Hearing resumes on league sponsorship tussle today
Fourteen
weeks into the season, the Nigeria Premier League (NPL), remains
enmeshed in crisis, and today at a Federal High Court in Lagos, hearing
will resume on the suit filed by Total Promotions Limited, the firm
which represented MTN in the bidding for the NPL title rights.
Total Promotions is
seeking to challenge the cancellation of the contract it entered with
the NPL after emerging tops in an initial bid exercise conducted on
December 15 -16, 2010 in Abuja.
The congress of the
NPL that met in Abuja last Wednesday, January 26 had ruled that the
process of the bidding exercise was faulty hence they called for a
fresh exercise that will come up within two weeks.
However, for Niyi
Alonge, Total Promotions’ boss, the NPL congress was wrong in its
decision claiming that they have no right to unilaterally terminate a
duly signed commercial contract.
“Total Promotions Limited affirms it has a duly executed subsisting contract between the two parties for the next four years.
The contract fully
states the process by which it can be vitiated by both parties. No part
of this subsisting legal agreement gives one party the right to act
unilaterally.
“We are duty bound to await and abide by the courts decision on the subsisting suit,” said Alonge in a press statement.
More crises
While the court
cases are still hanging, the Economic and Financial Crimes Commission
(EFCC), has also summoned six NPL officials to answer questions on an
alleged sponsorship scam totalling over 3 billion naira (about $20
million).
The officials for
questioning include: former NPL boss, Oyuiki Obaseki and the current
chairman, Davidson Owumi. Others invited by the anti graft body are:
Al-Hassan Yakmut, the NPL’s former executive secretary; Shehu Gusau,
the NPL’s vice-chairman, as well as Joe Amene and Total Promotions’
Alonge.
“They have been
told to report to the EFCC office in Abuja on February 10. They are to
answer to allegations of mismanagement of revenue accruing from the
sale of television rights on behalf of the NPL,” said EFCC spokesman,
Femi Babafemi.
It has been alleged
that the television rights for the NPL were sold for a total of three
billion naira (over $20 million) between 2006 and 2010 to a South
African company, but only about 436 million naira or about $3 million
was received by the league in all these years.
Former league
sponsors, Globacom had earlier fingered the high level of corruption in
the NPL as the reason for defaulting in the payment of monies owed the
league body. However, Justice Olasuyi Olateru-Olagbegi of the Federal
High Court, Lagos, did not reckon with Globacom’s claims as she ordered
the telecommunication company to pay up the contract fee of the
2009/2010 season owed NPL valued at slightly over Nine hundred million
naira.
Pull quote: No part of this subsisting legal agreement gives one party the right to act unilaterally
Leave a Reply