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Alleged Breach Of N40m Contract: Farmer Seeks Compensation From Facco - Business - Nairaland

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Alleged Breach Of N40m Contract: Farmer Seeks Compensation From Facco by themomentng: 11:48am On Nov 19, 2018
Lawal Iyanda Farms Limited has demanded a refund of the contract sum of N40, 370,000.00 and N675, 000 per day said to be the daily loss production from Facco West Africa Limited.

Facco West Africa Limited had promised that all the components of 252 units of New Battery Cages (3-tiers) would be supplied to the farm within 10 days, but has failed to supply and install the items five weeks after they were fully paid for.

Its sister company, Agrited Nigeria Limited, had earlier reneged necessitating the renegotiation of the contract with the company.

Sola Adebayo, who made the demand on behalf of Lawal Iyanda Farms Limited, said he was compelled by the failure of the company to meet the deadline for the supply of the items.

He said: “Kindly recall that I indicated my interest in purchasing 252 units of New Battery Cages (3-tiers) from your company following the failure of a sister company, Agrited Nigeria Limited, to meet the deadline for the supply of the item.

“Following my telephone discussion with you that you can readily supply the cages because of the age of my birds, which were due for caging and the assurance emanating from your PROFORMA INVOICE that you can supply the 252 Units within 10 days, I requested for your company’s Account details which you duly forwarded to my Mobile Phone on September 26.

“I immediately repaired and adjusted the Four Poultry Pens, where the cages are to be installed in line with size and dimension of your product, having used that of Agrited Nigeria Ltd, initially to design the pens. This exercise gulped about N2.5 million.

“Simultaneously, payment of N40, 370,000 for the aforesaid 252 units of cages, into your company’s account, as given by you, POULTRY EQUIPMENT FACCO WEST AFRICA LTD- ZENITH BANK, 1010315274, in tranches, was completed on October 5.

“Your company made supply of few components of the cages into my farm, LAWAL IYANDA FARMS, Orerokpe, the headquarters of Okpe Local Government Area of Delta State, twice, on October 12, and 15, and subsequently disappeared. The supplies fell short of what was required to put the 252 units of cages together and that marks the beginning of nightmare.”

Adebayo said the entire 26,000 birds raised to be caged are dying in scores. “I have lost over 5,000 birds already and more are still dying, aside from loss of egg production. At 26 weeks, I should be doing about 75 per cent of their daily production, which is about 700 Crates.

“At prevailing price of N850 per crate, our daily loss in production is about N637, 000. I should earn this amount from the birds daily, for a period of 18 months. They are not producing eggs because they can’t in such environment. And this is understandable,” he added.

Emmanuel O. Uti and company, lawyers to Lawal Iyanda Farms Ltd, also petitioned the MD of Facco West Africa Limited on November 15, on the issue.

The petition which was signed by its principal partner, Emmanuel O. Uti, gave seven days ultimatum from the date of receipt of the letter for Facco West Africa Ltd to comply with its client’s demand.

The petition read in part: “Premised on the foregoing, we have our client’s mandate to inform your company to come retrieve the few components of cages already supplied (as they are yet to be installed).

“Take notice that, your company has on or within 7 (seven) days of its receipt of this letter, to comply with our client’s modest demand, lest we shall not hesitate to institute an action in court, against your company, claim for damages”

However, when contacted the company through Mrs. Abimbola Adelayo Ogunyale, said the cage parts to complete the installations got to Warri on Thursday but could not be delivered to the farm because the driver was not allowed to.

“He will deliver to the farm first thing in the morning (Friday). So, all battery cages have been delivered to the Farm, the company didn’t defraud Mr. Sola Adebayo as he claims,” she said.

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