The Bauchi State Urban Planning and Development Board (BSUPDB) is now having properties seized in order to enforce the verdict of the Bauchi High Court, which is chaired by Justice Mu’azu Abubakar, in order to recoup a debt of N62,545,051.19.
Muhab Engineering Nigeria Limited is regaining possession of BSUPDB’s assets in order to pay the contractor N62,545,051.19 in principal and interest.
Thirteen vehicles and other BSUPDB properties that were being held throughout the trial at the Bauchi State High Court premises have already been taken by the engineering company. To pay off its debt, Muhab Engineering plans to auction these seized goods.
In 2011, Muhab Engineering Nigeria Limited filed a lawsuit against BSUPDB for not paying the business 50% of the retention money for a contract that was awarded for the Doya Outfall Drainage Channel on May 18, 2009, in Bauchi Metropolis.
After the vehicles and properties belonging to BSUPDB were seized, Alhaji Labbo A. Kabiru, the Managing Director of Muhab Engineering, addressed the media and said that the company had acted in accordance with the court’s ruling.
Kabiru clarified that the project was effectively finished by the company, and the project coordinator had given them a praise for a job well done. However, as stated in article 43.1 of the contract agreement, BSUPDB failed to pay the company 50% of the retention money within the allotted 28 days.
He stated, “The contractor has the right to demand payment in any currency. As a result, our company demanded, through the court, payment of 50% of the retention money with a prevailing interest rate of 28% for commercial borrowing.”
Kabiru revealed that following multiple delays and reminders from BSUPDB, the board called their company to a meeting on January 7th and 8th, 2020, with the intention of reaching a mutually agreeable conclusion. Kabiru was supported by court certifications and a plethora of engagement documents.
“We requested payment within two weeks and consented to waive half of the claims. But even after we pushed and demanded that the board send the state’s accountant general the minutes of their September 29, 2020, meetings, the government did nothing for another year.
He went on to say, “The defendants were unwilling to keep any pledges they made, as the Ministry of Justice told the Secretary to the state government in letters dated August 11, 2021, and November 22, 2021. Our final option after a 12-year search was to go to court, and we were successful in getting a ruling in our favor.
As native contractors, Kabiru pointed out that they purposefully refrained from naming the World Bank in the legal action in order to keep ongoing water projects in Bauchi and other projects supported by the World Bank from being disrupted.
Barrister UB Babayo, the BSUDPB’s counsel, declined to speak further at this time, stating that the case is still being reviewed by senior Ministry of Justice personnel.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 