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Tag: LADOL Free Zone

  • Africoat serves Notice of Arbitration Proceedings against LADOL

    Back in January, it was reported there was dispute between Africoat, a pipe-coating and logistics company, operating in the LADOL Free Zone in Lagos and LADOL.

    The dispute focused on the termination of Africoat’s operating licence and eviction from the free zone by LADOL. But Africoat insisted that the eviction notice was contrary to the service agreement between it and LADOL because it only gave the company nine days to remove its equipment against the 180 days specified by the agreement.

    Investigation has revealed that Africoat has served Notice of Arbitration on LADOL in a suit number FHC/L/CS636/19, at a Federal High Court in Lagos.

    According to the court document, Africoat is seeking an Order of Interlocutory Injunction restraining LADOL from taking action against Africoat equipment, facilities or personnel pending the determination of the Arbitral Reference.

    It was gathered that Africoat operated from LADOL Free Zone for several years before LADOL terminated its operating license.

    In November 2018, it was announced that Africoat had been served an eviction notice from the LADOL Free Zone over outstanding debt.

    LADOL also accused Africoat of breaching free-zone regulation – LFZ Regulations, including failure to start operations.

    Africoat had alleged that LADOL was directly responsible for rejecting the import of pipes for an Africoat coating contract, forcing Africoat’s client to cancel the contract.

    Africoat has continued to protest LADOL’s unreasonable “take it or leave it” gestapo tactics with regards to unwarranted charges levied without services provided.

    Fatal Shooting at LADOL free zone threatens Nigerian economy

    Africoat argued that it was never made aware of such charges, neither did it agree to the charges, and was not offered the chance to discuss or negotiate the charges once imposed.

    Africoat said it made several written attempts to resolve the outstanding issues but received no response from LADOL.

    One of such charges being challenged by Africoat is the ground rent that LADOL  allegedly levied over 6,000% mark-up over LADOL’s land lease rates paid to Nigerian Ports Authority (NPA).

    Despite intervention by Minister of State for Industry, Trade and Investment, Africoat continued to experience a lack of cooperation from LADOL in providing services afforded Free Zone Enterprises.

    The Eviction Notice has not been rescinded and the Service Agreement remains terminated.

    LADOL was however forced to issue Africoat’s Operating License by the Minister but has failed to offer the services to support the licences.

    Africoat has now served Notice of Arbitration to remedy the injustices perpetrated by LADOL on Africoat. This is the latest setback for LADOL Free Zone.

    It was reported in the media that on April 8, an operative of the Nigerian Security and Civil Defence Corps (NSCDC) contracted by LADOL to guard the free zone shot and killed his colleague and an SHI-MCI Korean employee.

    It was also reported that the Nigerian Police has concluded its investigations on the death of the Korean and the gunman will be charged for murder.

    LADOL was accused of failing to take action against previous complaints by SHI-MCI of armed guards presenting a safety threat to employees at SHI-MCI FZE yard.

    This incident has been taken up by the Korean Embassy in Nigeria and has been reported in the international media.

    The management of the free zone is accused of developing a reputation for hostility towards international business, having been allowed to operate as a monopolistic single source service provider within a government jurisdiction with severe consequences to the investment climate in Nigeria.

    International business will not invest in the Free Zone under such current business model.

    Recent events in the free zone are setbacks to the Nigerian Government’s mandate to attract foreign investment.

    It is time for the federal government agencies to take control of this environment that has become out-of-control.  The solution to these crises in the free zone is for the authorities to create competition for the free zone management/operator and let a free and fair market dictate the commercial environment.

    This is the healthy agenda put forward by the administration of President Muhammadu Buhari but is being violated by the management of this free zone.

    Akpwan-Etukudon, an investment advisor, writes from Warri

  • Police to charge NSCDC official for alleged killing of Korean

    The police have resolved to charge the Nigerian Security and Civil Defence Corps (NSCDC) official guarding the LADOL Free Zone for the alleged murder of a Korean employee of SHI-MCI FZE on April 8.

    The operative allegedly shot and killed his colleague guarding the free zone before he allegedly shot the Korean employee.

    The decision to charge the suspect was the outcome of a police report issued by a Deputy Commissioner of Police (DCP) in charge of the State Criminal Investigations and Intelligence Department (SCIID), Yaba, Lagos, DCP Yetunde Longe, dated April 16.

    The suspect was detained by guards and employees of SHI-MCI FZE after the alleged killing.

    The case was then transferred to the SCIID for investigation.

    Police investigation showed that Innocent Oshemi shot and killed the Korean with his official G5 rifle while on duty at the LADOL Free Zone.

    The investigating team took statements from the witnesses and visited the scene of the shooting.

    The coroner confirmed that the victim died as a result of the injuries sustained from the gunshot, including ‘penetrating missile injury to the body.’

    He will, therefore, be charged with murder and the case file will be forwarded to the Director of Public Prosecutions.

    Samsung Heavy Industries Nigeria (SHIN) yesterday called for justice for the victim’s family.

    At a news conference in Lagos attended by the family of the deceased Korean victim, the Managing Director of SHIN, Jejin Jeon, said: “SHIN will ensure that LADOL and the NSCDC are held accountable for any organisational and management failing that allowed the gunman to carry out this terrible crime at the LADOL Free Zone.”

    Jeon showed the Closed-Circuit Television (CCTV) of the shooting of the guard and Korean employee to reporters.

    The CCTV showed that the LADOL guard fired deliberately at his NSCDC colleague, killing him with three shots.

    He then moved to shoot the Korean employee working in a crawler crane within the SHI-MCI yard.

    SHI said the CCTV and the decision of the Police to charge the suspect with murder were further proof that the statements by LADOL and the NSCDC after the shooting that the shootings were in error were false.

    In a statement on Wednesday, the Chief Operating Officer of SHIN, Mr. Frank Ejizu, hailed DCP Longe and her team for their investigation of the case.

     

  • Police to charge LADOL guard with murder over killing of Korean

    Following the fatal shooting of a Korean employee of SHI-MCI FZE at the LADOL Free Zone on April 8, the police have resolved to charge the Nigerian Security and Civil Defence Corps (NSCDC) personnel guarding the LADOL Free Zone for murder.

    The NSCDC operative also shot and killed his colleague guarding the free zone moments before he shot the Korean employee.

    The decision to charge the gunman was the outcome of a police report issued by a Deputy Commissioner of Police in charge SCIID, Yaba, (DCP), Yetunde O. Longe, dated April 16, 2019.

    The gunman was detained by guards and employees of SHI-MCI FZE after he had carried out this killing.

    The case was then transferred to the State Criminal Investigations and Intelligence Department of the Nigeria Police Force for investigation.

    The police investigation found the gunman, Innocent Oshemi shot and killed the Korean SHI-MCI employee with his official G5 rifle while on duty at the LADOL Free Zone.

    The investigating team took statements from the witnesses to the incident and visited the scene of the shooting.

    The coroner confirmed the victim died as a result of injuries received from the gunshot, including ‘penetrating missile injury to the body.’

    On careful consideration of the evidence gathered by the investigating team, the Police established a case of murder of the Korean SHI-MCI FZE employee against the gunman.

    He will therefore be charged with murder and the case file will be forwarded to the office of the Director of Public Prosecutions.

    Samsung Heavy Industries Nigeria (SHIN) had at a press conference called for transparent justice for family of the victim in the case.

     At a press-conference in Lagos attended by family of the deceased Korean victim, Managing Director of SHIN, Jejin Jeon said: “SHIN would ensure that LADOL and the NSCDC are held accountable for any organisational and management failing that allowed the gunman to carry out this terrible crime in the LADOL Free Zone.”

     Jeon also showed CCTV of the shooting of the guard and Korean employee to journalists at the conference.

    The CCTV clearly showed the LADOL guard fired deliberately at his NSCDC colleague, killing him with three shots at the scene.

    He then moved to a different location where he also deliberately shot the Korean employee working in a crawler crane within the SHI-MCI yard.

    SHI stated the CCTV and the decision of the Police to charge the suspect with murder were further proof that statements by LADOL and the NSCDC after the shooting that the shootings were in error are false.

    In a statement on Wednesday, the Chief Operating Officer of SHIN, Mr. Frank Ejizu, commended the Deputy Commissioner, DCP Yetunde O. Longe and her team for their thorough investigation of the evidence of the case.

    ‘’This will result in the perpetrator of this terrible crime being charged for his acts. We invite the Director of Public Prosecutions to conduct a transparent and fair assessment of the evidence and to ensure that justice is done and seen to be done.

    “Justice is important for the victims, for their families and also for all the employees working in the LADOL Free Zone, who are understandably fearful for their safety.

    “The international business community will also be watching this case closely to determine whether Nigeria remains a safe working environment for their employees,” Ejizu explained

  • Addressing human cost of mismanagement of LADOL Free Zone

    On Monday April 8, 2019, an operative of the Nigerian Security and Civil Defence Corps (NSCDC) in the LADOL Free Zone in Lagos shot and killed his colleague during an argument.

    He then shot and seriously injured a Korean employee of SHI-MCI FZE, who later died at the hospital as a result of injuries he suffered.

    This was an entirely unprovoked attack and there would have been more casualties if the other guards and SHI-MCI employees did not display act of bravery by detaining the gunman as he tried to leave the yard.

    The NSCDC gunman was contracted to LADOL at the time of the incident. LADOL is obliged to provide security over the free-zone via its affiliate and the Zone Manager, Global Resources Management Free Zone Company, in accordance with the NEPZA regulations. However, this shooting is a major security breach by LADOL of NEPZA regulations.

    According to media reports, SHI-MCI FZE was said to have reported several security incidents to LADOL relating to disorderly and dangerous conduct of armed guards and how their employees were vulnerable and subject to any imminent life-threatening danger but no action was taken, which led to this fatal incident.

    Following the shooting, the head of the NSCDC, Abdullahi Gana, made a public statement expressing sympathy for the victims but claiming that that shooting was “an accidental discharge.”

    But eyewitness accounts showed that the position of  NSCDC boss that the shooting was “in error” was false as two people were shot by the NSCDC gunman in two different locations far apart.

    The Korean employee was performing maintenance on a crane at the time and was shot in a completely unprovoked attack inside the crane.

    This is the most serious failing yet by the Free Zone operator.  The armed guards are supposed to be properly trained to protect Nigerian and foreign workers, who should feel empowered to promote Nigeria with pride.

    It is vital that there is a thorough and independent investigation into this incident, and that those responsible for such a serious failing that has resulted in deaths are held to account. If obviously false statements, such as those issued by the NSCDC, are accepted then more lives may be lost in future occurrences.

    READ ALSO: Korean dies from LADOL shooting incident

    This incident was a violent act in a Free Zone, which is supposed to be a safe zone for foreign nationals, investors and Nigerian workers conducting their daily business.

    NEPZA Regulations clearly states: “The Authority or Management of a Free Zone shall provide security over the premises, properties and facilities within the Free Zones.”

    In the same vein, LADOL Regulations states:  “The Zone Management shall provide security over the premises, property and facilities within the Zone”.

    To avoid this kind of incident, Zone operators like GRMFZC (LADOL Group) should have measures in place to ensure the safety and security of all their subleases at the zone and if those measures fail there should be contingencies.

    There is no doubt that this incident will have a further deterrent effect on foreign businesses looking to invest in Nigeria.

    Akpan-Etukudo, an investment advisor, writes from Warri