N180m Contract Debt Judgment Sparks Management Row in ECOWAS Commission

* Court determines appeal Oct 12

Management staff of the Economic Community of West African
States (ECOWAS) Commission are currently exchanging blame over
factors that led to the commission incurring a contract debt to the
tune of N180m.

The debt was incurred following the failure of the commission to
pay a contractor -Vision Kam-Jay Investment Ltd for services
rendered to the commission.

The commission had on November 11, 2014 awarded two contracts to
the firm for the supply, installation and maintenance of two 15 KVA
inverters for power and associated equipment at its Niger House and
River Plaza Server Room both in Abuja.

The contract was awarded in two tranches of N35.7million and
N20.6million to make a total N56.4million contract sum and at a
completion period of four weeks,

The contractor, Vision Kam-Jay Investment Ltd was said to have
executed the jobs within the period and to the specification as
contained in the contract paper signed by the Commissioner General,
Administration and conference Mr. Stephen Nartey.

Upon completion, he was issued a job completion certificate
dated December 18, 2014 jointly signed by the Director, Community
Computer Centre Mr. Osei Tutu and a Programme Officer, ICT Folake
Olagunju Oyinda, to clear him for payment in line with the
contractual agreement endorsed by the commission and the
contractor.

However, trouble started when the commission, in breach of the
agreement, made the first tranche payment of N35.7million and
ignored the second tranche of N20.6million despite several
demands.

The trouble got to the peak when the contractor through its
counsel Mr. Ocholi James, (SAN) dragged the commission before the
ECOWAS court on December 8, 2015 and prayed for order of the court
compelling the commission to pay the contractor the outstanding
N20.6million and 10 per cent interest per day on the amount from
April 16, 2015 till the debt is liquidated.
In the court action, the plaintiff also demanded N500million as
general damages.

The contractor claimed to have lost its partnership with its
American counterpart and operational certificate due to refusal of
the commission to honor the debt.

However, in the judgment of October 6, 2016, the ECOWAS court
found the commission liable for breach of contract and ordered it
to pay the plaintiff the N20.6million principal contract sum and
one per cent interest per day from April 16, 2015 till the judgment
debt is fully liquidated.

As at April 16, 2015, the commission had delayed payment for 120
days in breach of the contract agreement provisions.
The three-man panel of Justices on Friday, Chijioke Nwoke, Micah
Wilkins Wright and Yaya Boro, counselled the commission to always
exhibit responsibility and commitment in executing contracts in
future.

The Justices in their unanimous judgment noted that the
unfortunate laxity on the part of officers of the commission
occasioned the losses to the defendants.

But rather than complying with the court verdict, the commission
filed a notice of appeal to the same court praying for a review of
its judgment of October 6, 2016.

Although judgment in the appeal was fixed for October 12, 2017,
the commission ahead of the judgment day, opted for out of court
settlement with the plaintiff and convened a high powered meeting
on May 8, 2017 attended by its management and lawyers to the
contractor.

In the resolution of the meeting signed by the Commissioner
in-charge of General Administration and Finance Mr. Stephen Nartey
and the Director, Legal Affairs, Mr. Daniel Lago, for the
commission and Mr. John Uttuh Junior for the contractor, both
parties agreed that as at May 15, 2017, the sum of N178.2million
had accrued from the judgment debt to be paid to the
contractor.

However, after persuasion and negotiation, the contractor made
concession and agreed to accept N20.6million as the principal sum
and N150million as the accrued interest totaling N170.6million and
which the commission agreed to pay.
The commission agreed to first pay up the N20.6million principal
sum and the N150million balance in two installments of N75million
by July and September 2017.

In another breach of agreement however, the commission settled
the N20.6m principal sum and refused to honour the N150m balance in
flagrant disobedience to the orders of the ECOWAS court made on
October 6, 2016.

In a buck-passing game, the commission in an internal memo to
the President of the Commission took swipe at the Financial
Controller of the commission for being responsible for the plight
of the commission with refusal to pay the contract debt on time to
the contractor.

* Court determines appeal Oct 12

Management staff of the Economic Community of West African
States (ECOWAS) Commission are currently exchanging blame over
factors that led to the commission incurring a contract debt to the
tune of N180m.

The debt was incurred following the failure of the commission to
pay a contractor -Vision Kam-Jay Investment Ltd for services
rendered to the commission.

The commission had on November 11, 2014 awarded two contracts to
the firm for the supply, installation and maintenance of two 15 KVA
inverters for power and associated equipment at its Niger House and
River Plaza Server Room both in Abuja.

The contract was awarded in two tranches of N35.7million and
N20.6million to make a total N56.4million contract sum and at a
completion period of four weeks,

The contractor, Vision Kam-Jay Investment Ltd was said to have
executed the jobs within the period and to the specification as
contained in the contract paper signed by the Commissioner General,
Administration and conference Mr. Stephen Nartey.

Upon completion, he was issued a job completion certificate
dated December 18, 2014 jointly signed by the Director, Community
Computer Centre Mr. Osei Tutu and a Programme Officer, ICT Folake
Olagunju Oyinda, to clear him for payment in line with the
contractual agreement endorsed by the commission and the
contractor.

However, trouble started when the commission, in breach of the
agreement, made the first tranche payment of N35.7million and
ignored the second tranche of N20.6million despite several
demands.

The trouble got to the peak when the contractor through its
counsel Mr. Ocholi James, (SAN) dragged the commission before the
ECOWAS court on December 8, 2015 and prayed for order of the court
compelling the commission to pay the contractor the outstanding
N20.6million and 10 per cent interest per day on the amount from
April 16, 2015 till the debt is liquidated.
In the court action, the plaintiff also demanded N500million as
general damages.

The contractor claimed to have lost its partnership with its
American counterpart and operational certificate due to refusal of
the commission to honor the debt.

However, in the judgment of October 6, 2016, the ECOWAS court
found the commission liable for breach of contract and ordered it
to pay the plaintiff the N20.6million principal contract sum and
one per cent interest per day from April 16, 2015 till the judgment
debt is fully liquidated.

As at April 16, 2015, the commission had delayed payment for 120
days in breach of the contract agreement provisions.
The three-man panel of Justices on Friday, Chijioke Nwoke, Micah
Wilkins Wright and Yaya Boro, counselled the commission to always
exhibit responsibility and commitment in executing contracts in
future.

The Justices in their unanimous judgment noted that the
unfortunate laxity on the part of officers of the commission
occasioned the losses to the defendants.

But rather than complying with the court verdict, the commission
filed a notice of appeal to the same court praying for a review of
its judgment of October 6, 2016.

Although judgment in the appeal was fixed for October 12, 2017,
the commission ahead of the judgment day, opted for out of court
settlement with the plaintiff and convened a high powered meeting
on May 8, 2017 attended by its management and lawyers to the
contractor.

In the resolution of the meeting signed by the Commissioner
in-charge of General Administration and Finance Mr. Stephen Nartey
and the Director, Legal Affairs, Mr. Daniel Lago, for the
commission and Mr. John Uttuh Junior for the contractor, both
parties agreed that as at May 15, 2017, the sum of N178.2million
had accrued from the judgment debt to be paid to the
contractor.

However, after persuasion and negotiation, the contractor made
concession and agreed to accept N20.6million as the principal sum
and N150million as the accrued interest totaling N170.6million and
which the commission agreed to pay.
The commission agreed to first pay up the N20.6million principal
sum and the N150million balance in two installments of N75million
by July and September 2017.

In another breach of agreement however, the commission settled
the N20.6m principal sum and refused to honour the N150m balance in
flagrant disobedience to the orders of the ECOWAS court made on
October 6, 2016.

In a buck-passing game, the commission in an internal memo to
the President of the Commission took swipe at the Financial
Controller of the commission for being responsible for the plight
of the commission with refusal to pay the contract debt on time to
the contractor.