Business goes sour: Innoson sues Hope Uzodinma, Imo Govt over N2.5bn debt
CHIGOZIE AMADI
More than one year after supplying sundry vehicle models to the Imo State Government, Nnewi-based Innoson Innoson Vehicles Manufacturing (IVM) has filed a suit against Gov Hope Uzodinma and his administration to recover the total cost of the automobiles valued at over N2.5billion.
The indigenous auto maker, which is a member of the Innoson Group, said in a statement that it resorted to litigation following the failure of the Imo State Government to pay or service the debt of N2,547,666,435.00 (about $6.3m), being the purchase price of the various IVM Vehicles including their parts which IVM manufactured, sold and delivered to it.
The statement signed by Cornel Osigwe, Head, Corporate Communications and Affairs for Innoson Group, said the lawsuit became the last resort, because “the Imo State Governor or its government has refused and failed to pay the debt despite repeated demands and appeals.”
Osigwe also disclosed that the suit was filed by Prof Joseph N Mbadugha, SAN, of McCarthy Mbadugha & Co, the counsel to Innoson Vehicles, after “repeated attempts made by the Chairman/CEO of IVM, Chief Dr. Innocent Chukwuma, to the governor urging him to pay the company.”
According to him, the deal was struck sometime in April 2021, when Gov. Uzodinma invited Chief Chukwuma to the Imo State Government House, Owerri where they discussed and agreed that IVM would sell and supply various specifications of its brand of vehicles to the Imo State Government.
Specifically, the vehicles include 70 units of Innoson five-seater double cabin pick-up (IVM Carrier) 4WD; 10 units of Innoson five-seater double cabin military pick up (IVM G12); 10 units of Innoson five-seater single cabin military pick-up (IVM G12); and 100 units of a complete siren with public address system, revolving light, and street police light;
The UVM models purchased by Imo state also included two units of IVM ambulance vehicle; 20 units of IVM G12 MS11; and 20 sets of B. canopy
The 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.
Innoson Vehicles lamented that special privilege and favour granted to the governor following his request, “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.
When Saturday Sun got wind of the debt recently and contacted the Chief Press Secretary to the Imo State Governor, Oguike Nwachukwu, he dismissed it as untrue.
But, Osigwe insisted the truth about the deal would be decided by the court .
He said: “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 27, 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 percent.”
“tt 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 percent on the entirety of the sum claimed at the High Court of Anambra State, Nnewi Division.”
