Imo State Governor, Rochas Okorocha, has terminated the contract for the construction of a seven-floor ultra modern state judiciary headquarters awarded to Nnutouch Global Ventures Limited for breaching the terms of the contract.
But the contractor and the Managing Director of the company, Chief Emmanuel Okeke, in a swift reaction yesterday in Owerri, said Governor Okorocha risks legal action that may embarrass him if he goes ahead to terminate the contract which, he said, was duly signed between him and the state government.
In a statement issued at the weekend by the Ministry of Lands, Survey, Housing and Urban Development, and made available to National Mirror, the Commissioner, Hon. Uche Nwosu, said the contract, which was awarded to the company at the cost of N1.3 billion for the total office area of 15, 000 square calculated at the rate of N88, 000 only per square meter, was agreed by both parties to be executed and completed within 12 months.
He disclosed that an initial N200 million was, however, released to the contractor to enable him complete the foundation level of the building.
"Subsequently, the contractor, upon his inability to actualise that level of job, requested for additional payment of N24 million to expedite work on it to bring it to a foundation level within two weeks (14days) from the date of the payment which he also failed to accomplish after government granted his request," Nwosu said.
While explaining the action of the state government, the commissioner said the contract was terminated because the owner and Chairman of the company, one Osita Emmanuel Okereke, after collecting N224, 000, 000 from the state government, abandoned the job without completing the foundation as agreed.
He said; "The deed was signed, sealed and delivered on March 12, 2013 with all the parties including the Chairman of the company, Osita Okereke and the secretary of the company."
According to him, the additional payment came after the contractor failed to deliver to the foundation level. "It is overwhelming that the contractor simply exhibited a dubious character, having failed in every aspect of the contract terms, including abandoning the job after the last payment of N24 million, which he pledged in an agreement, would be used to complete the foundation level of the building."
National Mirror