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Firm to pay N5bn for violating order on FAAN-Maevis deal

         

For violating the concession agreement it had with Maevis Aviation Services Limited, a Federal High Court sitting in Lagos on Monday awarded the firm (Maevis Nigeria Limited) the sum of N5 billion and set aside the termination of the contractual agreement between it and the Federal Airports Authority of Nigeria (FAAN). Despite a court injunction, FAAN last year cancelled the concession agreement it had with Maevis and awarded the same contract to generate revenues at the Lagos and Abuja international airports to Societe International Telecommunication Aeronautiques (SITA). Officials of FAAN had stormed the Murtala Muhammed International Airport in Lagos and forcefully evicted Maevis workers. Maevis then filed a suit against SITA and FAAN. The court said such a contract with SITA was invalid and must be cancelled with immediate effect. It ordered SITA to pay Maevis N5 billion as general damages and relief. Justice Ibrahim Buba, in delivering the judgment yesterday said SITA was aware of a court order preventing FAAN from awarding the contract to another company other than Maevis but still went ahead with the job. The judge said FAAN cannot award the contract to any other company than Maevis. The plaintiff (Maevis) had urged the court to declare that the Defendants (FAAN) are liable to the Plaintiff for willfully and intentionally procuring and/or inducing the Federal Airports Authority (FAAN) to breach its subsisting agreement with the plaintiff by engaging in inconsistent and prejudicial transactions with FAAN to the detriment of the plaintiff. It sought a declaration that the defendants’ actions in willfully and intentionally procuring and/or inducing FAAN to breach its subsisting agreement with the plaintiff is impacting on the plaintiff’s ability to collect revenue due to the Federal Government, pursuant to the facilities provided by the plaintiff under the agreement. On October 1, 2007, the Federal Government, through FAAN, entered into a concession agreement with Maevis.

 

The Guardian  June 18, Page 25.

 

           

 

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