The Bauchi State High Court has directed Mauritz Walton Nigeria Limited to refund more than N5 billion to the State Government following a prolonged dispute linked to a consultancy agreement between both parties.
Delivering the ruling, the presiding judge, Justice Kunaza N. Hamidu, ordered the company to immediately return the sum of N5,028,249,914.66 to the state government.
The court held that the company had no legal right to retain or demand payment after failing to meet the conditions of the Bauchi consultancy agreement signed with the state authorities.
The dispute arose from a contract under which Mauritz Walton Nigeria Limited was engaged by the Bauchi State Government to help reconcile financial records and recover funds believed to have been wrongly deducted from the state’s accounts.
The assignment specifically involved reviewing transactions connected to foreign loans and identifying excess charges or interest payments that may have been imposed on the government.
According to details presented before the court, the consulting firm was expected to examine the financial records and recover any idle funds or excessive deductions discovered in the course of its review.
The project was structured under the Bauchi consultancy agreement, which clearly outlined the responsibilities of the consulting firm as well as the timeline for completing the task.
However, the court heard that the contract came with a strict deadline.
Justice Hamidu explained in the judgment that the consultancy arrangement had a validity period which ended on January 2, 2015.
Within that period, the company was required to complete its review and recover the funds identified in the agreement.
Evidence before the court indicated that the consultant was given a period of 90 days to carry out the recovery process once the assignment commenced.
Despite this timeframe, the company failed to provide proof that it had successfully recovered the alleged excess deductions or outstanding funds from the government’s accounts before the contract expired.
The judge stressed that the expiration of the Bauchi consultancy agreement meant that the firm could no longer rely on the contract to justify any financial claim against the government.
The court further observed that the agreement was never renewed or extended after it lapsed.
Because of this, Justice Hamidu ruled that Mauritz Walton Nigeria Limited was not entitled to receive any consultancy fee related to the assignment.
He explained that payment for consultancy services is normally dependent on the successful execution of contractual obligations within the agreed timeframe.
The court concluded that since the firm did not recover the funds within the stipulated period outlined in the Bauchi consultancy agreement, it had no legal basis to request payment from the Bauchi State Government.
In addition to ordering the refund of the money, the court also issued a permanent injunction preventing the company from demanding consultancy fees from the state government in relation to the expired contract.
The order also applies to the company’s representatives, agents, or any parties acting on its behalf.
Justice Hamidu further awarded N100 million in general damages against the consulting firm.
The judge said the award was necessary in view of the circumstances surrounding the case and the need to discourage improper financial claims tied to expired agreements.
Following the judgment, the legal team representing the Bauchi State Government expressed satisfaction with the outcome of the case.
Counsel for the state, M. A. Liman, who appeared in court holding the brief of Chief Uche (SAN), commended the court for delivering what he described as a fair and balanced decision.
Liman said the judgment reaffirmed the principle that contractual agreements must be respected and executed within the terms originally agreed upon by both parties.
He noted that the decision also protects public resources by ensuring that government funds are not paid out without proper legal justification.
He further explained that the ruling reinforces accountability in contractual relationships between governments and private consultants.
According to him, companies engaged to provide financial recovery services must meet their contractual targets before claiming fees.
On the other side of the case, Mauritz Walton Nigeria Limited was represented in court by its counsel, Darlington Onyekwere, who handled the legal defence during the proceedings.
Legal observers say the case highlights the growing importance of transparency and due diligence in consultancy agreements involving public institutions.
The judgment also demonstrates how courts can intervene when disputes arise over contracts related to financial recovery and advisory services.
With the court’s decision now delivered, the ruling effectively resolves the dispute over the Bauchi consultancy agreement and confirms that the consulting firm must return the funds as ordered.
Ireport247news
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