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Court orders contractor to take over Bauchi govt properties over N62.5million debt



The Bauchi State High Court has ruled that a contractor with the State, Muhab Engineering Nigeria Limited, should take over some properties belonging to the State Urban Planning and Development Board (BSUDPB) to recover N62,545,051.19 debt owed by the Board. Justice Mu’azu Abubakar of the Bauchi State High Court ruled that the company seize some assets of the Board over its unpaid debt.

Subsequently, the firm, while executing the judgment in their favour, seized 13 vehicles and properties of the Board and moved them to the premises of the High Court for auctioning to enable the company to recover its money.

A representative of the Managing Director of Muhab Engineering, Alhaji Labbo Kabiru told journalists that the company had sued the BSUDPB before the State High Court over their in ability to pay them the 50 percent retention money for a contract awarded to the company of Doya Outfall Drainage Channel in Bauchi Metropolis since 18th May 2009.

According to Kabiru, the work was completed and the company was commended by the project coordinator in a letter addressed to the company with reference BS/CBUDP/DP/ICB/P11/07/Lot/1, dated August 25th, 201.

“But unfortunately BSUDPB defaulted in paying the company 50 percent retention money within 28 days as contained in article 43.1 of the contract agreement, for that our company demanded for the payment of 50 percent of the retention money with a prevailing interest rate of 28 percent for commercial borrowing and the contractor can demand to be paid in any currency,” he said.

He said “The ministry of Justice informed the Secretary to the state government in a letter with reference MOJ/LAW/S/62/V.II/85: and MOJ/LAW/S/62 dated 11th August, 2021 and 22nd November, 2021, in fact we have been pursuing this issue for 12 years, the defendants were reluctant, they didn’t fulfill any of their promises, that was why we resulted to legal action and the judgment was done in our favour,” he said.

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He said as at the time the company was due for payment, $1 was to N350 which is $1 is over N1000 “this means if our money that is going to be paid in Naira it is almost valueless.”

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