70% of cars bought from Innoson broke down, Imo govt counters firm’s allegation

Imo State Government claimed it was ripped-off by carmaker, Innoson Vehicle Manufacturing Company, in a purchase agreement worth N5 billion.

The government said the company breached their agreement.

The commissioner for information and strategy in Imo state, Declan Emelumba, made the disclosure in a statement on Sunday, suggesting that aside from contract breach, 70 percent of the vehicles purchased had broken down.

Emelumba made the statement following an allegation by Innoson that the Imo State Government was owing the automaker N2.5 billion after refusing to pay for the cars and parts bought from the firm.

He labelled the accusation as “distasteful and cheap blackmail”, disclosing that Innoson made a misleading statement that made it seem as if the transaction was only N2.5 billion, whereas, its valued was around N5 billion.

The commissioner stated that the Imo government had paid N3.5 billion, with the N2.5 billion being the balance of the transaction. He said the amount was paid despite Innoson not establishing a workshop for maintenance in Owerri, as agreed in the contract.

According to Emelumba, the debt was being serviced even though 70 percent of the vehicles had broken down, stating that Innoson was trying to twist the facts of the transaction.

Read also:Okorocha accuses Imo govt of auctioning his vehicles

While Innoson said the company had filed a lawsuit against the Imo State Government, the latter said it hadn’t received any court papers.

In his words, Emelumba said, “It appears the company is out to rubbish the integrity of the government, otherwise it would not have twisted the facts of the case and published the same concerning this honest business transaction, even when it failed to show the public the terms of the contract and the clauses the government breached therein.

“The whole thing smacks of mischief and bad faith.” Emelumba added, stating further, “The mischievous resort to media trial has confirmed that the company is more interested in compromising the integrity of the government rather than being paid its outstanding balance from the contract sum.”

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