Innoson Vehicles sues Imo govt over N2.5bn debt

Imo State Governor, Hope Uzodimma

Nigeria’s indigenous vehicle manufacturing company, Innoson Vehicles, has 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.

Innoson Vehicles alleged that the Imo State Government, after purchasing the vehicles, failed to pay the debt despite repeated demands and appeals.

The company, in the suit filed by its counsel, Prof. Joseph N Mbadugha, SAN, urged the Imo State Governor, Sen. Hope Uzodinma, to pay the company for the vehicles sold, and delivered to the state government.

The Head, Corporate Communications and Affairs, IVM Innoson Group, Cornel Osigwe, who made this known via a statement made available to The Star on Friday, said Governor Uzodinma, in April 2021, invited the Chairman/CEO of Innoson Vehicles, Dr. Innocent Chukwuma, to the Imo State Government House in Owerri, the Imo State capital “where they discussed and agreed that Innoson Vehicles would sell and supply various specifications of its brand of vehicles to the State Government which 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); 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; and 20 sets of B. Canopy.

“The above vehicles which were valued at over N2.5B ($6.3M) 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 honored.

“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%.

“It is therefore based on this premise that Innoson Vehicle Manufacturing Company Ltd has begun the process of recovering its debts against the Imo State Government by slamming a lawsuit of over N2.5B with an interest rate of 10% on the entirety of the sum claimed at the High Court of Anambra State, Nnewi Division.

The Star