Hope Uzodimma, the Imo State Governor says his administration will implement the full payment of the funds owed Indigenous car manufacturer, Innoson Vehicles Manufacturing Ltd if the company sets a mobile maintenance workshop in the state.
Innoson had sued Uzodimma’s administration for N2.5billion debt which was the cost of the vehicles supplied to the state. The company said that despite all entreaties for the state government to pay, it has refused to do so.
Imo State government had claimed that the company refused to implement part of the agreement it entered with the company which was to set up a workshop in the state for the maintenance of the vehicles but the company denied such claims.
But Uzodimma said in a bid to provide operational vehicles for security agencies at the early days of his administration in order to both combat insecurity and support other logistical needs of our government, his administration thought it necessary to patronise local content.
“This led us to partnering with Innoson Vehicle Manufacturing (IVM) for the supply of the needed vehicles.
“As a condition to the contract, IVM agreed to set up a mobile technical center for servicing the supplied vehicles, pending when it establishes a Technical Service Workshop in Imo State.
“Following the supply of the said vehicles, the State Government remitted over N3b to the company and awaited their compliance with the agreed condition of the contract, which was to set up the said mobile technical center to maintain the vehicles. But they didn’t.
“Unfortunately, as at today, over 70% of the supplied vehicles are broken down and the others are in various stages of disrepair due to the fundamental breach of the contract by IVM to set up a service unit.
“Rather than fulfilling its obligations to the Imo State Government and complying with the conditions of the said agreement, the management of IVM embarked on an unfortunate public outcry to whip up sentiments to mislead unsuspecting Nigerians and rip off the taxpayers of Imo State.
“Despite the breach of contract by IVM, we await its avowed legal proceedings, even as we remain open, as always, to amicably resolving the issues in the best interest of both parties, especially the good people of Imo State” .
