Firm seeks N500m compensation from Abuja council for unlawful disengagement as revenue collector

A firm, Sabhajem Limited and its Managing Director/Chief Executive Officer, Hajiya Khadijat Aliyu, have dragged the Abuja Municipal Area Council (AMAC) before the High Court of the Federal Capital Territory (FCT) for being disengaged as revenue collector for the area council.

The claimants also joined another company, Saba Integrated Resources Ltd as the first defendant in the suit, marked FCT/HC/NYA/43/22.

In the writ of summons in the case dated November 14, 2022, filed by Alex E. Edim Esq, the claimants averred that Sabhajem Limited was engaged by AMAC as a technical partner to undertake the function of collecting revenue from commercial motorcycle riders in Zone “A” of AMAC on behalf of the area council.

The firm averred that it was faithful and consistent in the remittance of all revenues generated to AMAC in line with the terms of engagement, adding that based on this, its tenure was renewed by a letter dated December 29, 2021, which would expire on December 29, 2024.

According to the claimants, between December 2021 and October 2022, the sum of N3,550,000 has been remitted to AMAC out of the N4,500,000 agreed annual total remittance to the area council.

They added that with the change of government at the area council and without any letter of disengagement, their services was disengaged by the second defendant, describing the action as “politically motivated”.

The claimants therefore sought, among others, “a declaration of the court that the engagement contract between Sabhajem Limited and AMAC as technical partner to collect revenue from commercial motorcycle riders with the Zone A of AMAC for a period of three years from December 29, 2022 till December 29, 2024 is subsisting.

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“A declaration that the purported engagement of the first defendant as technical partner by the second defendant to collect revenue from commercial motorcycle riders within Zone A of AMAC when the engagement of the claimants is still subsisting is ultra vires and void.

“A declaration that the capricious use of power under the excuse of change of government in attempting to disengage the claimants just because it was engaged by the former administration is illegal, ultra vires, unconstitutional, null and void and amounts to administrative recklessness.”

The claimants further sought “An order of the court mandating the second defendant to pay the claimants the sum of N500million being compensation for investment made by the claimants in the course of its engagement to secure the operation ranging from security, logistics and materials for the prosecution of the job which goes to waste if disengaged.

“An order mandating the second defendant to pay to the claimants the sum of N50million as general damages for the unlawful breach of the contract between the first claimant and second defendant.

“An order mandating the second defendant to pay the sum of another N50million as general damages for the unlawful obstruction of the lawful activities of the claimants whose contract was still valid and subsisting.”

No date has yet been fixed for hearing of the matter.