The recent re-engagement of Intels Nigeria Limited, by the management of the Nigerian Ports Authorities (NPA) as a Service Boat Operator, is raising dust among operators and staff of the industry.
Dr Nuel Okunna, in a statement made available to newsmen on Monday in Abuja, on behalf of the ‘Concerned Stakeholders’, alleged that existing laws and regulations regarding due process were not followed in re-instating the company as a port operator and vowed to expose what they described as an underhand deal between some senior directors and Intels officials.
According to him, the situation is currently threatening the relative peace and harmony that the port business environment had enjoyed following the exit of Intels from the Boat Operator business after its contract expired in 2020.
The stakeholders are concerned that the alleged non-compliance with the law in re-instating Intels is seriously eroding confidence in the management of the port authorities, raising questions about transparency and accountability in port business.
They threatened that some documents backing the claims of irregularities in the manner that Intels Nigeria Limited was re-engaged, as a Boat Operator would made public.
The statement read in part: “It would be recalled that shortly after the expiration of the contract of Intels and subsequent exit from the boat pilotage operations, in 2020, the management of the NPA, under its former Managing Director (MD), Hajia Hadiza Bala Usman, announced that the authorities had decided not to renew the contract, and therefore called for bids from interested port operators.
“This led to serious legal issues between Intels and the NPA management, as the company approached the courts to challenge the refusal of the NPA not to renew its contract as a boat operator.
“While the matter was still pending in court, the former MD, Hadiza Bala Usman, lost her job, and moves began behind the scenes to reinstate Intels.
“Series of letters were exchanged between Intels, the new Ports management, and the federal government, on how to resolve the issues.
“However, all efforts by Intel to get its contract renewed failed, as it became clear that the former management did not violate any law in its refusal to renew the contract
“A letter dated 23rd, February 2021, from the office of the former Chief of Staff, Professor Ibrahim Gambari, SH/COS/23/A, addressed to the Honourable Minister of Justice, and copied to the Director General, Bureau of Public Procurement, BPP, and Director General, Infrastructure Concession and Regulatory Commission, the federal government requested for ‘counsel in reviewing the legal and procurement related issues involved in the dispute between the NPA and INTELS’.
“After a thorough review of the issues, in his reply to the Chief of Staff letter, the Minister of Justice and Attorney general of the federation, submitted that the major source of dispute between NPA and INTELS is with respect to the Boats Service Operations Management Contract to monitor oil-related activities in the compulsory pilotage districts within exclusive economic zone on behalf of the NPA.
“He noted that the contract commenced in June 2007 to expire August 2020, pursuant to the agreement between the parties with no further extension, or, renewal of engagement clause by the Honourable Minister of Transport, or, the NPA.
“The minister further submitted that pursuant to the expiration of the contract, the NPA kick-started the procurement process to appoint another Managing Agent, adding that because Intels themselves knew that their contract as Managing Agent in charge of Boats Service Operations, had expired, the company also participated in the bid process, but was found to have violated one of the advertisement criteria and was thereupon disqualified.
“It is pertinent to state that the participation of INTELS in the tender process amounts to an admission that the contract had indeed ended”, the minister submitted according to the statement.
Okunna while giving further insight, however, said the INTELS, decided to file a lawsuit to frustrate the conclusion of the exercise, a development he noted had created vacuum in the provision of critical service in the maritime sector causing loss of humongous revenue from service boat operators to the Federal Government.
He added that the minister had also warned of the “potential exposure of the NPA and indeed the federal government to litigation in view of the restoration of contracts between NPA and INTELS, because the companies that bided for the advertised Service Boat Contract, having been duly pre-qualified may institute legal proceedings against the government if the contract is eventually awarded to Messrs INTELS, a company that was disqualified during the bidding/procurement process.”
“Apparently realising its precarious position, Messrs INTELS decided to file the suit using a contract earlier awarded to one of its sister companies, Messrs Deep Offshore Nigeria Limited, in 2011 for the construction and development of Onne 4b, knowing fully well that the Service Boat Contract from which it was disqualified, is completely different from that which Messrs INTELS is suing NPA for, which it is now relying on to frustrate the Service Boat procurement process
“It is important to state that INTELS, a foreign company, had for more than twenty years dominated maritime business in Nigeria, having been awarded multiple contracts in Onne Terminal A and B, Calabar Port as well as Delta Ports, that are to terminate in 2030, yet, would still choose to struggle for the Boat Contract operations where indigenous( Nigerian) operators are being offered the opportunity to participate as investors,” the Concerned Stakeholders stated.
They, therefore, urged the Federal Government to intervene in ensuring that due process is followed in selection of a new port operator so as not to plunge the maritime sub-sector into unimaginable crisis.
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