Innoson Motors Debt Claims Are Mischievous Half Truths, Cheap Blackmail, Says Imo Govt
- The Imo state government has stated that the recent claims of debt by Innoson Motors is cheap blackmail
- The government also described the claims by the popular African car manufacturer as mischievous half truths
- According to the spokesman of the Imo government, Innoson Motors failed to keep to an agreement with the state
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Owerri - Imo state government has described as distasteful and cheap blackmail the claim by Innoson Motors that it is owing the company N2.5billion being cost of the vehicles it supplied to it some months ago.
The government said the company's claim are half truths, intended to impugn on the integrity of the Hope Uzodimma administraion for ulterior motives.
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Reacting to a threat by the company that it is filling a lawsuit on the matter, the commissioner for information and strategy, Hon Declan Emelumba deplored the manner the company is going about the recovery of the so called debt.
The commissioner said the truth is that the government bought vehicles worth over N5 billion from Innoson motors and has so far paid them N3.5 billion.
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According to him, contrary to the claim of Innoson Motors, the said N2.5 billion is actually the balance due from the original value of the purchase.
Emelumba insisted that the total value of the vehicles supplied was in excess of N5 billion and that the government has been servicing the debt since then.
He said the management of Innoson Motors was actually the one that breached the contractual agreement with the state government regarding the sale and maintenance of the vehicles.
According to him, there is a clause in the purchase agreement stipulating the siting of a maintenance workshop in Owerri and a mobile workshop as well.
He noted that inspite of the fact that the company breached this agreement, the state government has been servicing the debt and still maintaining the vehicles, disclosing that more than 70% of the vehicles have already broken down.
He said both the threat by the company and resort to media trial of the government were in bad faith.
He added:
“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 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.”
He also expressed regret that Innoson Motors had not actually exhausted all means of negotiation before threatening the government with a law suit.
Innoson Motors slam lawsuit over debt by Imo state govt
Legit.ng had earlier reported that Innoson Vehicle Manufacturing Company filed a lawsuit against the Imo government over its failure to pay a N2.54 billion debt owed to the firm.
Cornel Osigwe, head, corporate communications and affairs, Innoson Vehicles, made this known in a statement.
The statement claimed the state government had purchased various IVM vehicles and refused to make payment despite repeated demands and appeals.
Source: Legit.ng
