An Osun State High Court, presided over by Justice Ayo Oyebiyi, yesterday dismissed a $500 million suit filed against the Osun State government for alleged unlawful termination of the contract of the Ilesa Water project.
It was recalled that Henan Water Conservancy Engineering Bureau Limited and Sagittarius Nigeria Limited, the project contractors, had, through their lawyer, Kunle Adegoke (SAN), dragged the state government to court in suit number HOS/M.205/2021 for unlawful termination of the contract awarded to them in 2019.
In 2016, the Osun State government conceived and embarked on the execution of the Ilesa Water Supply and Sanitation Project, which was funded through a loan from the Islamic Development Bank.
Defence counsel from the Osun Ministry of Justice, Tijani Adekilekun, told the court that though the contract was agreed to be carried out within 24 months, with the time running from the date of handing over the project site to the contractor, the claimants failed to deliver as soon as it was due.
Adekilekun stated further that when the problem of delay in implementing the contract persisted due to the contractor’s inability to produce an approved design, the contractor was issued a notice of termination, rescinded at the intervention of former Governor Adegboyega Oyetola.
He argued that after an additional 12 months, the claimants could still not deliver the consultant’s approved design, so Governor Ademola Adeleke had to terminate the contract on August 16, 2022.
Kola Adegoke (SAN) had sought an interlocutory injunction restraining the Osun State government from executing the project by re-awarding the contract to another contractor.
In his judgement, Ayo Oyebiyi dismissed the application and suit and pronounced that the Osun State government’s termination of the contract was in order. He further directed the government to award the contract to another eligible firm.
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