The Pacesetter Transport Services (PTS), the firm saddled with the operation of the Oyo State public transport service is currently embroiled in a breach of contract scandal which is rocking the company presently.
The scandal is running into several Millions of Naira and the company involved has threatened to ensure that all outstanding debts owed by PTS will be retrieved.
“We are also going to ensure that accrued interests are paid on the debts,” one of the officials of the aggrieved company told our correspondent.
At the centre of the controversy is O’Triumph Multi-Business Limited, a consultancy firm, which entered into agreement with PTS in September, 2023 to provide professional management consultancy to enhance the delivery of its (PTS’) service to the people of Oyo State in accordance with the mandate and guidelines provided by the state government led by Governor Seyi Makinde.
According to the agreement in possession of this medium, O’Triumph was tasked with overseeing the pacesetter card system, reconciliation, and vendor management on behalf of PTS with its Super-vendors, and Touch & Pay Technologies (TAP).
“We have delivered on all the agreements on our part. But it’s rather unfortunate that PTS has reneged on fulfilling its own part of the agreement which is paying for the service rendered by us,” The Representative of O’Triumph told our medium.
According to him, the company has provided all the necessary services needed to enhance the work of PTS but when it comes to payment, the later has reneged.
“Despite repeated promises to settle outstanding payments, PTS has failed to fulfill its financial obligations, leaving us in a very precarious situation,” The Representative lamented.
He stated further that, “the relationship between O’Triumph Multi Business Limited and Pacesetter Transport Services was formalized through a Memorandum of Understanding (MOU) in September 2023. The MOU outlined the terms and conditions under which O’Triumph would provide professional management consultancy services to PTS.
“According to the agreement, O’Triumph was tasked with overseeing the pacesetter card system, reconciliation, and vendor management on behalf of PTS with its Super-Vendors, and Touch & Pay Technologies (TAP). The scope of services was clearly defined, and both parties agreed to a fee structure that included a monthly consultation charge and a contingency fee based on percentage of card sales, uniforms, forms, and revenue generated from vendor dealings. It was a comprehensive agreement designed to ensure a smooth and mutually beneficial partnership.
“From the outset, O’Triumph fulfilled its obligations under the contract. The company provided the agreed-upon consultancy services, overseeing the card system, managing vendor relationships, and ensuring the smooth operation of PTS’s transportation services. However, despite O’Triumph’s diligent performance, PTS failed to meet its financial obligations.
“According to the MOU, PTS was required to pay O’Triumph on a monthly basis for the consultancy services rendered. However, by November 2024, it became apparent that PTS was falling behind on payments, The payments were not forthcoming which is a clear breach of the agreement”.
The Representative stated that when the money expected for their company was not coming, its officials approached the PTS officials.
“They not only acknowledged the debt but also promised to pay by Thursday, 5 December, 2024. This promise provided a glimmer of hope for O’Triumph,” he said.
However, to his chagrin and disappointment of the entire management team of O’Triumph, December 5 came and went, and as at the time of writing this report, no payment has been made by PTS.
“Frustrated but still hopeful, O’Triumph continued to engage with PTS in good faith. In subsequent communications, PTS made another promise, this time committing to settle the outstanding payments by January 2025. This new deadline was given by the Chairman & Sole Administrator of PTS, Hon.Dr. Ibraheem Oladeji Salami DIKKO. We agreed to wait, trusting that PTS would honor its commitment. Unfortunately, this is March, PTS has yet to make any payments or provide a clear explanation for the delay,” The representative narrated.
The failure of PTS to meet its financial obligations has had a significant negative impact on O’Triumph Multi Business Limited. As a professional consultancy firm, O’Triumph relies on timely payments to cover its operational costs, including salaries and other business expenses.
Thus, the failure of transport company to offset its debts has created a financial strain on the company, forcing it to dip into its reserves and delay other projects.
The Representative said further, “the breach of contract has damaged the trust between the two parties. O’Triumph entered into the agreement with the expectation that PTS would honor its commitments. The repeated failure to do so has not only caused financial hardship but has also raised questions about PTS’s reliability and integrity as a business partner.
“O’Triumph has already attempted to resolve the issue through negotiation, but PTS’ failure to communicate or make payments has left little room for an amicable resolution.
“In addition to seeking payment for the outstanding fees, O’Triumph may also be entitled to claim damages for the financial losses incurred as a result of PTS’s breach. This could include compensation for the additional costs of borrowing, lost opportunities, and other expenses directly related to the non-payment”.
