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Alan Dick liquidators sue MTN

By Emmanuel Elebeke

LIQUIDATORS to Alan Dick and Company West Africa Limited, (still in liquation), has said that it filed a suit against MTN  Nigeria Communications Limited at the Federal High Court in Lagos Judicial Division.

The plaintiff, by the writ it claimed have been served on MTN and dated March 1, 2010 is claiming over N13 billion from the defendant as unpaid money from telecommunications and construction services as well as other indebtedness.

From the writ of summons and statement of claim, the liquidator is asking for N1.106 billion arising from telecommunications engineering and construction services rendered by ADC to MTN which remained unpaid; another sum of N153 million being the sum total of deductions made by MTN on the allegededly total sum it admitted as debt due and owing ADC; the sum of N9.959 billion being the loss and damages suffered by ADC as a direct and natural consequence of MTN’s alleged failure to honour its obligations; another N2.5 billion demanded as general damages arising from ADC’s liquidation and lastly claims on interest accumulated on the monies from February 1, 2009 until when judgment will be delivered.

Following ADC’s insolvency and the filing of a petition to wind up at the Federal High Court Lagos in Ikoyi, the court by the winding up order appointed Mr Oluseyi  Akinwunmi of Akinwunmi and Busari and Victor Ihekweazu of Chikwem Chambers, both based in Lagos as liquidators to ADC.

In the course of their work in January 2009, the liquidators said they discovered that MTN was indebted to ADC to the tune of N1.263 billion, as at that time.

The liquidators quoted MTN as having  through its own report, titled: Certification of ADC Outstanding Balance at January 31, 2009, which it made available to the liquidators admitted owing ADC the sum of N1.259 billion, being the value of telecommunications and engineering services it rendered before its liquidation.

They said that MTN however in the report deducted the sum of N153 million, purporting  to be the sum of the debt owned it by ADC in the course of rendering the said services.

When contacted, MTN official, said they could not respond to the allegation as it would amount to sub judice since the matter is already in court.

But the liquidators, claim that over N9.9 billion being  received from ADC creditors are the direct consequences of MTN’s failure to liquidate its indebtedness to the construction company.

The liquidators say claims will help them offset outstandings of the company’s 116 former staff, the banks ADC is owing as well as its many contractors.

The ex- staff and creditors that spoke to journalists wished the matter could be resolved and their payments duly made. For them, the situation has crumbled their businesses and subject their dependants to untold hardship.

Many of the ex-staff and creditors are said to have borrowed a lot of money from the banks for the projects they executed for MTN under subcontract agreements with ADC. Some of them are said to have died in frustration, waiting for compensation for the sweat of their labour and to liquidate their personal debts, which never came.


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