Firm demands N30m compensation from Bauchi over breach of contract

A construction company in Bauchi state, EL-BYXZS Nigeria Limited has demanded the payment of N30 million as compensation from the state government for alleged breach of contract.

Managing Director of the company, Bulus Maidawa, who made the demand in an interview with journalists in Bauchi on Thursday, said that the contract was awarded to his company about a decade ago by the state government.

“What happened is about 10 years ago we secured a job of constructing drainages with the ministry of special duties after all due processes. We even paid N300,000 at that time to the ministry of justice,” he explained.

The managing director, who revealed that the contract site was at Ibrahim Bako New Extension in Bauchi Local Government Area.

“After convincingly winning the contract bid, we were asked by the ministry of justice to pay N300, 000 and we did.

“We submitted our bank guarantee, expecting 30 per cent mobilization fee, but it was not given to us up to today that I am talking to you,” Maidawa narrated.

The managing director accused officials of the ministry of frustrating the implementation of the project by his company.

Maidawa alleged that all documents to facilitate the payment were made ready by his firm, but unfortunately the general manager of the agency, who is now permanent secretary took away the documents.

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“The condition was that since we have won the bid for the contract, we would be given 30 per cent of the contract sum as mobilization to commence the project if we pay the government N300,000, but they breached that agreement,” he alleged.

He said that up to now the contract is still binding because the state government has not terminated the contract and has at the same time failed to fulfil its own part of the contract agreement.

Maidawa who said that the contract is still the lawful property of his company, insisted that the company must be compensated by the Bauchi state government.

The company which said it was no longer interested in the contract because it is the same people that are managing the ministry insisted that all they now need is to be paid N30 million as compensation.