The firm stated that it therefore made payments to Innoson in three tranches, first, N65m on October 11, 2021, and subsequent payments of N80m and N270m totally N415m out of the whole agreed N430m
A firm which specialises in providing vehicle lease services to oil companies has petitioned against Innoson Vehicle Manufacturing, IVM, company to the Federal Competition and Consumer Protection Commission, FCCPC, for failing to supply it vehicles worth N430million.
The aggrieved firm, Petronella (Nig) Limited, in the petition signed on its behalf by one Olaniwun Ajayi dated January 10, 2023, addressed to the FCCPC executive vice-chairman claimed that sometimes in October 2021, it paid a total of N415m out of a total sum of N430m it agreed with IVM management to supply it 20 units of its “IVM’s five-seater, double-carbin, 3.0L diesel pick-up known as the IVM Granite” at per unit cost of N21,500,000.
Petronella stated that part of the agreement it reached with IVM management was that the vehicles should “possess a five-star NCAP (New Car Assessment Programme) rating”.
Petronella stated that Shell Petroleum Development Company, SPDC, of Nigeria approached it to lease the vehicles to it following which it went to Innoson Motors and the management promised that it had had capacity to manufacture the vehicles with the NCAP five-star rating.
The firm stated that it therefore made payments to Innoson in three tranches, first, N65m on October 11, 2021, and subsequent payments of N80m and N270m totally N415m out of the whole agreed N430m.
The company claimed that Innoson Motors had after it paid the first deposit of N65m promised to supply it with the 20 vehicles within two weeks.
The company, however, complained that Innoson Motors only eventually supplied nine vehicles later and that because one the vehicles was found to have an engine fault on the day of delivery it was taken back by the Innoson Motors personnel leaving behind only eight vehicles supplied to it.
Petronella further complained that the eight vehicles were even later found to be lacking the NCAP five-star rating specifications it agreed with IVM.
Petronella complained that because IVM failed in the contract, SPDC cancelled the vehicles lease contract it awarded it.
Petronella complained that it obtained a loan from commercial banks to pay Innoson Motors for the supply of the vehicles, and, that SPDC should have been paying it (Petronella) the sum of N805,443.20 daily if it had leased the vehicles to the oil company.
Petronella stated that it was from SPDC’s daily payment that it had hopped to pay back the loan it obtained to pay Innoson for purchase of the vehicles and also pay the interest on the loan, but, that due to the failure by Innoson to deliver a huge debt is now hanging on its neck.
Petronella stated that when it requested Innoson to provide proof that the eight vehicles it eventually supplied even had NCAP rating specifications it failed to provide any, and that development forced it to return the eight vehicles to Innoson’s branch office in Abuja.
Petronella complained, that Innoson had refused to refund it the sum of N415m it paid to the company.
Petronella cited several breaches of the FCCPC Act by Innoson Motors in respect of the vehicles supply contract and appealed to FCCPC to compel Innoson to refund it the N415m and pay it for the damage it had caused it by breaching the contract.
However, when contacted, the proprietor of Innoson Motors, Chief Innocent Chukwuma accused Petronella of still keeping his vehicles and wanting him to refund him the money he paid.
“The complainant is still with my vehicles. If the company(Petronella) brings my vehicles, I will pay them their money”, Chukwuma stated.