Firm Demands N156bn Compensation For Contract Breach

A construction company, Safety Aids Golden Profile Ltd, is seeking N156 billion in compensation from the Oyo State Government for alleged breach of contract.

The Tide reports that the company on Tuesday filed a suit before Justice Mojeed Isola of the state High Court sitting in Iyaganku, Ibadan.

Other defendants joined in the suit are the Oyo state Road Traffic Management Authority, the Commissioner for Lands, Survey and Housing, the Commissioner for Works and Transport and the Commissioner for Justice.

The counsel to the complainant, Mr. Tunji Ogunrinde, told the court that the former governor of the state, Otunba Adebayo Alao-Akala, had in 2010 entered into a contractual agreement with the company.

According to the terms of the agreement, Ogunrinde said the company would build and operate motor parks in certain areas of the state.

He added that the agreement was to run for a period of 25 years after which the company would transfer the   motor parks to the state government.

Ogunrinde explained further that the initiative was on course until the present administration came on board.

He alleged that the Abiola Ajimobi administration deliberately disregarded all the terms of the contract by re-awarding  it  to another  company.

The counsel further stated   that based on the 2010 agreement, his client had paid a certain amount of money to the coffers of the state government which had yet to be recovered.

He said the state government should pay the N156 billion as compensation for breaching the terms of the said agreement.

The state government, represented in court by a legal team from the Ministry of Justice, requested for an adjournment to enable it prepare its defence while Isola adjourned the case to Sept. 19 for further hearing.