The House of Representatives, on Wednesday, unveiled plans to investigate the legality of the $195,300,000 (equivalent of N59.840 billion) awarded by the Federal Ministry of Transportation to a foreign private company, HLS International Limited (HLSI), for the supply of certain security and surveillance equipment and systems in 2017.
The resolution was passed sequel to the adoption of a motion sponsored by the Chairman, House Committee on Media and Public Affairs, Hon. Benjamin Okezie Kalu, who accused the Executive arm of the government of usurping the powers of the National Assembly on the appropriation of funds.
In his lead debate, Hon. Kalu observed that the $195.300 million also include the establishment of ‘Integrated national Coastal Surveillance and Waterways protection solutions with command and control of Infrastructure in the Nation’s Territorial waters’.
He said: “The House also notes that in addition to the contract sum of $195,300,000, the Nigerian Maritime Administration and Safety Agency (NIMASA) agreed to pay the sum of $19,530,000 to HLSI as Management Training Consideration, and according to Appendix 4 of the agreement, both sums would be paid in monthly instalments, over a period of 36 months from July 2017 until June 2020, as further payments were also made as at July 2017 to date.
“The House is further notes that Section 80(3) and (4) of the Constitution of the Federation Republic of Nigeria, 1999 provides that – (3) No sums of money shall be withdrawn from any public fund of the Federation, other than the Consolidated Revenue Fund of the Federation unless the issue of those sums of money has been authorized by an Act of the National Assembly.
“No amounts of money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly.”
While expressing displeasure over the legality of the contract or otherwise, he argued that National Assembly is the only body constitutionally allowed to authorise any expenditure from all public funds of the Federation.
“The House is aware that the National Assembly has neither authorized nor appropriated any monies for the Deep Blue Contract or any monthly expenditures according to the foregoing payment schedule.
“The House is also aware that the 8th House Representatives investigated the Deep Blue Contract following petitions from civil groups that the contract was fraught with sharp practices and that in March 2018, the Committee on Public Petitions recommended an outright termination of the contract for violating Appropriation laws as it was not in the national budget.
“The House recalls that the Deep Blue Contract has since its execution, attracted public outcry regarding the grave national security implications of ceding the patrol of waterways from the statutory duties of the Navy to a private foreign firm, thereby undermining national sovereignty and security, following which President Muhammadu Buhari terminated the contract in 2018.
“The House is concerned that despite the foregoing, the Deep Blue Contract has remained illicitly financed with monies neither appropriated nor authorized by the National Assembly.
“The House is worried by allegations that the Deep Blue Contract has remained serviced using monies diverted from the Cabotage Vessel Financing Fund (the Cabotage Fund) which was established by Coastal and Inland Shipping (Cabotage) Act as a fund strictly for the purpose of providing financial assistance to Nigeria operators to develop indigenous ship acquisition capacity in domestic coastal shipping; and which by Sections 42,44 and 45 of the Cabotage Act, can only be administered under the Ministry’s guidelines approved by the National Assembly solely for Nigerian beneficiary.
“The House is also worried that the payment of N59,839,930,000 made to the foreign company to secure and survey our Coastal waterways is astronomically higher than the annual capital expenditure budget of the Nigerian Navy which was N27.2 billion in 2019; N20 billion in 2020, N26 billion in 2021 and approved the proposal of N27 billion in 2022.
“The House is disturbed by allegations that HLSI has purchased more security surveillance equipment that was not in the original contract, thereby covertly using funds meant for the benefit of Nigeria and Nigerians to finance the security acquisitions of a foreign entity.
“The House is also disturbed that the standards of most of the platforms are not good enough which has also violated the contract agreement as it was alleged that some of the ‘newly procured ships have to be towed by Navy before they could even arrive in Nigerian waters,” he noted.
To this end, the House mandated the Committee on Navy to investigate the legality of the Deep Blue Contract agreement whether it is in line with extant Laws and Regulations, the standards of all platforms purchased to the Nigerian Navy and determine whether they are according to specification(s); the actual amount of money spent by the government on the Deep Blue Contract and any other matter(s) relating to the Deep Blue Contract and report back within eight weeks for further legislative action.
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