maintained and serviced the vehicles supplied to the Imo State Government up to the stage the company decided to disengage its maintenance and servicing as a result of non-payment of servicing parts used, which have risen to above N7m.

“This particular debt, among others, is what Innoson Vehicles has detailed to recover from the law court.

“Innoson Vehicles is not a charitable organisation but a business concern that needs money to stay in business.

“The statement on servicing of debt in all its entirety is false. Note especially that the mode of transaction Innoson Vehicles did with Imo State Government is not only peculiar with the state, but Innoson Vehicles have also used a similar model to many of its clients, including state governments.

“We have some clients who couldn’t pay at once but entered a payment plan with the company even up to a 12-month plan. Since the vehicles were delivered in April 2021, the state government hasn’t paid one naira,” the company added.

The Star