The Imo State Government has described as “distasteful and cheap blackmail” the claim by Innoson Vehicles that the state is owing the company N2.5 billion being cost of the vehicles it supplied some months ago.
The Imo State Government said the company’s claims were “half truths” intended to impugn on the integrity of the government for ulterior motives.
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.
Innoson Vehicles alleged that the Imo State Government, after purchasing the vehicles, failed to pay the debt despite repeated demands and appeals.
Reacting to the development, the Imo State Commissioner for Information and Strategy, Hon. Declan Emelumba, in a statement recently issued by the Chief Press Secretary and Media Adviser to the Governor, Oguwike Nwachuku, deplored the manner Innoson Vehicles has been going about the recovery of the “so-called debt”.
Emelumba said the state government bought vehicles worth over N5 billion from Innoson Vehicles and has so far paid them N3.5 billion.
The commissioner said contrary to the claim of the company, the said N2.5 billion was the balance due from the original value of the purchase, adding that the company for reasons best known to the management, decided to “hide this fact from the public”.
Emelumba insisted that the total value of the vehicles supplied was in excess of N5 billion, noting that the state government has been servicing the debt since then.
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He said the management of Innoson Vehicles was the one that breached the contractual agreement with the Imo State Government regarding the sale and maintenance of the vehicles.
According to him, there is a clause in the purchase agreement stipulating the siting of a maintenance workshop in Owerri and a mobile workshop as well, by Innoson Vehicles, for the maintenance of the vehicles.
He noted that in spite of the fact that the company breached the agreement, the state government has been servicing the debt and still maintaining the vehicles, saying more than 70 per cent of the vehicles have already broken down.
Emelumba added that both the threat by the company and resort to media trial of the government were in “bad faith”.
“It appears the company is out to rubbish the integrity of the government, otherwise it would not have twisted the facts of the case and published same concerning this honest business transaction, even when it failed to show the public the terms of the contract and the clauses the government breached therein.
“The whole thing smacks of mischief and bad faith,” the commissioner stated.
He further stated that Innoson Vehicles had not exhausted all means of negotiation before threatening the government with a law suit.
“The mischievous resort to media trial has confirmed that the company is more interested in compromising the integrity of the government rather than being paid its outstanding balance from the contract sum,” Emelumba said.
The commissioner added that although no court process has been served, the Imo State Government would “meet the company in court as soon as a process is served”.
