A construction firm in Uyo, Akwa Ibom State capital, has sued Anchor Insurance Company Ltd for breach of contract, demanding payment of N80,009,237 as damages.
In a Suit No: HU/ 54/2019 filed at Akwa Ibom High Court, Uyo, Donarson Services Ltd, alleged that the insurance company defaulted in paying it the remaining N35,409,237.98 before December 31, 2018 as promised.
The plaintiff is seeking for the following reasonable sums: N35,409,237.98 for specific damage, award of N3,600,000 in avoidable legal cost expended in recovering the liquidation sum in the action, exemplary damage of N25,000,000, damages for breach of contract at N16,000,000 and 10 percent per annually post-judgment sum until judgment is executed.
Recall that Anchor Insurance Company Ltd had in November 2013 awarded the building of a new office complex at Wellington Bassey Way in Uyo at N198,390,843 to Donarson Services Ltd, in which the firm had executed and handed over the job to the company.
After taking over possession and commissioning of the fully serviced apartments with lift en suite building, the insurance company is said to have failed to pay the overdue of N35,409,327.98.
In a telephone interview with Straightnews, Pastor Udo A. Isaiah, Managing Director of Donarson Services Ltd. confirmed “I executed the contract and handed over the job to the company on trust. I have done everything according to the agreement we entered into and mounted pressure on the company to pay us the remaining.”
According to Isaiah, “I did not have any other option of collecting money from the company and I could not go physical. The insurance company awarded the job to us not any ministry. As a law abiding citizen, I decided to seek redress in the court. That property was commissioned by Governor Udom Emmanuel. The entire floors have been rented out and occupiers have moved in. I know the job was N119 million but there were some additions in the course of execution.
Asked on his next line of action in case the court decides the case against his firm, he observed that “The company awarded the job to our firm. I think the company will give us the money. I have contract papers and I had thought the company would settle us before the end of 2018 as promised, but it defaulted.”
In another telephone interview with Straightnews reporter in Uyo, Mr. Ebose Augustine Osegha is the Managing Director/Chief Executive Officer of Anchor Insurance Company Ltd, recalled that “We got a letter from his lawyer that he wanted to go for arbitration. We were shocked that going to court or to press for payment of the contract sum does not make sense. This company belongs to Akwa Ibom government and I am sure he is from Akwa Ibom.
“Every other contractor had been paid except him. I took over the reins of leadership of the company 10 months ago. The issue came to me that we were owing contractors. I directed the company’s secretary to Uyo to meet with the contractors, carry out evaluation and reconcile all payments. I do not know him and he has never discussed with me on the job.”
Osegha who spoke for the defendant noted “So, he referring to the plaintiff brought out the contract papers and said the company defaulted in payment. I directed that other contractors be paid because there were still some unsettled issues with the property which we need to address. Though we still have issue with property, it is not enough reason for us to owe any contractor.”
According to him, “He (plaintiff) wrote to us and I directed that he should be paid at the end of the month. As I speak to you, he is the only person who is not paid. Before we knew it, the contractor reported the company to National Insurance Corporation of Nigeria (NICON) which is a regulator of insurance business in the country. NICON had written to us. After this, his lawyer brought a letter that he has sued us. Can you bring out the matter and pay him. We tried to reach him and he refused.”
He said “Perhaps, he referring to the contractor wants to destroy the image of the company. Does he want his money or want to destroy the image of the company. It is my duty as a professional to protect the image of the company. The company is owned by Akwa Ibom government and the staff strength of the company is 85 percent staffers including the management except few of us from another state.”
Anchor Insurance Company Limited was registered and licensed by the National Insurance Commission (NAICOM) in October 1989 as a general business (non-life) insurance outfit and started business in November of the same year.
However, the matter was fixed for further mention on Wednesday, July 24, 2019.
