The Nation Newspaper

Tag: NPA

  • How NPA can aid Buhari’s economic plan

    How NPA can aid Buhari’s economic plan

    (NPA) can generate over N40 billion yearly if all revenue loopholes are plugged, The Nation has learnt.

    To achieve this, a senior Federal Ministry of Finance (FMoF) official said, the NPA management must be compelled to embark on programmes that will make the ports more effective and efficient.

    To the official, President Muhammadu Buhari will realise his dream of boosting the economy and creating jobs by focusing more on NPA.

    The official said in 2011, NPA remitted N29 billion into the Federation Account, making its highest remittance in its history.

    He urged the government to compel the management to fashion out the strategy to increase its revenue.

    NPA, the official said, needed experienced and core professionals to hold key positions to boost operations and generate more funds.

    He accused NPA of institutional weakness bordering on lack of coherent policy framework on port administration, noting that most of the countries in West Africa are building ports that can berth vessels with capacity for 14,000 containers.

    The 2006 port concession, he said, was a bold move to reposition NPA and make it competitive.

    “Chief Adebayo Sarumi is reputed as the father of the new NPA, on account of successfully shepherding the port concession process that led to ceding of certain aspects of NPA’s operations to the private terminal operators for efficient service delivery.

    “Succeeding Chief Sarumi was Mallam Abdusalam Mohammed, whose most pressing challenge was to ensure that the ship of port concession did not miss its course nor sink. In all sincerity, he tried to strike a balance between the old order and the new NPA, where entrenched interests of the union, the new terminal operators, the shipping line agents and the larger stakeholders became an issue.

    “Based on the current happenings in the port industry, NPA needs to devote ample time and resources to the actualisation of Deep Sea Port projects, especially the ones in Lekki, Lagos and Ibom in Akwa Ibom State. It should also be focused on the proposed Badagry port.

    “President Buhari must ensure that the current management of NPA turns the ports into an enterprise that will yield more revenue into government covers through improved vessel calls and an enhanced volume of cargoes coming to the country.

    “The greatest attestation of NPA as a successful business enterprise that is capable of paying returns on investments to its owners became manifest under its former Managing Director, Omar Suleiman.

    “Suleiman was a home grown CEO, having joined the organisation immediately after graduating from the university. It was Suleiman who unprecedentedly remitted a whopping N29 billion into the Federation Account in 2011; a feat yet unparalleled in the NPA’s history.

    “Significant projects such as the Lagos harbour moles, quay wall and apron, installation of marine fenders in Zone 1, 2 and 3 were carried out by him.

    “Other capital projects he embarked upon included the rehabilitation of Port Harcourt port road network and water supply, connection of Onne Port to National Grid (33KVA) from FOT Junction to Main Gate of Federal Terminal, rehabilitation of Julius Berger Terminal ‘C’ Old Port Warri, Delta State, reconstruction of Perimeter Wall Fence at Warri port, dredging of Escravos-Warri-Aladja to Koko Channel in the Warri Pilotage District.

    “He also kick-started a programme for the development of Deep Sea Port in Nigeria. This desire accelerated the vision for Ibaka Deepsea and Lekki Deep Sea Port.

    “The Ibaka Deep Sea Port as envisioned by Suleiman is to be the hub of oil and gas operation in the Gulf of Guinea. The port is said to be between 17 and 18 meters draught without dredging and its quay area is expected to span over two kilometres. It is designed to accommodate mega vessels of over 10,000 TEUs,” the official said.

    The official said, if not for unforeseen challenges bordering on administration, “the Ibaka Deep Sea Port would have become operational by this year, as that was the port’s projected take-off date.”

    Association of Nigerian Licensed Customs Agents (ANLCA), National President Prince Olayiwola Shittu lamented what he called the “harsh conditions” at the Apapa and Tin-Can ports and urged NPA to address the situation.

    “Stiff competition for hub status the Nigerian ports are struggling for is expected from West and Central African coast from Mauritania to Angola. This maritime axis is one of the few regions of the world with a dominant hub distribution port.

    “Nigerian ports and their handlers especially the current top officials of NPA should emulate the strategy of Omar Suleiman, who within the shortest available time was able to actualise the dream of a post-concession port system in which users and provider of port services are happy.

    “The port concession is a bold move to reposition the Nigerian Ports Authority and make it a competitive enterprise, with a capability for efficient service delivery.  The exercise was also meant to turn the NPA into an enterprise that will yield more revenue into government covers through improved vessel calls and an enhanced volume of cargoes coming to the country. To a large extent, this has been achieved.

    “Most of the terminals have also grown their throughput by about 250 per cent since port concession. Therefore, if President Buhari administration can block all the loopholes, nothing stops the NPA from remitting between N40 billion and N50 billion to the Federation Account every year.

    “It is to the credit of Engr Suleiman that the former Governor of Akwa Ibom state, Chief Godswill Akpabio handed over the Certificate of Occupancy (C of O) of the over 5580 Sq meters of land area for the new port to the NPA. That Akpabio handed over the master plan of the port to him is now history, but what the NPA has been able to do with it, is the question its management should tell Nigerians,” Shittu said.

    The ANLCA chief said the ports of Singapore and Egypt are contributing immensely to their economy and urged NPA to emulate them.

     

  • Bayeros deny links with Intels, NPA

    Bayeros deny links with Intels, NPA

    The Nigerian Ports Authority (NPA) has said that the Ado Bayero family of Kano has no stakes in the ports development giants, Intels Nigeria Limited.

    They made this disclosure against the background of media reports alleging that the family had connections with Intels.

    However, the NPA in a statement unequivocally stated that the Ado Bayero family of Kano has no stake of any kind in the port operating firm, Intels Nigeria Limited.

    The statement reads: “Our Managing Director Alhaji Sanusi Lamido Ado Bayero is the first son of the late Emir of Kano, Alhaji Ado Bayero. Contrary to reports in a major national daily and response to other enquiries, the Nigerian Ports Authority asserts as follows: Neither the late Emir of Kano nor his estate holds any subsisting equity in Intels Nigeria Limited.”

    The management further noted that, “The Ado Bayero family disposed of the equity interest of the late Alhaji Ado Bayero in Intels Nigeria upon his demise. This transaction was effected over six months before President Goodluck Jonathan appointed the distinguished corporate lawyer Alhaji Sanusi Lamido Ado Bayero as managing director of the Nigeria Ports Authority.

    “Interested persons desirous of truth in public discourse could verify this transaction from the Corporate Affairs Commission or the concerned Intels Nigeria Limited.”

    “Alhaji Sanusi Lamido Ado Bayero is committed to best practice standards in corporate governance as he guides the affairs of Nigerian Ports Authority. He would not breach such standards for any reason, given his noble antecedents and experience in company administration.”

    It added that, “Alhaji Sanusi Lamido Ado Bayero is committed to leading Nigerian Ports Authority to oversee port regulation as a neutral arbiter without bias to any interest or stakeholder.”

  • Intels urges Ladol, others to respect NPA

    Intels urges Ladol, others to respect NPA

    Intels Nigeria Limited has urged Ports & Terminal Operators Limited (PTOL), Nigerdock and Ladol to respect the power of the Nigerian Ports Authority (NPA) to issue directive as to the appropriate port terminal for vessels to berth.

    NPA as the landlord , Intels argued, has the power to give directives to all terminals and jetties operators in the country.

    Its General Manager, Legal, Mike  Epelle said despite the fact that  the ex-parte orders made by the Lagos Division of the Federal High Court in the suits instituted by PTOL, Nigerdock and Ladol against the NPA are at variance with an earlier judgment delivered by the Port Harcourt Division of the Court last year, he has confidence in the ability of the courts to do justice.

    Reacting to insinuations  by the Managing Director of PTOL, Mrs Liizzie  Ovbude  published in a natioanl daily (not The Nation), Epelle said   in a judgment delivered at Port Harcourt Division of the Federal High Court, by Justice Lambo  Akambi on July 8, last year, in the suit filed by Associated Maritime Services Limited (AMS) against  City Real Estate & Property Management Company Ltd. with Suit No.FHC/PH/CS/74/2014 ruled inter-alia:“That under an by virtue of the Nigerian Ports Authority Act CapN-123 Laws of the Federation of Nigeria 2004 and in particular, Sections 7(a),(b),(c) and (k); 8(1) and 32(1) thereof, the Nigerian Ports Authority is vested with powers to enforce compliance with the arrangements made by the BPE designating all Federal Ports in the country as to guarantee, among others, efficient management of ports operation.

  • Apapa Traffic: Truck drivers get 48-hour ultimatum

    Stakeholders at the petroleum industry on Wednesday held a meeting with men of the security forces in a deliberate effort to end incessant gridlock on the Apapa, Oshodi-Mile 2 express road. The meeting at the NNS Beecroft, Navy yard at Apapa, was called to identify and proffer solutions to the causes of traffic problems in order to free the entire area. Addressing journalists after the meeting, Commander Ovenseri Uwadiae, who is the Chairman of the occasion and Commander of NNS Beecroft, lamented the economic loss brought upon the country by the perennial gridlock as well as threat to the general security to some extent. He further assured that with the commitment and support of the stakeholders to confront the traffic problem, the entire gridlock in the area can be completely solved. According to the Commander, some of the solutions proffered by stakeholders can be categorised into long and short term. “But for now, members of the stakeholders have resolved to focus on immediate solutions capable of bringing relief to motorists using Apapa Mile2 express way road. “Members of the stakeholders have agreed to set up a committee that would implement all the decisions taken at the meeting,” he noted. He also maintained that the Nigeria Ports Authority (NPA) would lead other members of the committee to inspect and ensure that shipping companies are operating loading bays in order to reduce number of trucks around the area and only trucks that have been marked for loading are within Apapa vicinity. Similarly, the Lagos State Traffic Management Authority (LASTMA),Police, NPA and other stakeholders are therefore expected to fashion out alternative routes for trailers and tankers coming to Apapa – Mile 2 area for business in a way that they will only occupy a dedicated section of the service lane. This, Uwadiae maintained is necessary to bring orderliness on the road while reiterating his conviction that with the support of every stakeholder, motorists would soon begin to experience stress-free driving around the said axis. The commander said the management of NPA, must see to it that concessionaire operating at the port improves on human and facilities in order to reduce time being spent by trucks at the ports entrance, as spill over from the entrance often lead to traffic gridlock. The meeting urged the truck owners to cooperate with the management of the NPA in the area of registration to reduce cases of truck drivers packing within the area to solicit for business in the port, that such action is partially responsible for road blockade at Apapa. So too, the commander disclosed to media that he has been reliably informed that the repair of Apapa Mile 2 road will commence in earnest by Julius Berger. On his part, the General Manager, LASTMA, Eng. Babatunde Edu reaffirmed the commitment of the agency to pay attention to traffic along the axis and therefore solicited for the support and cooperation of other stakeholders for roads to be free of any gridlock. Other stakeholders at the meeting are leaders and representative of RTEAN, AMATO, NARTO, POLICE, NPA, FMW, UTQEN and Nigeria Navy

  • Bayero replaces Abdullahi at NPA

    Bayero replaces Abdullahi at NPA

    President Goodluck Jonathan has approved the appointment of Alhaji Sanusi Lamido Ado Bayero as the managing director of the Nigerian Ports Authority (NPA).

    Sanusi, a lawyer, from Kano State takes over from Mallam Habib Abdullahi, who has been relieved of his appointment as the authority’s Managing Director of the NPA.

    A statement yesterday by the Special Adviser on Media and Publicity, Dr. Reuben Abati, said the appointment of the new NPA Managing Director takes effect from tomorrow.

    “President Jonathan thanks the outgoing managing director for his services and wishes him well in his future endeavours,” the statement said.

  • Firm sues govt over directive to NPA, NIMASA, NIWA on funds

    Firm sues govt over directive to NPA, NIMASA, NIWA on funds

    A sHipping firm has launched a legal battle against the Federal Government over its directive to some maritime agencies to pay their money into the Consolidated Revenue Fund (CRF).

    Elshcon Nigeria Limited is contending that the directive to the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) and the National Inland Waterways Authority (NIWA) negates their enabling laws. Minister of Finance, Dr. Ngozi Okonjo-Iweala directed NPA, NIMASA and NIWA, among other agencies, to close their accounts and transfer them into the Treasury Single Account (TSA) before the end of last month.

    Elshcon’s counsel Mike Igbokwe (SAN) said the directive should have excluded NPA, NIMASA, and NIWA – in line with their enabling laws.

    In a suit filed before Justice Ibrahim Buba of the Federal High Court in Lagos, last week, the Attorney-General of the Federation, the Accountant-General of the Federation and the Minister of Finance are named as defendants.

    After filing the suit, it was gathered, Igbokwe wrote to NIMASA, NPA and NIWA, not to take any action in furtherance of the directives pending the determination of the case.

    Igbokwe told The Nation that he wrote the agencies in order not to stifle the court from exercising its jurisdiction on the pending case before its determination.

    “The essence of the letter is to draw the attention of the agencies to some of the relevant judgments of the Supreme Court showing the attitude of courts in such circumstances as this and as they relate to persons that are ‘servants and agents’ of the parties to the suit that may knowingly assist the parties in stultifying the exercise of the court’s jurisdiction on the matter because as sought in the motion and originating summons, the substance of the matter is that the defendants are to be restrained in whatever method they may use in committing the prohibited acts.

    “It is also to ensure that the rule of law prevails, abuse of court process is avoided and the court is not presented with a fait accompli by any of the defendants or its agents or servants since the agencies have become aware of the reliefs on the motion on notice and originating summons filed by our client and that they are not just pending, but a date has been fixed for the hearing of the said Motion,” he said.

    Igbokwe added: “The Supreme Court held that any action or conduct of one or the other of the parties to the action taken whilst an application is pending in court for the obvious or subtle purpose of stultifying the exercise by the court of its jurisdiction and its duty to consider the application on its merits, must not be countenanced by the court and the court would ensure that at the stage of the proceedings, it is not possible for any party to present it with a fait accompli.

    “The same court also held that the court still has jurisdiction to commit any person, whether as a servant or agent of the party restrained or even a stranger, who knowingly assists in the breach of the injunction of the defendants.”

    Igbokwe said the plaintiff has applied ex parte for an order restraining the 1st Defendant either or his agents from implementing the directives pending the determination of the case.

    The plaintiff, it was learnt, is seeking six reliefs, including an order that the defendants should stop forthwith, the implementation of the directives.

    The court has directed the plaintiff to serve the defendants the motion for interlocutory injunction and originating summons. It also granted accelerated hearing of the case which comes up on  Thursday.

  • Calabar dredging suit: Defendants to be served outside jurisdiction

    Calabar dredging suit: Defendants to be served outside jurisdiction

    Justice Emmanuel Obilo of the Federal High in Calabar, Cross River State, yesterday granted Sam Nmeje’s prayers to serve the defendants outside the jurisdiction of the court.

    Nmeje instituted the suit to declare as illegal the contract awarded for the dredging of the Calabar Channel.

    The President, the Attorney-General of the Federation (AGF), the Minister of Transport, the Nigerian Ports Authority (NPA), the Bureau of Public Procurement (BPP) and the Calabar Channel Management Limited are the first to sixth defendants.

    Presenting a motion ex parte yesterday, Mr Monjok Agom, who held brief for the plaintiff’s lawyer, Mr Reginald Osere, sought two reliefs.

    These are: •An order granting the plaintiff/applicant leave “to serve originating processes in this suit to the 1st to fifth defendants outside the jurisdiction of the court” and

    •“An order directing that the sixth defendant to be served by substituted means by publishing same in one national newspaper on the grounds that the bailiff could not effect service after multiple trials.”

    After listening to Agom’s presentation, Justice Obilo said the applicant had satisfied the requirement for granting the first relief sought.

    But the second relief was refused because the applicant had refused to fulfil the requirements for its grant.

    “There is nothing placed before this court to show that the bailiff ever attempted to serve the sixth defendant at any time. The sixth defendant is entitled to personal service,” he said.

    Justice Obilo fixed the report of service in the case for March 24.

    Speaking with our reporter after the court sitting, Agom said: “Today was a routine application for the case to begin. The parties ought to be served so that at the end of the day, we know that these are the issues before the court. So, for this application, the rules require that if you are to serve an application outside of a state – because some of the parties are to be served in Abuja – you ought to bring a formal application to that effect so that permission would be granted to you; so that you now serve outside of the state.

    “For the first to fifth defendants, the court accepted that they should be served outside Abuja, but refused that the sixth defendant could not be served by a publication in the newspaper, and ought to be served personally.

    “The judge noted that there was nothing in the application to show that the bailiff had actually tried to reach them without success.”

  • Calabar Port: Dredging ignites hope on $10b investment

    Calabar Port: Dredging ignites hope on $10b investment

    •Investors worry over litigation

    Optimism was rekindled over the   $10 billion investment in Calabar port following the flag-off of its dredging last weekend.

    The huge investment, operators said, had been put on hold for seven years.

    The flag-off ceremony was done by  the Minister of Transport,  Senator Idris Umar, who represented President Goodluck Jonathan.

    But some of the major investors at the port, it was gathered, are worried over the litigation that may follow the flag-off ceremony by the company that bided for the contract before the procurement process was cancelled by the management of Nigerian Ports Authority (NPA).

    Some of the companies that have huge stakes in the port, include General Electric, Tinapa Business Resort, Calabar Free Trade Zone, ECM Terminals Ltd, Intel Services and Cocoa Industries.

    Some of the officials of the companies, who spoke with The Nation under the condition of anonymity said they are happy over the efforts of the government to dredge the channel, but are worried over the controversy surrounding the award of the N20 billion contract by NPA, which they said may stall the process.

    The shallow nature of the water channel, they said, has made it impossible for bigger vessels to sail through, thus contributing to the reason many importers are not patronising the port and the reason why they have not made profit on their investment.

    Findings revealed that the draft at approach of the port was 6.4 metres at high tide and 5.4 metres at low tide.

    The concession agreement, the investors said, stipulated that the Federal Government will take the draft to 9.5 metres and that the Bureau on Public Enterprise (BPE) had told them that the draught would be achieved on start of business.

    Between August 2007 and December 2012, it was learnt, only 680 vessels patronised the port. ”The non-completion of the dredging of the channel to the advertised draft of 9.4 metres is the biggest threat to the development of the port with adverse effect on our financial projection and cargo throughput was predicted on the completion of the dredging as assured during the concession exercise.

    “Companies like Flour mills, Unicem and Dangote and others do not enjoy the economy of scale in their vessel nominations to Calabar due to the fact that their full load arriving vessel has to lighten some cargo tonnage in Lagos before calling at Calabar Port due to draft limitations. Hence, a cargo ship load that could have come at once per voyage ends up being conveyed down to Calabar Port in two or three voyages,” the official said.

    Findings revealed that no container ship visited the port in the last four years.

    The Minister at the venue said the dredging would be performed by the Calabar Channel Management (CCM) and Messrs Niger Global Engineering and Technical Company Limited.

    He explained that the channel would be deepened from its present eight metres to 10 metres.

    Investigation revealed that it may take the dredging firms up to two years before they will complete the remaining 24 kilometres to be dredged.

    Sixty killometers of the channel, the Minister said, has been accomplished through the past dredging efforts.

    The Calabar port, he said, would attract more ships by the time the contractors finished their job.

    In his speech, the Cross River State governor, Senator Liyel Imoke said he was not happy about the poor state of the port.

    He said nine years after, the Calabar channel dredging contract had not been completed.

    “We hope that this time around, the project will come to stay. This project is not about dredging of Calabar port channel, It has become a sentimental issue to us.”

    He said the port has been severely under served the people of the area and that it has not realised its true potentials.

    The governor, however, noted that the successful completion of the project will boost the economy of the state, noting that many companies depend on the port to realise their objectives.

    In his address, NPA’s  Managing Director, Mallam Habib Abdullahi said his agency  would ensure the success of  CCM in its operations and overall management of the channel.

    He assured that the activities of CCM would open up  market for Calabar region and the entire South- South.

    A member of NPA board, Senator Florence Ita Giwa urged the the government  to modernise the Ikom B ridge and Odukpani  road, saying that, without it, the dredging would amount to nothing.

  • N20b Calabar port contract: Firms may sue NPA, BPP

    N20b Calabar port contract: Firms may sue NPA, BPP

    The crisis generated by the award of the N20 billion Calabar channel contract by the Nigerian Ports Authority (NPA) to Calabar Channel Management Limited (CCM), a joint venture of NPA and a firm owned by a Peoples Democratic Party (PDP) senator is not over, it was learnt.

    Some of the firms that bidded for the job, it was gathered, have contracted their lawyers to challenge  the “intrigues and scandals” that led to the cancellation of the procurement process of the contract by the NPA and its subsequent award in defiance of due process.

    The Bureau of Public Procurement (BPP), it was learnt, may be summoned to court over the contract.

    Sources close to some of the firms said they were considering their lawyers because they considered the method adopted by the NPA as unlawful, adding that they may institute a legal action against the two government agencies.

    Calabar Channel Management (CCM) Limited, the firms alleged, was not subjected to a pre-qualification test to ascertain its competence as required by the law before being awarded the contract.

    A senior official of one of the affected firms who craved anonymity said: “The law stipulates that a procurement of such magnitude must pass through the Bureau of Public Procurement (BPP) for a certificate of “No Objection” which is issued after grievances raised by the contending parties have been addressed.  But, through a letter in the last week of August, NPA notified bidders of government’s decision to nullify the re-procurement process for the channel in ‘public interest’.

    “We learnt that NPA was actually compelled by the Ministry of Transport to discontinue with the re-procurement process to avoid   jeopardising the lawmaker’s chances of clinching the job and that is why we are considering the idea of taking the matter to court in the interest of the nation.

    “It was gathered that the senator had about three years ago, latched on the failed 2010 procurement exercise to out-plot all those vying for the job.   Apparently convinced that his firm stood no chance in a competitive bid, he decided to exploit his relationship with the President to bring his dream to fruition.

    “He came up with the idea of a joint venture between his company and the NPA.  Armed with this, he approached the president to seek his assistance in making this a reality. “The president was said to have been favourably disposed to this but asked him to first explore the possibility of getting a company with dredging capabilities to partner with.

    “Help finally came in form of a Presidential Approval, which resulted in the formation of CCM. However, to make it seem as though the Transport Ministry initiated the move, the minister had to write the president asking for approval to form a consortium for the dredging of the channel which immediately received the President’s nod.”

    Officials of the aggrieved firms also said NPA’s equity participation in CCM is only 53 per cent while the senator’s firm has 47 per cent. This, according to them, is unlike other arrangements in which NPA has interest and where the profit sharing formula is 60 per cent for   NPA and 40 per cent for the private firm.

    “We the aggrieved bidders are insisting that the right thing still needs to be done in respect of the Calabar Port or we will head to court to resolve the matter.

    “Only the six bidders that were pre-qualified for the 2010 exercise deserve to be considered for the job.  This is more so as the dredging of the Calabar channel has served as a conduit pipe in the last 20 years,” they said.

    Contacted, a member of the NPA’s board who does not want his name in print said  the joint venture deal was sealed without reference to the NPA board and this, he said, explains why its chairman and the current PDP Board of Trustee chairman, Chief Tony Anineh was against the award of the contract to CCM.

    The board, he said, was infuriated by the deal that its chairman countered in a petition he sent to the Minister of Transport, Senator Idris Umar.

    “In the protest letter, Chief  Anineh on behalf of the board warned of the dire consequences of   awarding such a huge contract to a company, which to us, “has no reference to past jobs done”.

    “Anenih also detailed the irregularities that characterised the creation of CCM including 16 flaws which the Ministry of Justice pointed out in respect of the joint venture agreement and which still appeared in the final document,” the board member said.

    Findings revealed that the public outcry that greeted the creation of CCM and the inclusion of Calabar Port and   Ibaka Deep- Sea Port has forced CCM to remove Ibaka Port from the joint venture agreement.

    The document communicating CCM’s resolution on Ibaka Deep-sea Port to the Corporate Affairs Commission (CAC) was signed by one Odutan  Olumide Abayomi  and  the  senator.

    It reads:  “At  the extra-ordinary  General  Meeting of the above -mentioned company duly  convened and held at its  registered  office on  the12th  of July  2013, the  following resolutions were  proposed and duly  passed as follows:

    That the Memorandum and Articles of Association of  the Company  be altered as follows:

    That all the  clauses i.e. 3(a) (b) (c) (d) (f) and (h) where  the word  Ibaka Deep  Sea  Port appear  be removed  from the  Memorandum of  Association of the  company.

    That the articles of Association of the company be altered to reflect the  above;

    That a Memorandum and  Articles  of  Association  incorporating the  said alterations be  filed with  the  Corporate  Affairs Commission ,Abuja and  a certified true copy of  same  be obtained.

    Calls made to phone of the Assistant General Manager, Public Affairs, NPA, Mr Musa Iliya, were picked but not audible enough while the text message sent to his mobile phone was not replied as at the time of going to the press.

  • Bidders accuse NPA of awarding N20b Calabar Port contract without due process

    Bidders accuse NPA of awarding N20b Calabar Port contract without due process

    • ‘Why we cancelled bids’

    Did the Nigerian Ports Authority (NPA) award the N20 billion Calabar Port dredging contract without following due process? This is the puzzle stakeholders in the maritime industry are seeking to unravel over the contract.

    The contract, sources said, was awarded to the Calabar Channel Management (CCM) without passing through the Bureau of Public Procurement (BPP) as stipulated by law.

    BPP was established in 2007 to monitor public procurement, harmonise government’s policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement.

    Speaking when he received Southsouth and Southeast traditional rulers, led by Edmund Daukoru, the Amanyanabo of Nembe, in his office, the Minister of Transport, Senator Idris Umar, said President Goodluck Jonathan approved the port’s dredging.

    But the company that got the job never participated in any procurement, according to sources.

    The last procurement for the capital dredging of the Calabar Channel was held in 2010.

    Sources at the BPP said only six firms — Jan De Nul, Dredging International, Westminster Dredging, China Harbour Engineering, Lagos Channel Management (LCM) and Van Oord – participated in the procurement after satisfying the pre-qualification conditions.

    The exercise, a source said, was however, nullified and a  re-procurement ordered, following attempts by officials of the Ministry of Transport and NPA to manipulate the process in favour of the Lagos Channel Management (LCM).

    The re-tender organised by NPA for the firms that participated in the 2010 bid, it was learnt, included CCM, but the bid, the source said, never sailed through.

    “Soon after the commencement of the process, NPA called off the exercise, citing Section 28 of the Procurement Act.

    “That section of the Act stipulates that a procuring entity may reject all bids at any time prior to the acceptance of a bid, without incurring any liability to the bidder,” the source said.

    It is not clear whether the Act empowers the NPA or the government to award the contract unilaterally even if the bids submitted are rejected or cancelled.

    “The question is, how many companies were invited to submit bids and also went through the procurement proceedings before the contract was approved by the President? Where is the record of the procurement proceedings? Where is the input of Nigeria Institute of Purchasing and Supply Management, the Nigerian Bar Association and other critical stakeholders required by the Act? No wonder the stakeholders in the maritime sector are piqued by the way the contract was awarded and the choice of the company for the job,” the official said.

    The official added that in awarding a contract of this nature, there must be transparency and accountability.

    Investigations revealed that CCM is a partnership between NPA and Niger Global Engineering and Technical Company Limited, which belongs to a lawmaker said to be a member of the Peoples Democratic Party (PDP), The Nation learnt that Niger Global owns 46.7 per cent of the Joint Venture Company; NPA 53.3 per cent.

    Some aggrieved maritime stakeholders, who pleaded for anonymity, said the rejection of the bids by other competitors was a ploy to circumvent the due process and give the contract to a party faithful who is in the forefront of the campaign for the President’s second term bid.

    According to them, soon after the process was truncated, Umar told traditional rulers from the Southsouth and Southeast that the contract had been awarded.

    The decision to discontinue the process, revealed, was conveyed to bidders three weeks ago through a letter signed on behalf of NPA’s Managing Director by the General Manager (Procurement), T. S. Izukun.

    The letter, titled: Re: Re-Procurement of Capital Dredging of Calabar Port Assess Channel: Cancellation of Bidding Process, reads: “…This is to convey to you government’s decision to discontinue with the procurement process of the above-mentioned project.

    “The cancellation is pursuant to Section 28 of the Public Procurement Act 2007.

    “However, you are please requested to forward your account details to the Secretary of the Tenders Board to facilitate the refund of the money paid for the bidding documents.

    “Any inconveniences are highly regretted.”

    The stakeholders are alleging impunity in the award, claiming that it was through a similar ruse and  a purported  president Approval that the maintenance dredging of the Calabar Port went to the same company.

    The offer of the maintenance job to the firm was also opposed. The Chairman of PDP Board of Trustees, Chief Tony Anenih, in a petition to Umar, said CCM neither participated in the bidding for Calabar channel nor its competence and capabilities assessed as was the case with other firms.

    Anenih pointed out that the agreement between NPA and Niger Global, which culminated in the formation of CCM, is skewed in favour of the lawmaker’s firm that even amendments recommended by the Ministry of Justice were not reflected in the final agreement.

    He said: “The consortium has no reference whatsoever of previous jobs done. They were completely alien to the Calabar channel project and did not even take part in the bids of 2010 and the later procurement process.

    “The consortium was not prequalified and did not pass through the selection process like other companies. It, therefore, follows that the Presidential approval for the appointment of the consortium led by Niger Global Engineering and Technical Company Limited to enter into a joint venture with NPA which culminated in the agreement to form Calabar Channel was obtained without following due process.”

    Efforts to reach CCM proved abortive.

    This is the fourth controversial attempt at making Calabar River navigable. Two occurred under this administration.