Facts emerged on Tuesday that Integrated Services Limited (INTELS), owned by the Presidential candidate of Peoples Democratic Party (PDP), Atiku Abubakar has paid whooping sum of $48 million into Federal Government’s coffer.
The detail of the payment was contained in a report submitted by the House of Representatives’ Ad-hoc Committee which investigated the process that led to the termination of the contract between Nigerian Ports Authority (NPA) and INTELS.
The revenue represents the outstanding arrears owned to NPA spanning from October 2016 to October 2017.
The Ad-hoc Committee chaired by Pally Iriase, Deputy Chief Whip also emphasised on the need for the protection of $2.8 billion total projected investments of Phase 4b project and the need to avoid somersault of government’s policy.
It was also affirmed that the contractor (INTELS) which entered into public private partnership contract with Federal Government through NPA as managing agent for the monitoring of oil and gas industry related activities in the compulsory pilotage district within the Exclusive Economic Zone since 1998, has finally complied with the remittance of revenue into the Treasury Single Account (TSA).
INTELS alleged that the implementation of the TSA policy undermined the company to secure repayment programme on which the funding of amortised projects are based and will directly undermine the well-intended Federal Government amortised projects and leave the contractors at the mercy of the creditors.
The company further submitted that the TSA policy took away contractor’s right to deduct its earned commission for pilotage fees collected contrary to the agency agreement, adding that the suggested transfer of 100% pilotage revenue with the commission to TSA will result in disruption of the pilotage operations ad it has become increasingly difficult for CBN to release monies already transferred to TSA to the beneficiaries even after the approval of NPA.
But during the consideration of the report, members of the House of Representatives rejected the Ad-hoc Committee recommendations on the premise that it lacks detailed information.
The report was initially slated for consideration on the 12th of December, 2018.
Analysis of the report showed that INTELS had complied with
The Committee recommended that Nigerian Ports Authority (NPA) and INTELS Nigeria Limited should sign the new Standard Operating Procedure in the Supplemental Agreement, which should be in the best interest of Nigeria.
The House also urged NPA to formally withdraw the notice of termination of contract agreement since INTELS Nigeria Limited has complied with the Federal Government Policy on Treasury Single Account (TSA).
Speaking at the botched consideration of the report, Sergius Ogun (PDP-Edo) who argued that there were obvious lapses in the investigation, called for proper investigation to be carried out.
Ogun during a chat with Legislative Correspondents after the plenary, explained that the House rejected the report because there was “not much detail which made members to feel that the investigation wasn’t thorough.
“And from what we heard, INTELS people didn’t even attend the investigative hearing. So the House ruled that the committee should go back and do a thorough job.”
Ogun wondered why the government was receiving 28 percent revenue recovery when Federal Executive Council (FEC) allegedly approved 50 percent.
The Ad-hoc also urged that a schedule for the repayment plan for the amortisation policy should be proposed and signed by both parties within one month upon the adoption of this recommendation.
To this end, the Ad-hoc urged that “NPA should henceforth adhere strictly to the provisions of the Nigerian Ports Authority Act in the administration and management of its operations.
Similarly, the Ad-hoc Committee proposed the need for the Ad-hoc Committee and Committee on Legislative Compliance to ensure strict implementation of the above recommendations.
According to him, the Ad-hoc Committee ascertained that the notice of termination served to INTELS was done without abiding to due process and suggested that a status quo be maintained and the notice of termination be rescinded.
But members who opposed the Ad-hoc Committee’s position argued it appeared to cast INTELS as the victim of the policy.
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