Water Corporation Dragged To Court For Breach Of Contract
A limited liability company, Nnestor Tel Nigeria Limited, has dragged Lagos Water Corporation before a Lagos High Court over unpaid consultancy service fee of N87,940,380.06.
Also joined as codefendant is the case is Group Managing Director/Chief Executive Officer of the corporation, Engr. Shayo Holloway.
In a claim filed before the court by Paul Kurekure of the Olumide Shofowora Chambers, the Nnestor Tel Company alleged that sometimes in 2009, the defendants engaged its services to provide consultancy on water projects in various military formations in Lagos.
Consequently after the completion of the project, a board resolution dated 4 April 2010 signed by all the six directors of the claimant company demanded from the corporation the sum of N87,940,380 being the commission due to the company and the said money was ordered to be paid into the company’s account with Guaranty Trust Bank Plc, Allen Avenue, Ikeja, Lagos branch.
However, the board, on 6 April 2010, by another board resolution signed by five directors, also demanded for the payment after the resolution was ascertained by the defendant.
Despite the confirmation of the resolution and the specific account, the money should be paid into a fictitious account at Zenith Bank Plc, Owode, Idiroko, Ogun State.
In view of this development, the claimant is claiming against the defendants, N87,940,380.06 with interest.
In their defence, the defendants, while contending that they are not owing the claimant, averred that it was clear through the two resolutions received that the payment instruction were presented by two sets of shareholders and directors of the company and also in order to comply, a director of the claimant company, Alhaji Abdulrasak A. Sanusi, provided certified true copies of certificate of incorporation and certificate increase in shares capital showing him as the majority shareholder of the company owning 1,300,000 shares out of the company’s 2000,000 shares.
Consequently, the money was paid into Zenith Bank account as instructed by Alhaji Sanusi, but the police has ordered that the money should not be paid to anybody.
In its reply, the claimant company alleged that the documents relied on by the water corporation to pay the monay were fraudulently procured and police is currently investigating a case of fraud against Alhaji Sanusi, based on a petition alleging fraud of about N700 million he collected from various water boards but refused to pay same to the account of the company in the normal course of his duties as the managing director of the company.
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