— agency says decision is irreversible
Funso Olojo || After two weeks of grandstanding by Intels Nigeria Limited over the termination of its multi-billion naira pilotage contract by the NPA for which it has threatened fire and brimstone, the oil and gas logistics provider has apologized to the Nigerian Ports Authority(NPA) for its intransigence, promising that the company is now ready to comply with the Treasury Single Account(TSA).
The apology of the service provider, which was conveyed to the NPA by Intel’s Gabriel Volpi, came at a time the NPA seemed determined to call the bluff of the logistics provider.
Following the termination of its multi-billion naira pilotage monitoring contract penultimate week by the NPA due to alleged non-compliance with the Federal government’s Treasury Single Account(TSA), Intels, the Oil and Gas logistics provider, has blown its tops, giving the agency seven –day ultimatum to retrace its steps or risk litigation.
The distraught logistics provider also threatened to divest from the $2.6billion Badagry deep sea port project, in addition to sacking thousands of Nigerians in its employ as a result of the contract saga.
But the NPA, despite the latest capitulation of Intels, seemed unperturbed but instead amused by the threats of Intels which industry stakeholders believed was arm-twisting tactics which they claimed was meant to blackmail the NPA.
Ms. Hadiza Bala Usman, the fiery Managing Director of the NPA, said the decision to terminate Intel’s contract was irreversible despite its apology as all necessary arrangements are on to get a replacement for the sacked company.
At a luncheon she had with select journalists in Lagos, Ms. Usman gave a bird-eye view into what led to the contract crisis.
According to her, in her strict adherence to corporate governance practice, extant laws, and the constitution as well as desire to provide a level- playing ground, she disclosed that the present management of NPA discovered that the 17 years pilotage monitoring agreement with Intels was inconsistent with the TSA policy of the Federal government.
‘’So, we opened discussions with Intels on the need to comply with the TSA as the contract agreement runs foul of the policy.
‘’I used 15 months to persuade Intels on the needs to comply with the TSA. Letters were written, meetings were called but the company bluntly refused, insisting that they will hold on to government money, deducts all their charges which are not verifiable before they give the ‘’change’’ to government.
‘’I started this dialogue with them since June 2016. However, Intels insisted repeatedly not to allow the revenue of government be paid into government coffer as the TSA policy stipulates, rather they would hold onto it, deduct their 28 per cent, the cost of amortization and the cost of the funds for amortization before they remit the rest to government coffers.
‘’We said no, this is government revenue and as stipulated in the constitution, all government revenue should be paid into revenue consolidated account.
‘’Intels still refused.
‘’We even made them an offer which we felt will be a middle ground to get out of the stalemate. We proposed that a separate account be opened where both the NPA and Intels will not be able to withdraw but can monitor the accrued proceeds. At the end of every month and after the necessary reconciliation of the funds, Intels could then present its invoice for the services for payment, yet they still refused.
‘’When they raised the issue of possible delay in payment due to government bureaucracy, we pledged that their claims for payment will be done within 7 working days of lodgment and that we pay shall pay interest on a number of days the payment is delayed, they still refused.
‘’We then said no, you can’t take government money, deducts all manner of charges before you remit the balance. It doesn’t work like that. We told them that the old structure could no longer work in view of TSA policy’’, the NPA MD declared.
She observed that a lot was wrong with the agreement which her management was willing to accommodate.
‘’Why should it be the business of NPA how Intels source its funds to prosecute the contract so much so that they even deduct the amortization and the cost of the funds for the amortization, not to talk of the 28 per cent commission.
‘’That is very huge. Where have you heard that 28 per cent is being charged as agency commission?, she asked rhetorically in apparent anger at what maritime commentators described as unwarranted impunity displayed by Intels.
Usman could not understand what emboldened the logistics provider to show undisguised disrespect for the law despite the overtures of NPA and the level the agency bent backward to accommodate the apparent arrogance of the company.
‘’Are they (Intels) above the law? Why should I spend 15 months talking to a private company to comply with the law of the land and the policy of government? No organisation is above the law of the country it operates in. If you want to carry out a business in a country, you must study the laws and learn to comply with them’’, Usman noted, apparently tutoring Intels to be law- abiding.
The NPA MD noted that the agency did not owe any of its contractors who carry out contract services with NPA and wonder why Intels should express fear of possible non- payment for their services if they comply with the TSA.
She also noted that the Intels agreement was signed outside the law by former NPA management, but Usman said now that government has woken up from its slumber and decided to remedy the situation, she said it was pertinent for Intels to comply with the new realities.
The NPA MD declared that it was as a result of the intransigence of intels that made her seek the opinion of the Attorney-General of Federation on the legality of the Intel’s agreement in the face of TSA policy.
‘’When for 15 months of dialogue with Intels, there was no agreement, I had to write the AGF on May 31st, 2017, seeking for the interpretation of the action of Intels because the discussions with the company could not be open-ended. It has to end.
‘’So when in September 27th, the SGF directed that the contract was illegal abinitio and that it should be terminated, NPA was only carrying out the directive of the Federal government and we have communicated to them’’, NPA helmswoman revealed.
She, however, declared that there was no going back on the decision despite the threat of Intels as arrangement was on to engage new contractor that will carry out the services taken from the logistics giant.
Usman also debunked the claim that the termination of the contract will lead to loss of jobs.
‘’There would be no loss of job. The services continue, it is only that Intels is no longer performing these services.
‘’Another contractor we engage shall need the services of these people and NPA too will need their services, so there is no way anybody will lose his or her job’’, she assured.
She promised that NPA will settle all the outstanding bills to Intels , saying her action should not be misconstrued as she was being driven by the need to create a level- playing ground and transparency in doing government work.
Meanwhile, the House of Representatives has intervened in the contract crisis and has mandated its committee to investigate the allegation of non- compliance of Intels with TSA policy.
Intels is co-owned by former Vice President, Atiku Abubakar and Italian businessman with Nigerian citizenship, Gabriel Volpi, a company which Atiku described as his cash cow.