Firm Seizes Bauchi Agency’s Vehicles, Others Over N62m Debt

The ruling of the Bauchi High Court, presided over by Justice Mu’azu Abubakar, is currently being enforced through the seizure of properties belonging to the Bauchi State Urban Planning and Development Board (BSUPDB) to recover a debt totalling N62,545,051.19.

Muhab Engineering Nigeria Limited is seizing BSUPDB’s properties to recover this outstanding debt, comprising N62,545,051.19 in principal and interest owed to the contractor.

The engineering company has already seized 13 different vehicles and other BSUPDB properties, housed during the trial at the Bauchi State High Court premises. Muhab Engineering intends to auction these seized items to reclaim its debt.

Muhab Engineering Nigeria Limited initiated legal action against BSUPDB in 2011 over the board’s failure to pay the company 50% retention money for a contract awarded for the Doya Outfall Drainage Channel in Bauchi Metropolis on May 18, 2009.

Speaking to journalists after the seizure of BSUPDB’s vehicles and properties, Alhaji Labbo A. Kabiru, the representative of Muhab Engineering’s Managing Director, stated that their action was in compliance with the court’s judgment.

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Kabiru explained that the company had completed the project successfully and received a commendation from the project coordinator for a job well done. However, BSUPDB defaulted on paying the company 50% retention money within the stipulated 28 days, as outlined in article 43.1 of the contract agreement.

He said, “For this reason, our company demanded, through the court, payment of 50% of the retention money with a prevailing interest rate of 28% for commercial borrowing, and the contractor has the right to demand payment in any currency.”

Kabiru, backed by court certificates and numerous engagement documents, disclosed that after several delays and reminders from BSUPDB, the board invited their company to a meeting on January 7th and 8th, 2020, aimed at reaching an amicable resolution.

“We agreed to waive 50% of the claims and demanded payment within two weeks. However, despite our insistence and pressure on the board to forward their meeting minutes to the Accountant General of the state on September 29, 2020, the government did not act until 12 months later,” he added.

He further revealed, “The Ministry of Justice, in letters dated August 11, 2021, and November 22, 2021, informed the Secretary to the state government that the defendants were reluctant to fulfil any promises. After 12 years of pursuit, legal action was our last resort, resulting in a judgment in our favour.”

Kabiru noted that as indigenous contractors, they deliberately avoided involving the World Bank in the lawsuit to prevent disruption of ongoing water projects in Bauchi and other World Bank-assisted projects.

When approached, counsel to BSUDPB, Barrister UB Babayo, stated that the matter is currently under review by senior officers at the Ministry of Justice, and he refrained from commenting further at this time.