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UNITED NATIONS
SPONSORED CONTRACTS FOR THE SUPPLY OF
MILITARY ITEMS TO NIGERIAN SOLDIERS IN
DARFUR AND SUDAN FRAUSTRATED;CONTRACTORS
DRAG CHIEF OF ARMY STAFF AND FEDERAL
GOVERNMENT TO ARBITRATION PANEL OVER
THEIR FAILURE TO EFFECT PAYMENT FOR
ITEMS SUPPLIED
In January, 2008, the Chief of Army
Staff, Ministry of Defence, acting for
and on behalf of the Federal Government
of Nigeria awarded contracts to Esquire
Ventures Ltd; Profitel Ltd, Century
Communications Ltd and Jonny-Way
Investments Ltd (note: names of
companies not to be published for
security purposes) for the supply of
various specialist Military items to be
used by the Nigeria’s United
Nations-backed Troops deployed to Darfur
and Sudan for the total sum of One
Billion, Two Hundred Million Naira.
Between January and August 2008, these
companies supplied these items to the
Nigerian Army worth N660,000,000 (Six
Hundred and Sixty Million Naira)
notwithstanding the fact that they were
not paid mobilization fees as provided
by the said contract. Out of these
amount only N175,000,000 was paid by the
late Chief of Army Staff, Lt. Gen. Yusuf
shortly before he was removed from
office, leaving an outstanding balance
of N476,000,000 unpaid.. Thus the cost
of items fully supplied but unpaid for
is N476,448,000 while the cost of items
produced and ready for shipment is
N530,700,000
At the time Lt. Gen Dambazau took over
as the new Chief of Army Staff, the
Military had just received Millions of
Dollars from the United Nations in
respect of these military items to be
used by the Nigerian troops in Sudan.
Rather than pay the contractors who
supplied this items, the money was
deposited in special accounts and used
for other purposes at the expense of the
contractors and the welfare of the
Nigerian troops in Sudan and Dafur.
Following mounting pressures from the
contractors, Gen. Dambazau set up two
committees, one of which was headed by
Major-General Azurunwa, to verify all
contracts awarded by his predecessor.
The Major-General Azurunwa committee
after visiting all the depots where the
supplies were made, and checking out all
documentations from both the contractors
and the supply depots, came out with a
report which certified that the
contracts were duly executed and should
therefore be paid by the army
authorities.
After the report of the Azurunwa
committee over two months ago, the Chief
of army staff mandated Major-General U T
Usman and Major-General Charles to
negotiate with the contractors to give
the army some discounts on the
outstanding debts and also to agree for
the debts to be paid in two
installments. Since then, the
contractors claim, nothing else has been
heard from the army authorities.
These companies have made several
demands on the Chief of Army Staff to
pay for the Military items already
supplied and honour the terms of the
contracts but to no avail.
Meanwhile, the money used for the
execution of the contracts being
borrowed funds from the banks continues
to yield huge default interest rate of
30% against the companies.
The banks have also threatened to
foreclose on the companies’
collaterals for failure to pay back the
loans.
The companies on their part have stopped
further supply of these items to the
soldiers in Darfur and Sudan as a result
of this ugly incident.
The companies having exhausted every
amicable means of urging the Chief of
Army Staff to pay the outstanding sum
and honour the agreement have briefed us
to give a formal notice of the reference
of the matter to the Arbitration court
and the appointment of J.B DAUDU (SAN)
as their arbitrator. A copy of the
notice of arbitration is attached for
ease of reference.
The contractors claims against the
Federal Government before the
arbitration panel are as follows:
(a) The sum of N476,448,000 being the
contractual price of the good supplied
to the Nigerian Army with 21% interest
per annum from August 2008 till judgment
is entered and 60% interest on the
judgment sum until it is liquidated.
(b) The sum of N100,000,000.00 as
general damages for breach of contract.
(c) The sum of N530,700,000 being the
purchase price of the remaining items
for which our clients have already
committed part payment to the
manufacturers, production of which is
ready for shipment. Or ALTERNATIVELY,
the sum of Ł358,000 paid as deposit by
our clients to the manufacturers in
respect of the remaining items with 21%
interest per annum from February, 2008
till judgment is entered and 60%
interest until the judgment sum is
liquidated.
The Chief of Army Staff and the Federal
Government are expected to forward the
name of their Arbitrator within 15 days
of their receipt of the notice.
For: Festus Keyamo Chambers
ALEXANDER OKETA, ESQ.
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