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Contractor alleges move by BSUDPB to reduce number of properties seized in debt recovery move

Muhab Engineering Nigeria Limited has alleged moves by the Bauchi State Urban Planning and Development Board (BSUDPB) to reduce the number of seized properties in connection with the N54,235,885,15kobo.debt he is trying to recover.

The amount, which includes outstanding principal and interest was awarded in his favour by Justice Mu’azu Abubakar, a judge of the Bauchi State High Court.

The contractor alleges that the BSUDPB is going through admimistrative means instead of going back to the court that ordered him.to seize the properties of the board.

The company has begun execution of the judgement by seizing 13 different vehicles and properties of BSUDPB which were taken to the premises of Bauchi State High Court for auctioning to enable the company recover their money.

Addressing reporters at the premises of the Bauchi State High Court today, the Managing Director of Muhab Engineering Engineer Labbo A kabiru alleged that “the BSUDPB wrote a letter to the Chief Registrer of the State High Court with reference number BSDB/ADM/SMJSC/25/I Dated 27/12/2023, appealing to the chief registrer to look at the difference between the price of the seized properties and the total liabilities to be settled and allow for the release of some vehicles and the total liabilities to be taken to enable the board to continue with some essential services of the government.

The amount to be settled, according to the debtors, is N54,235,885,15K (N54.2mn) the price of the 13 vehicles seized as second hand is N269,500,000,00 (N269.5mn) the price of the new ones is N1,324,023,905,00 (N1.324bn)

Engineer Kabiru said the process their debtors intended to follow in reducing the number of the seized vehicles violated the State High Court order and appealed to the State High Court Judge and all the authorities concerned to ensure that they respect the order of the court not to allow personal interest of the debtors to temper with the court judgement.

“We have even written a letter to the chief judge, because by law the normal thing to do is to go back to court administratively, because when we seized the properties nobody knew their price, and the proper thing to do is to appoint a valuer who will value the properties and put their prices, but the debtors valued the properties themselves.

“There is no law that gives the judgment debtor to do self assessment of the attached property and now revert to the Sheriff for help to release part of the property already attached without paying the judgment sum for the simple reason that the judgment debtor is  the government”.

“Even if the properties taken are above the amount the debtors will pay not all of them will be sold out. They will sell the ones that will recover the money and return the rest to the debtors”

He said “the debtors indicated interest to go on appeal, which is the normal thing, since they want to go on appeal why are they going to reduce the number of the vehicles? They should allow the judge to do it not anybody, in the interest of law justice and equity”

When contacted the Chief Registrar of the State High Court Fatima Abubakar Esq said there is a disagreement between the debtors and the contractor on the execution of the court order. The Judge gave order on the actual amount of money the debtors will pay, which is N54.2mn and value of the 13 vehicles seized is N269.5mn as second hand value, while the brand new value is N1.324bn”

She said by law if a judge gave order it is the responsibilty of the office of the Sheriff Deputy Chief Registrer to execute the judgement, not to go back to the judge again. On this case we have informed the parties, we have allowed their counsels to meet and agree on their difference so that we will reduce the number of the vehicles, and even the one that will be left will be higher than the actual amount of money that the debtors are expected to pay”

It would be recalled that the company sued the BSUDPB before the state High Court over their in ability to pay them the 50% retention money for a contract awarded to the company of Doya Outfall Drainage Channel in Bauchi Metropolis since 18th May 2009, the Job was successfully completed and the company was commended by the project coordinator in a letter addressed to the company with reference BS/CBUDP/DP/ICB/P11/07/Lot/1, dated August 25th, 2011.

But BSUDPB defaulted in paying the company 50% retention money within 28 days as contained in article 43.1 of the contract agreement.

The contractor, who presented dozens of proof of their engagement and agreement papers to support his press briefing, told reporters that after series of delays from the BSUDPB and persistent reminders the board invited their company to a meeting between 7th and 8th January, 2020 aimed at arriving at amicable solution. “We resolved that our company should wave the 50% of the claims and it should be paid within two weeks, but nothing happened. When our company put more pressure the board forwarded their minutes of meeting to the Accountant General of the state on 29th September 2020, and the government carpeted the matter until 12 months later. We continued to remind the defendants, they invited us for a meeting under the State Ministry of Justice but the defendants didnt honour the agreement reached.

He said “The ministry of Justice informed the Secretary to the State Government in a letter with reference MOJ/LAW/S/62/V.II/85: and MOJ/LAW/S/62 dated 11th August,2021 and 22nd November, 2021.”In fact we have been pursuing this issue for 12 years, the defendants were reluctant, they didn’t fulfill any of their promises, that was why we resulted to legal action and the judgement was done in our favour”. 

He said “as at the time our company became due for payment of its claims $1.00 was equivalent to N350.00 now $1.00 is above N1000, which means if our money is going to be paid in Naira it is almost valueless.

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