BY OMOS OYINBODE, ASABA
For failing to pay over three years debt owed suppliers of construction materials to Modis Construction Company in Asaba, a company carrying out some construction works for Delta State Government, operations of the company have been grounded by the suppliers who paralyzed activities at all the construction sites on Tuesday.
The suppliers, who barricaded the entrance of the company, demanded immediate payment by the company, saying they had borne with the company over the years while the company waited for payment from the state government and on hearing that the state government had settled the company, Modis was playing game with their money which is running into millions of naira for the different suppliers.
The suppliers who said their duty was to supply construction materials which include granite, sand, rod, cement and other materials for construction works, also said the company had been sold to another company whose identity was not disclosed by the staffer of Modis, Felix Chukwuma, who addressed the protesters at the company premises.
The protesters gave two options for the buyers to take over the company, either the original owners pay their money before handing over to the buyers or the new owners whom they said had inherited all the assets and liabilities of the company must pay them before any construction work would take place at the company’s construction sites.
In one of the sites situated along the ever busy Onitsha-Asaba-Benin Expressway, the protesters stopped the machine and ordered the machine operator to put it off pending when their debts were paid.
Engr. Lucky Oyibode, Managing Director of Vergrow Resources, said the company had stopped paying them for over two years now, even when they are paid, they were paid in bits and as such the money could not be used for any meaningful venture.
“They were owing us over N14million but they pay us in piecemeal and we are indebted to the banks from where we got money for the projects. And now we heard that a new management is taking over the company and they have been paid. Also the state government has paid them for the projects they executed in the state. So, we don’t know why they are still owing us. All we want is for them to pay us. We want whoever has taken over the company to come and pay us, otherwise no work will be done here”, Engr. Oyibode said.
Another supplier, Charles Obuko, Managing Director of Kinky Outfit Ltd, said “we have been waiting for the government to pay them so that they would pay us and we heard that Uduaghan has paid all the construction companies and when we heard it we were happy that they’ve been paid and hoping that Modis would pay us and now, we are hearing stories.
“For now, we have agreed that they can’t work until we are paid. We are here to make sure that we stop them from working since the government has paid them and they don’t want to pay us. We are a group of contractors. We supply materials for them to use for the construction work. We supply cement, rods, granite and all building materials”.
Also, Managing Director of Januels Resources, Mr. Emmanuel Ukwamedua, said “we have heard now that the company has been sold. They refuse to reveal the name of the new buyers that are coming to take over the company. And you know that before selling a company, the assets and liabilities of the company and the balance sheets must have been seen. And we have been reliably informed that they have given them money to pay us and they are not willing to pay. Nobody is working in this company or taken it over until our debts have been fully paid”.
Zebulon Ifediorah, Managing Director of Nice Metals Nigeria Ltd, added “they are owing me over N14m for three years now. And my bank has taken me to the police station for not paying them their money. They told me to take an undertaken that I will pay the money. We’ve been praying that government should pay them so that they pay us. And we have heard that government has paid them but they don’t want to pay us. That’s why we came here this morning.
Speaking on behalf of the company, Felix Chukwuma agreed that the company was actually indebted to the suppliers saying “for us at Modis, it is an unfortunate situation and very embarrassing. We’ve prayed that we resolve this matter earlier than this. We cannot deny the fact that we are owing them. Somebody has come to rescue the situation and he wants to buy the company so that we could pay them all their debts. The process is on.
“This matter has lingered for too long. And in fairness to the government, they’ve done their work. But unfortunately, the financial structure of the company did not make as if the government has done his part. Even though we suffered some form of delay in payment, the delay we suffered created a kind of other inconveniences. It is important to state that the government is not owing us. The situation on ground is a painful one”.
Chukwuma said the contractors have done well to respect the conditions of the company. In all fairness to them, they’ve been wonderful people to us. They have the right to demand for what belongs to them. I want to say that they will be paid. We are speeding up the process of getting the funds for the payment. We have been assured of the payment. I’m believing that the situation on ground now can hasten the release of the money for them.
“All of them are our friends. We are working together. We are not here to fight anybody. We need patience from everybody and let us work together. We will resolve it”.
