Coy seeks N500m compensation from AMAC for disengaging it without due process

The firm averred that it was faithful and consistent in remittance of all revenues generated to AMAC in line with the terms of engagement.

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A company, Sabhajem Limited and its Managing Director/Chief Executive Officer, Hajiya Khadijat Aliyu, have dragged the Abuja Municipal Area Council (AMAC) before an FCT high court for disengaging it without due process.

The company was a revenue collector for the area council.

The claimants also joined another company, Saba Integrated Resources Ltd. as the first defendant in the suit, marked FCT/HC/NYA/43/22.

In the writ of summons in the case, dated November 14, 2022, filed by Alex Edim, the claimants averred that Sabhajem Limited was engaged by AMAC as the technical partner to undertake the function of collecting revenue from commercial motorcycle riders in Zone “A”.

The firm averred that it was faithful and consistent in the remittance of all revenues generated to AMAC in line with the terms of engagement.

They added that based on this, its tenure was renewed by a letter dated Dec.  29, 2021, which would expire on Dec. 29, 2024.

According to the claimants, between Dec. 2021 and Oct, 2022, the sum of N3,550,000 was remitted to AMAC out of the N4,500,000 agreed annual total remittance to the area council.

They added that with the change of government at the area council and without any letter of disengagement, they were disengaged by the second defendant, describing the action as “politically motivated”.

The claimants therefore sought, among others –

“A declaration of the court that the engagement contract between Sabhajem Limited and AMAC as technical partner to collect revenue from commercial motorcycle riders within Zone A of AMAC for a period of three years from December 29, 2022 till December 29, 2024 is subsisting.

“A declaration that the purported engagement of the first defendant as technical partner by the second defendant to collect revenue from commercial motorcycle riders within Zone A of AMAC when the engagement of the claimants is still subsisting is ultra vires and void.

“A declaration that the capricious use of power under the excuse of change of government in attempting to disengage the claimants just because it was engaged by the former administration is illegal, ultra vires, unconstitutional, null and void and amounts to administrative recklessness.

The claimants further sought “An order of the court mandating the second defendant to pay the claimants the sum of N500 million being compensation for investment made by the claimants.

They alleged that in the course engagement to secure the operation ranging from security, logistics and materials for the prosecution of the job, will go to waste if disengaged.

Also, it is seeking an order mandating the second defendant to pay to the claimants the sum of N50 million as general damages for the unlawful breach of the contract between the first claimant and second defendant.

An order mandating the second defendant to pay the another sum of N50 million as general damages for the unlawful obstruction of the lawful activities of the claimants, whose contract was still valid and subsisting.

No date has yet been fixed for the hearing of the matter and the matter is not assigned to a court also