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Nigeria: Court Sets Oct 28 to Rule On N37 Billion Healthcare Contract Revocation

Mohammed Lawal Shuaibu

15 October 2008

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An Abuja Federal High Court has adjourned to October 28 ruling on whether or not to grant the Federal Government's application to start afresh the case against it for revoking the N37billion contract for the construction of 774 health centres across the country.

The contractor, Messr Mathan Nigerian Limited dragged the Federal Government before the court in March this year for revoking in December last year the contract which was awarded to the company during the Olusegun Obasanjo administration.

But the government which was represented in court by the Attorney General of the Federation (AGF), Chief Michael Kaase Aondoakaa, had on the last adjournment told Justice Mohammed Garba Umar to start the case afresh because he was inheriting it from another judge.

Justice Umar made the adjournment yesterday to enable him deliver his ruling after written addresses for and against the starting of the case afresh (de novo) had been filed by parties in the case.

The government is arguing it revoked the contract because former President Obasanjo awarded it in error.

But the contractors maintain that the government cannot revoke the contract because it was not awarded to them by the former President.

The company told the court that the contract, awarded in 2007 was between it and the Association of Local Government of Nigeria (ALGON).

They are seeking an interpretation of the court to know if the government action was not a breach of contract.

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