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which seeks a court declaration that the company is entitled to a refund of N7.5 billion or any other funds withdrawn from its “N39.1bn loan account” domiciled with Providus Bank.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.”
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.
“Immediate judicial intervention is required, without which the defendants will truncate the execution of the project,” Ziklagsis stated in its court filing.
Providus Bank rejected Ziklagsis’ allegations, describing them as false.
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 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.
Naijaonpoint gathers that Justice James Omotosho has scheduled February 4, 2025, for further hearing of the case.