Providus Bank and De-Haryor Global Services Ltd have urged the Federal High Court in Abuja to dismiss Ziklagsis Network Limited’s application seeking to stop the federal government from tempering with a disputed N39,171,985,233.95 fund for the supply of prepaid electricity meters in Nigeria.
In their responses, the defendants opposed Ziklagsis’ lawsuit( FHC/ABJ/CS/576/2024), which seeks a court declaration that the company is entitled to a refund of N7.5 billion or any other funds withdrawn from its “N39.1bn loan account” domiciled with Providus Bank.
The funds relate to a “Judgment Compromise Agreement.”
Background of the Case
The matter stems from a Tripartite Agreement dated December 5th, 2003, involving the federal government (via the now-defunct National Electric Power Authority, NEPA/PHCN), Ziklagsis, and Unistar High-Tech Systems Limited.
The agreement covered the manufacture, supply, installation, and maintenance of three million prepaid electricity meters.
Ziklagsis’ legal team, led by Wole Olanipekun, SAN, claims that on April 22, 2024, the Minister of Power expressed intentions to revoke the contracts awarded to Ziklagsis during an oversight visit by the Senate Committee on Power.
Ziklagsis’ Claims
- Ziklagsis accuses the federal government and the Ministry of Power of deliberate attempts to sabotage its efforts to fulfill the terms of the revalidated Tripartite Agreement.
- The company alleged that the actions, taken in bad faith, aim to deprive it of the benefits of the metering project.
“Immediate judicial intervention is required, without which the defendants will truncate the execution of the project,” Ziklagsis stated in its court filing.
Providus Bank and De-Haryor’s Responses
Providus Bank rejected Ziklagsis’ allegations, describing them as false.
- In a counter-affidavit dated August 13, 2024, the bank explained that it had agreed to lodge the disputed funds after pleas from Ziklagsis and relevant stakeholders.
- It said it also issued a payment guarantee to the Ministry of Power in February 2020 based on Ziklagsis’ directives.
- The bank noted that it is not a party to the original contract but maintains a banking relationship with Ziklagsis.
- It further explained that Ziklagsis, the Nigerian Army, and De-Haryor Global Services Ltd entered into a Power Metering Consortium Agreement in September 2023, which allocated part of the funds for the Nigerian Army Power Metering Project.
Providus Bank stated that, with Ziklagsis’ consent, it issued payment guarantees totaling N12.76 billion and transferred part of the contract sum to De-Haryor Global Services Ltd as agreed.
- The bank urged the court to dismiss Ziklagsis’ application, alleging that it was filed in bad faith and posed a risk to national security due to delays in installing prepaid meters in military barracks.
- Similarly, De-Haryor Global Services Ltd argued that Ziklagsis breached the contract by failing to deliver the meters within the agreed two-year moratorium.
- Its lawyer, Marcus Abu, Esq., asserted that instead of executing the project, Ziklagsis deposited the funds in a fixed deposit account.
“The federal government and the Ministry of Power fulfilled their obligations under the contract by disbursing over N39bn to the plaintiff. However, Ziklagsis’ actions indicate an intention not to utilize the funds for the project,” Abu said.
He added that the court should declare the contract discharged due to Ziklagsis’ alleged breach, rather than restraining the defendants from accessing the funds.
What Next?
Nairametrics gathers that Justice James Omotosho has scheduled February 4, 2025, for further hearing of the case.
