Ogheye Floating Market: Bank drags Maybedik to court over N 666million debt

A commercial bank, Keystone has dragged a construction firm, Maybedik Nigeria Limited to the Federal High Court in the Lagos Judicial Division following failure of the company to pay six hundred and sixty six million, six thousand, eight hundred and thirty nine naira, twenty eight kobo (N 666,006,839.28) being money accruing from loan granted by Keystone Bank since 2011 for the construction of the N 2.6 billion platform of Ogheye Floating Market in Warri North local government.

The bank in suit no.FHC/L/CS/416/14 is praying the court to compel the construction firm, Maybedik Nigeria Limited, its Managing Director and CEO, Mr. Philip Omagbemi Awani, Mr. Otome Alloh and Mr. David .J. Okpegboro to pay the N666 million, covering 400 million capital and 266 million as accruing interest.

Managing Director and Chief Executive Officer of Maybedik, Mr. Philip Awani in his reaction noted that the delay in servicing the loan is due to non payment for jobs already done by the Delta State government.

According to Mr. Awani, the 100 metres width of the floating market has been cast , while 60% of the 120 metres length has also been cast, stressing that “75% of the entire project has been executed, but since December 2012 the certificate of payment of 105 million naira has been on the state governor’s table for approval and release”.

Mr. Awani further stated, “the project sum was reviewed to N2.6 billion from its initial N1.8 billion as a result of delay in payment by the Delta State government and it equally affected my company’s relationship with a sister bank, Eagle Flight Micro Finance Bank in Warri at the initial stage of the project before we sought solace in Keystone Bank and the continuous delay by the Delta State government is making it difficult for my company to live up to its financial obligation to Keystone”.

He appealed to the state government to pay the N105 million for which certificate has been raised since December 2012, just as he quipped that the project consultant, Utimits & Mira Associates has refused to raise fresh certificate for jobs already executed by his company due to the fact that the one already raised has not be paid hence the decision to halt work at the project site.

Mr. Awani lamented the losses being faced by his company on the construction site as a result of materials already procured that are lying fallow on the floating market.

While stating the commercial and industrial importance of Ogheye Floating Market to the Itsekiris in Warri North local government in particular and the Niger Delta Coastal communities in general, Mr. Awani stressed the need for all stakeholders to ensure that the legacy project is devoid of sentiment and political interest, just as he vowed that if fund is made available to his company, the remaining work on the project will take less than four months to complete.

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