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Foremost Nigerian Indigenous motor manufacturing firm, Innoson Automobiles Manufacturing (IVM) has sued the Imo State Authorities below the management of Governor Hope Uzodinma, for N2.5 billion.
The lawsuit by the auto agency is over the failure of the Imo State Authorities to pay or service the debt of N2,547,666,435 being the acquisition worth of the varied IVM Automobiles together with their elements which IVM manufactured, offered and delivered to the State Authorities however Imo State Governor or its authorities has refused and didn’t pay identical regardless of repeated calls for and appeals.
This disclosure is contained in a press launch issued by the Head of Company Communications and Affairs of IVM Innoson Group, Cornel Osigwe, on Friday, July 29, 2022.
Osigwe within the assertion stated that the lawsuit which was filed by Prof Joseph N Mbadugha, SAN, FCPA of McCarthy Mbadugha & Co, the counsel to Innoson Automobiles, is coming towards repeated makes an attempt made by the Chairman of Innoson Automobiles Manufacturing, Chief Dr. Harmless Chukwuma OFR, to the Governor urging him to pay the corporate on the autos offered, and delivered to the State Authorities.
How the money owed had been incurred
It said that someday in April 2021, His Excellency, the Government Governor of Imo State, Senator Hope Uzodinma invited the Chairman/CEO of Innoson Automobiles, Chief Dr. Harmless Chukwuma to the Imo State Authorities Home, Owerri the place they mentioned and agreed that Innoson Automobiles would promote and provide varied specs of its model of Automobiles to the State Authorities. The autos provided included;
‘’70 models of Innoson 5 Seater double cabin pick-up (IVM Service) 4WD, 10 models of Innoson 5- Seater double cabin army choose up (IVM G12), 10 models of Innoson 5 seater single cabin army pick-up (IVM G12).
‘’Others are 100 models of an entire siren with public addressing system, revolving gentle, and road police gentle, 2 Models of IVM Ambulance Automobiles, 20 Models of IVM G12 MS11 7. 20 units of B. Cover.’’
Osigwe stated that IVM reached an settlement with the Imo State Authorities that the cost for the autos can be made after deliveries, an settlement that was later reneged by the state authorities.
The assertion added, ‘’The above autos which had been valued at over N2.5 billion ($6.3M) had been provided in good religion to the Imo State Authorities based mostly on an understanding with the Governor which arose after a particular request that Innoson Automobiles grant the State the favour of paying for the autos after deliveries to them and which request was granted and honoured.
‘’The particular and privilege request granted to the Governor changed into a nightmare for Innoson Automobiles and Its Chairman after Chief Chukwuma had at varied occasions by means of a number of visits, telephone calls, messages, and submission of letters requesting cost appealed to the Governor and his conscience to make complete funds or arrange a cost plan that may offset the debt.’’
IVM unable to satisfy mortgage reimbursement obligations, claiming curiosity on debt
IVM stated that the lack of Imo State Authorities to satisfy up with its debt obligation to it has resulted in its having difficulties in fulfilling its mortgage obligations to some banks, including that even the worth of the anticipated cost has depreciated considerably attributable to a discount within the worth of the naira.
- It said, ‘’The lack of the State Authorities to pay the aforesaid buy worth of the autos provided has resulted in Innoson Automobiles having difficulties in fulfilling its mortgage reimbursement obligations to Keystone Financial institution Restricted and Financial institution of Trade.
- ‘’These Banks granted their credit score amenities on the fee of 10% curiosity and different charges therein. Extra so, it has led to the lack of revenue arising therefrom and the accruing curiosity.
- ‘’It’s also attention-grabbing to notice that as of July twenty seventh, 2022, the over N2.5 billion value of autos provided to Imo State Authorities in April 2021 below the management of Hope Uzodinma with a greenback worth of $6.3 million is now value $3.8 million.
- ‘’Even when the cash is paid as we speak, the worth of the cash has depreciated by over 40%. It’s due to this fact based mostly on this premise that Innoson Car Manufacturing Firm Ltd has begun the method of recovering its money owed towards the Imo State Authorities by slamming a lawsuit of over N2.5 billion with an rate of interest of 10% on everything of the sum claimed on the Excessive Court docket of Anambra State, Nnewi Division.’’
What you need to know
- Innoson Car Manufacturing Firm Restricted. (Generally shortened to IVM) is a Nigerian car producer headquartered in Nnewi, Anambra State and was based by Chief Harmless Chukwuma Nwala.
- Innoson Car Manufacturing is thought to be the most important indigenous car manufacturing agency and produces 70% of the automotive elements regionally, whereas the remaining is sourced from Japan, China, and Germany.
- This isn’t the primary time that Innoson Car is concerned in a significant authorized battle with a significant establishment.
- Innoson had been concerned in a authorized battle with GTB since 2011 over claims and counterclaims of loans between the car manufacturing firm and the financial institution over a N2.4 billion judgement and a 22% accrued curiosity every year
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