Innoson Motors insists Imo government owes it N2.5 billion

Innoson Vehicle Manufacturing Company has insisted that the Imo state government still has to pay the N2.5 billion debt for the purchase of its vehicles and their parts. The company last week said it had sued the state government in a State High Court in Anambra state over its inability to repay debt. He said the value of the debt, with a dollar value of $3.8 million, has now risen to about $6.3 million, noting that the value of money has depreciated by more than 40 percent. But the Information Commissioner in Imo State, Declan Emelumba, would later criticize the claim, saying the company was covering up some facts and trying to blackmail the state government. He accused the company of intentionally refusing to admit that the government had made some payments and that the amount claimed by the company was only a balance of the total cost of the vehicles purchased by the government. “The truth is that the total value of the contract we had with them reached more than N5 billion, of which we have paid N3.5 billion. So, they are talking about balance,” said Emelumba. Emelumba, in a statement on Sunday, said that around 70 percent of the vehicles had broken down, alleging that the company reneged on an agreement to set up a maintenance workshop for the vehicles. But in his reaction, Innoson Motors spokesman Cornel Osigwe, in a statement on Monday, accused the state government of trying to “water down the facts and substance” of the allegation. Mr. Osigwe denied the state government’s claim that the contract was worth more than N5 billion. He said the current debt is due after the company supplied another set of vehicles in 2021, a year after the first transaction. He said the latest supply was made with “the understanding that the state government will pay for the vehicles after deliveries.” He said that the government did not pay the debt despite repeated appeals through some clerics and government officials. “Approaching the courts to recover the debt was the last option for us since the governor has rejected all the pleas that have been made to him to pay us,” he said. The spokesman said that there was no agreement with the state government that they would establish a service center in the state. He said the company has several vehicle service partners in the state where its vehicles are maintained and serviced. ALSO READ: Why we are launching tricycle production in Nigeria – Innoson He also said that the company also has a unique mobile workshop that provides vehicle maintenance and servicing to its customers. “As far as we know, Innoson Vehicles has always maintained and repaired the vehicles supplied to the Imo State Government until the time the company decided to withdraw its maintenance and service as a result of non-payment for used service parts which have increased . to over N7 million,” he said. “This particular debt, among others, is what Innoson Vehicles has detailed to recover from the court of law.” He also denied claims by the state government that he had been paying off the debt and said the government has not paid any money since the vehicles were delivered to them in April 2021. “There are several receipts for letters and messages sent to the state government and the governor appealing to their awareness that failure to pay this debt or its servicing will lead to the closure of Innoson Vehicles operations, not once did we get any response of hope. of the governor,” he said. Read More Related News Here Let here it in the comment below if you do have an opinion on this; Innoson Motors insists Imo government owes it N2.5 billion