Breach Of Contract: Court To Continue Hearing On Suit Against NLNG

A Chief Magistrate Court sitting in Port Harcourt, capital of Rivers State, has fixed December 21, this year to continue hearing on a matter filed by a contracting firm, Macobarb International Limited and its Chief Executive Officer, Ogboru Shedrack, against the Nigerian Liquefied Natural Gas (NLNG), its former Managing Director, Tony Atah and Company Secretary, Akachukwu Nwokedi.

The contracting company and others had registered the suit in PMC/1015/CS/2021, accusing the defendants of alleged criminal breach of contract.

The accused persons are being summoned over NLNG Contract number B130142PPI (Access Control to CCR, Laboratory, Shut Down Village and Gas Plant Area Project) valued at N95.47million as at 2014 but which the complainants alleged have swollen to over N2 billion in accumulated interests and standing time costs.

The charge sheets explained that the complainant was issued in NLNG terms of contract to supply and execute the job and when it was time for payment, the accused denied the clauses upon, which the contract was executed, allegedly pushing the contractor to incur costs NLNG has declined to pay.

The complainants alleged that based on the contractual terms, they sourced huge credit facility from defunct Diamond Bank (now Access Bank) to finance the project so they would be paid on ‘work done’ basis at each stage, milestone or work done in order to liquidate the bank loan as agreed in the borrowing, deposing that they have been deceived and duped by accused.

When the case came up in court on December 9, the accused were absent in court, but a team of lawyers by a Senior Advocate of Nigeria (SAN), Tola Oshobi, alongside Mr.Valentine Igbonekwu and Mr. Tochukwu Nwankwo stood up to file motion for preliminary objection on the call to dock the accused over their alleged refusal to appear in court.

Defendants’ lawyer argued that if preliminary objection is raised, his clients were no longer required by law to put up physical appearance until the objection is decided.

However, Prosecution Counsel, Mr. Morrison Uzoma, asked for a short date to respond to the preliminary objection brought by the defendants’ counsel.

Meanwhile, the trial Chief Magistrate, B. Vic-Jumbo has adjourned the matter till December 21, 2021, for adoption of addresses on the matter.