Nigeria: Innoson Insists It’s Owed N2.5bn By Imo State

Innoson Vehicles has insisted that it is being owed a significant amount of money by the Imo State Government.

Cornel Osigwe, Innoson Vehicles’ Head of Corporate Communications and Affairs in a statement on Monday said that, “No agreement in the vehicle contract with the Imo State government was broken.”

The company states that the state government had yet to make any payment since the vehicles were delivered in April 2021.

The statement reads thus:

“Our attention has been drawn to a statement purportedly released by the Commissioner for information and Strategy, Hon Declan Emelumba on behalf of the Imo State Government. The said statement was unscrupulously written to water down the facts and substance stated in our earlier statement. We do not wish to join words with the Imo State Government as we now have it on good authority that it has engaged its e-dogs to discredit our brand in the media space. The matter is now before the courts, and we have always believed in the integrity of the judiciary to do the right thing when facts are stated.”

The statement further says, “However, to ensure that the public is not deceived by the so-called response, we have decided to puncture the pack of lies and further strengthen the facts.”

The statement outlines two independent allegations of the Imo State Government buying vehicles with the promise of payment but refusing to make any effort to pay.

“Imo State Government under His Excellency, Senator Hope Uzodinma, paid for its first set of Innoson vehicles it ordered from the company in March 2020. The details of this transaction were not done in secret but were carried in the media. In April 2021, Imo State Govt. requested the supply of another set of vehicles with an understanding the State Government will pay for the vehicles after deliveries to them, just as was the case with the first transaction and which request was granted and honored.

“Innoson Vehicles has made all efforts since April 2021 through every means possible to make the Governor pay for these vehicles, all to no avail.”

The statement also addresses the contractual agreement between Innoson and the Imo State Government.

“It is not correct that Innoson Vehicles agreed with the Imo State Government that Innoson Vehicles will set up a Service Centre in Imo State. Innoson Vehicles is not a charitable organization but a business concern that needs money to stay in business.

“Innoson Vehicles has always maintained and serviced the vehicles supplied to the Imo State Government up to the stage the company decided to disengage its maintenance and servicing as a result of non-payment of servicing parts used which have risen to above 7M naira.”

The statement addresses servicing of debt and claims that it is false in its entirety. Innoson further added that they had made efforts to reach out to the Imo State Government with a payment plan but were not received.

“Since the vehicles were delivered in April 2021, the State Government hasn’t paid one naira. The company has utilized every known means to make the state pay or negotiate a payment plan that will clear the debt.”

Innoson Vehicles says the government was not disposed to settling the debt or reaching an agreement on terms of settling the mounting debt. And adds that the defendants in the suit including the Attorney General of Imo State have been served by the bailiff of the honorable court.

Innoson states that the case being taken to court is a last-ditch effort in response to the lack of action from the Imo State Government and further added that they do not delight in it.

“There are several receipts of letters and messages sent to the State Government and the Governor appealing to his conscience that the nonpayment of this debt or its servicing will lead to the shutdown of operations of Innoson Vehicles, not for once did we get any response of hope from the Governor.” The statement reads.

The statement ends with Innoson urging the Imo State Government to do the needful and pay its debt with the accruing interest so that the case will be withdrawn from court.

Innoson Vehicle Manufacturing Co. Ltd. (IVM) commonly called the” Pride of African Road” is a Nigerian vehicle manufacturer, with its headquarters in Nnewi, Anambra, Nigeria. Founded by Chief Innocent Chukwuma Nwala.

Michael Etokakpan

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