Governor Otu's Administration Faces Legal Battle Over Alleged Breach of Contract in Cross River State Library Renovation

The administration of Governor Bassey Edet Otu is under scrutiny as it faces legal charges for allegedly breaching a contract with Henss Asset Company Nigeria Limited regarding the renovation and remodeling of the Cross River State Library Complex in Calabar.

According to documents obtained by our reporter, the Cross River State Government awarded a contract worth N670,424,703.35 to Henss Asset Company Nigeria Limited for the renovation and remodeling of the dilapidated library complex situated behind Millennium Park. The payment structure included a 30% mobilization fee, a 50% interim payment upon project execution, and a 15% completion fee.

Henss Asset Company commenced work on the project in December 2023. However, in February 2024, the government paid only N164 million out of the N201 million mobilization fee, citing a tax deduction of N36 million. The project faced further delays due to late and insufficient payments from the state government, leading to a dispute over the agreed timeline.

In April 2024, the government abruptly terminated the contractor’s agreement, citing the inability to meet the commissioning date of May 29, 2024. Henss Asset Company argued that the delays were caused by the government's failure to release funds on time. Efforts to resolve the issue amicably were unsuccessful, prompting the company to take legal action.

The contractor is seeking judicial intervention to compel the government to pay for the work completed and compensate for damages. On May 6, 2024, the Cross River State High Court ordered both parties to maintain the status quo pending the resolution of the matter. Despite this, the government continued the renovation through the Ministry of Special Duties, allegedly violating the court order.

Sources reveal that the administration's disregard for the court’s directive and delays in filing legal claims have complicated the case. The ongoing renovation, despite the court order, has raised concerns about respect for the judicial system and the rule of law. The situation has yet to be resolved, with the contractor demanding payment and damages for the breach of contract.

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