Muhab Engineering Nigeria Limited seized certain government-owned property in Bauchi State.
The State Urban Planning and Development Board (BSUDPB) has assets that should be taken over by a contractor with the State, Muhab Engineering Nigeria Limited, in order to collect N62,545,051.19 that the Board owes. This decision was made by the Bauchi State High Court.
The Bauchi State High Court's Justice Mu'azu Abubakar decided that the corporation could take possession of certain of the Board's assets due to its outstanding debt.
In order to enable the business to recoup its funds, the firm subsequently took 13 vehicles and other assets belonging to the Board and transported them to the High Court's facilities for auction.
Journalists were informed by a spokesperson for Muhab Engineering's managing director, Alhaji Labbo Kabiru, that the company had filed a lawsuit against the BSUDPB in the State High Court due to the latter's failure to provide the required 50% retention money for a contract that had been granted to the company for the Doya Outfall Drainage Channel in Bauchi Metropolis on May 18, 2009.
Kabiru claims that the project coordinator congratulated the company in a letter dated August 25, 2021, with reference BS/CBUDP/DP/ICB/P11/07/Lot/1, after the job was finished.
"Unfortunately, as stated in article 43.1 of the contract agreement, BSUDPB failed to pay the company 50% of the retention money within 28 days. As a result, our company requested payment of 50% of the retention money at the current rate of 28% for commercial borrowing, with the contractor having the option to request payment in any currency," the speaker stated.
"The defendants were reluctant and broke their promises, which is why we took legal action and the judgment was rendered in our favor," 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," he said.
"This means that if our money that is going to be paid in Naira is almost worthless," he added, adding that at the time the company was scheduled for payment, $1 was to N350, which is $1 is over N1000.
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