Innoson Vehicle Manufacturing Company Limited (IVM), is warning of impending danger due to Imo State Governor Hope Uzodinma’s non-payment of a large debt.
The matter concerns 150 automobiles that IVM provided to the state government, which were valued at more than $7 million when they were delivered. However, due to swings in exchange rates, if the payment is made today, the amount would be comparable to $1.5 million, Cornel Osigwe, Head of Corporate Communications and Affairs of Innoson Group, stated on Tuesday.
Osigwe took to Facebook to share the company’s worries.
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Osigwe says the discussion should turn to how Innoson Vehicles has survived in spite of the difficult economic conditions in Nigeria and the substantial debts that the company has.
He said, “Lest we forget, about 150 vehicles supplied to the Imo State Government under the leadership of Hope Uzodinma valued at over $7,000,000 remained unpaid.
“Based on the devaluation of our Naira, if the money is paid today, it will now be worth $1.5M.
“The conversation should be how have Innoson Vehicles been surviving under our harsh economic conditions and heavy debts being owed to the company.”
According to a report published by Anaedoonline.ng in August 2022, the corporation stated in a statement released by Osigwe that the Imo State Government owed it N2.5 billion for the vehicles it had provided to the government.
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Due to the outstanding debt, the corporation had already launched a lawsuit against the state government in an Anambra State High Court.
According to the business, the case was brought about by the state government’s inability to settle or pay off a debt totalling more than N2.5 billion that was incurred when buying cars and their parts.
The Imo State government, however, referred to the car company’s stance as cheap and disgusting extortion.
The government labelled the company’s statements as partial truths meant to cast doubt on its credibility for nefarious purposes.
According to the state government, it has paid Innoson Motors N3.5 billion in automobiles valued at over N5 billion.
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