Commotion at Citec estate as court enforces judgment

Commotion ensued at the sprawling Mount Pleasant Housing Estate of Citec International Estates Ltd, Mbora District along Airport Road, Abuja yesterday as officials of the Enforcement Unit of the Abuja High Court embarked on a dawn raid to effect the recovery of a N401 million judgement debt against the estate development company filed by the Federal Housing Authority (FHA).

Panic stricken residents and staff of the company ran helter-skelter as the enforcement officials accompanied by lawyers and armed Civil Defence personnel arrived at about 6:30 am and began to take possession of vehicles, machinery, office equipment, generators and any company property in sight.

Citec security personnel and other staff had initially put up a stiff resistance as they barricaded the only gate into the estate but the armed security personnel accompanying the court officials dismantled the barricade to make way for the operation.

At the company’s head office located within the estate, another group of crest fallen staff led by three executive directors engaged the enforcement officials in a hot argument but eventually yielded way for the court officials.

Company vehicles, truck loads of office equipment and high capacity generators were subsequently carted away to the premises of the Abuja High Court.

While the operation lasted, scores of motorists, some with school children were trapped in the ensuing traffic build up in the estate which eventually spread to the busy Airport Road in the city.

The Chairman/Managing Director of the company, Mr. Oludare Bello, was said to be out of town and none of the officials of the embattled company were willing to speak to reporters.

The dispute between Citec and the Federal Housing Authority arose from the alleged non implementation by Citec of a tripartite agreement with the FHA and the then Ministry of the Federal Capital Territory under which the company was to build 5,000 housing units at the Mbora District of Abuja.

In fulfilment of its obligation under the agreement, FHA allegedly paid the sum of N300 million to Citec with the job not done.

FHA in 2010 approached the Abuja High Court to compel the company to refund the money and the interest accrued on it but Citec applied for and obtained a stay of proceedings pending arbitration in accordance with the provisions of the Arbitration and Conciliation Act.

In its decision of January 31, 2013, the three member Arbitral Panel headed by former Minister of Justice and AttorneyGeneral of the Federation, Chief Bayo, Ojo, SAN awarded and directed Citec to refund the sum of N401,407,000 to FHA being the total outstanding sum plus accrued interest owed the Authority by the respondent under the 2001 tripartite agreement.

The panel further directed the respondent to pay the money within 90 days of its decision failure of which the agreed interest rate of six percent shall accrue on the award until the sum is liquidated.

FHA, through it counsel, Dr. S. S. Ameh, SAN filed an exparte motion at the Abuja High Court following which Justice A. S. Umar on December 12, 2013 granted it leave to enforce the final arbitral award delivered by the Arbitral Panel.