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Contractor Threatens To Sue Osun Govt. Over N570m Airport Debt

  Kazeem Badmus THE contractor handling construction of the MKO Abiola International Airport at Ido-Osun, State of Osun, JM & AS Limited, has demanded the payment of a sum of N570.2m from the state government as debt expended on the project or be ready for court action. The firm gave the state government two weeks…”
Yusuf
August 27, 2022 8:41 am

 

Kazeem Badmus

THE contractor handling construction of the MKO Abiola International Airport at Ido-Osun, State of Osun, JM & AS Limited, has demanded the payment of a sum of N570.2m from the state government as debt expended on the project or be ready for court action.

The firm gave the state government two weeks to pay the debt, following reports that the airport has been handed over to the Nigeria Air Force.

Counsel for the firm, Mr J. J. Usman (SAN), in a letter to the governor, frowned on the handover of the airport to the NAF which it described as a unilateral decision.

He said it was improper for the state government to abandon the agreements reached with the company on the job without paying for jobs done.

The letter reads in part, “It is instructive to note that the sum due to our client and outstanding debt has remained unpaid after several demands, leading our client to vacate the site since it became impossible for our client to continue with the work, owing to the failure and refusal of the government to pay the outstanding debt.

“Our client further informed us that having served the government notices of intention to vacate the site due to government failure to pay, they indeed vacated the site sometimes in 2017.

“While our client was waiting for the government to comply with the terms of the contract by paying for Certificates Nos 4 and 5, and to enable them return to site and continue with their work, the state government has curiously and purportedly re-awarded the contract or handed-over the site to a different company other than Awol International Limited as contained in the MoU despite the subsisting of the contract of our client, which has not been terminated.

“It is our client’s instruction to us to demand and we hereby demand from you the following: The immediate payment of our client’s outstanding balance of N570,231,101.94, being the balance for the interim Certificate No. 4 and Interim Certificate No. 5 outstanding as contained in the final account.”

“And also your government to provide the enabling environment for our client to mobilise back to site as our client’s contract is still subsisting and our client is willing, able and capable of completing the construction of the Moshood Abiola International Airport Osogbo, Osun State.

 

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