Council To Pay N46.85m Damages

An Osisioma Ngwa High Court in the Osisioma Local Government
Area of Abia, has ordered the Osisioma Ngwa Council to pay N46.85 million damages
to Mgborukwe Enterprises Ltd. for breach of contract.

The court, presided over by Mr Justice Thomas Adiele gave
the order while delivering judgment in suit No. HOS/34/2008 between Mgborukwe
Enterprises Ltd., and Osisioma Ngwa Council.

The award comprised N31. 22 million being the contract sum,
N15.61 million being 50 per cent of the contract sum as compensation and
N10,000 pocket expenses.

The Osisioma Ngwa Local Government had in 2005 awarded a
contract to the claimant for the construction of the Osisioma Motor Park.

The contract was negotiated and agreed on a
build-occupy-transfer arrangement between the two parties.

According to the terms, the contractor was expected to
manage the motor park for a period of 20 years upon completion in order to
recoup his investment from gate fees and other sundry charges.

However, in 2008 the Council under a new leadership
forcefully ejected the contractor from the motor park without recourse to the
subsisting agreement.

The Managing Director of the firm, Chief George Mgborukwe
approached the court after series of failed attempts to settle amicably,
challenging the breach of contract and forceful ejection.

Delivering judgment, Adiele said: “The contract agreement
entered into between the claimant and the defendant dated 26/5/2005 is binding
and enforceable against the defendant irrespective of any change in the
administration of the defendant.’’