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Contractors sue Energy Commission over N8.9bn debt

By on December 3, 2013

The Association of Rural Electrification Contractors of Nigeria has dragged the Energy Commission of Nigeria and the Ministry of Finance before an Abuja Federal High Court over N8.9bn debt.

Those listed as defendants in the suit are the ECN, the Federal Ministry of Finance and the Attorney-General of the Federation and Minister of Justice.

In a statement of claim filed by its counsel, Prof. Yemi Akinseye-George, SAN, the association is asking the court to order the defendants to pay the debt.

According to the association, the ECN owed the contractors N380m in 2009; N2.1bn in 2011 and N6.3bn in 2012.

The association also asked for an injunction to restrain the ECN and its agents from awarding contracts already advertised in the Federal Tenders Journal between May 6 and May 19, 2013, or any contract whatsoever until the N8.9bn debt was paid.

The association, in its statement of claim, averred that the defendants had refused to pay the outstanding N8.9bn even after receiving several letters requesting the payment of the debt.

Instead of paying the debt, according to the association, the ECN went ahead to award series of contracts to other contractors, on a regular basis.

The association’s Chairman, Alhaji Isa Badamasi, in an affidavit in support of the originating summons, stated that the defendants’ refusal to pay the debt had caused untold hardship to his members, including the accumulation in bank interest for loans used in executing the projects; pressure from suppliers and accumulated staff salaries and allowances.

The contractors in the association include AMTESS Nigeria Ltd, Borno Engineering Supply Technical Company Limited and Durat Civic Nigeria Company Limited.

 

 

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