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FG To End Shady $70Million Yearly Ports Contracts - Politics - Nairaland

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FG To End Shady $70Million Yearly Ports Contracts by Blue3k(m): 6:58pm On May 13, 2017
The Nigerian Ports Authority says it is ready to end joint venture agreements with two companies that managed and dredged the Lagos and Bonny access channels, after a PREMIUM TIMES investigation showed both firms sidestepped the nation’s procurement laws to win multibillion naira contracts, yet failed to deliver due benefits to government.

The firms, Lagos Channel Management and Bonny Channel Management, were formed in 2006, after NPA entered into joint venture partnerships with some “technical partners”, including Dredging International, Vinci, IPEM and Dapesa Maritime International.
The partnership, according to official sources, was for capital and maintenance dredging of the Lagos and Bonny channels, the provision of navigational aids and removal of wrecks. NPA holds 60 percent stakes in the companies.

But for more than a decade, NPA officials fraudulently bypassed federal public procurement laws to award multibillion naira contracts to the private companies, an investigation by PREMIUM TIMES showed in 2016.
Bonny Channel Management got at least N717 billion worth of contracts without openly bidding for them. No competitive procedure was followed in the awards, as required by law.


Each year, NPA said, the two companies got contracts worth $70 million without competition.
The ports authority’s new managing director, Hadiza Bala-Usman, who was appointed last year, has now initiated a process of terminating the joint venture agreements.

In an April 2017 letter, obtained by PREMIUM TIMES, Mrs. Bala-Usman requested legal advice from the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, after intimating him of the NPA’s decision to terminate the agreements.

She said while the broad objectives for setting up the joint venture companies remain laudable, the new management was concerned about the structure of the agreements based on the following:

“I. The effect of the Procurement Act 2007 and the seeming circumvention of same in joint venture agreements – Whilst noting that two of the agreements (Bonny and Lagos Channel Management Companies) pre-dated the Procurement Act, the mode of execution of yearly budget and expenditure needs to be clarified in line with the objective of open competitive bidding as enshrined in Public Procurement Act 2007.

“II. Profit – Despite the volume of uncompetitive dredging works being awarded to the joint venture companies annually, which is in the range of $70,000,000 (Seventy Million United States Dollars), they declare minimal profit to shareholders (including NPA with 60 per cent ownership).

“III Audit – The present arrangement where the technical auditor is paid by the joint venture company allows for conflict of interest and may affect the quality of the evaluation reports provided by the auditor.”


Mrs. Usman said the arrangement with the companies “as conceptualized is incapable of delivering optimum benefit to the government.”

She continued that a review of the operations and the returns on capital invested by the government, indicated that in the face of dwindling revenues of government, “a more cost effective approach” could be adopted.

She then said the NPA would have to opt for other methods of carrying its dredging activities, instead of the abused joint venture deals.

“It has become apparent that other options or models of carrying out the dredging activities of the authority should be identified and explored, including but not limited to migrating from the present model of joint venture arrangement to management contracts,” she said.

The NPA managing director could not be reached to comment for this story. Multiple telephone calls to her failed to go through. Some of our sources in the agency later said she was travelling in Indonesia.

A review of the NPA’s joint venture agreements suggests a system whereby its officials, in collaboration with private sector partners, steal revenues from the government through fraudulent procurement process, and sometimes needless contracts.

For instance, while a technical consultant hired by NPA, Mobetek International Ltd., “clearly advised” against the establishment of a channel management company for the Calabar navigation channel, according to an official correspondence seen by PREMIUM TIMES, NPA still went into a joint venture deal with Niger Global Engineering and Technical Company Limited, a firm owned by Hope Uzodinma, the Senator representing Imo West Senator.

The NPA partnered with Mr. Uzodinma’s firm to form the Calabar Channel Management, and handed the company $12.5 million in 2014, without any bidding, for the dredging of Calabar channel.

The consultant had advised against the establishment of a management company for the Calabar channel because the volume of the ship traffic was low and “did not justify a joint venture arrangement which is normally funded from ship dues”.

Yet, Mrs. Usman told the Minister for Transportation, Rotimi Amaechi, that the Calabar dredging work was never done, and the matter, PREMIUM TIMES is aware, is now being investigated by Economic and Financial Crimes Commission (EFCC).

Source: http://www.premiumtimesng.com/news/headlines/231124-exclusive-nigerian-govt-to-end-shady-70-million-yearly-ports-contracts.html

4 Likes 3 Shares

Re: FG To End Shady $70Million Yearly Ports Contracts by kolaaderin: 8:00pm On May 13, 2017
Nigeria is sold out

10 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by SalamRushdie: 8:04pm On May 13, 2017
Almost a trillion naira worth of contracts in a decade ..na wa oo

8 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by NgeneUkwenu(f): 8:04pm On May 13, 2017
PDP!!!

21 Likes 2 Shares

Re: FG To End Shady $70Million Yearly Ports Contracts by Blue3k(m): 8:42pm On May 13, 2017
This is insane they are basically robbing country through under the table contracts. It's no coincidence that the company NPA has 60% ownership of keep getting contracts. Crazy it took a decade to uncover this cesspool of fraud in red. If Buhari can get a few prosecutions and clean house in this area kudos to him.


“It has become apparent that other options or models of carrying out the dredging activities of the authority should be identified and explored, including but not limited to migrating from the present model of joint venture arrangement to management contracts,” she said.


This is part of why I don't like the government running these businesses. They might be better just managing the contracts. It's funny from full ownership, to joint venture and now final solution being managing contracts. Curruption kills alot of basic services in this nation.


Story you guys would like: davidif omohayek mapet BigIyanga EVarn LordAdam16 Jetleeee

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Re: FG To End Shady $70Million Yearly Ports Contracts by Nobody: 10:22pm On May 13, 2017
Lalasticlala evening don come for Lagos ports oh

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Re: FG To End Shady $70Million Yearly Ports Contracts by EVarn(m): 11:10pm On May 13, 2017
We need a better public procurement system in Nigeria.

2 Likes 1 Share

Re: FG To End Shady $70Million Yearly Ports Contracts by Blue3k(m): 11:15pm On May 13, 2017
Keneking:
Lalasticlala evening don come for Lagos ports oh

Hopefully this gets front page. People on this website like conspiracy theories. At least they'll have a real one to read about with names instead of shadowy cabal stories.

Most of the issues with Nigeria curruption subverting law or simply irresponsibility like meningitis outbreak. They new ahead of time yet they didn't prepare til people died.

EVarn:
We need a better public procurement system in Nigeria.

We need to start with baby steps like fixing blue bold point 3. Why should the technical auditing company be paid by the joint venture company.

4 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Babacele: 8:00am On May 14, 2017
NgeneUkwenu:
PDP!!!
I don't ever want to hear that plague of a word- ever again!

5 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Blue3k(m): 10:49am On May 14, 2017
SalamRushdie:
Almost a trillion naira worth of contracts in a decade ..na wa oo

Its truly stunning how much curruption there is. The NPA either does single bidding or dummy companies give illusion of competitive bidding. Link to previous investigation at bottom.

PREMIUM TIMES found that the same CCM has a working relationship with another company called Nigeria West Minister Dredging Marine Limited. It is these handpicked companies, some of them amorphous, that NPA parades to give a semblance of compliance with the Procurement Act under its restrictive tendering. Other times it is just single bid process involving only one company.

Source: http://www.premiumtimesng.com/investigationspecial-reports/216639-special-report-npa-officials-passed-procurement-laws-corner-n717-billion-contracts.html

5 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Dottore: 12:03pm On May 14, 2017
Chai

1 Like

Re: FG To End Shady $70Million Yearly Ports Contracts by BlueMags(m): 12:04pm On May 14, 2017
good!
Re: FG To End Shady $70Million Yearly Ports Contracts by raker300: 12:05pm On May 14, 2017
To to to to to to to to to..the government sha

Why not announce these things after it has been done

Am yet to see anything started and completed by this FG

1 Like

Re: FG To End Shady $70Million Yearly Ports Contracts by raker300: 12:06pm On May 14, 2017
NgeneUkwenu:
PDP!!!
i hope you know 80% of apc members were former pdp?

14 Likes 2 Shares

Re: FG To End Shady $70Million Yearly Ports Contracts by Nobody: 12:06pm On May 14, 2017
No b to end am b wahlala but na where the money go enter.
Re: FG To End Shady $70Million Yearly Ports Contracts by ElPadrino33: 12:07pm On May 14, 2017
Please when is Buhari coming back ?
Re: FG To End Shady $70Million Yearly Ports Contracts by ednut1(m): 12:07pm On May 14, 2017
woe unto Britain for giving us independence

3 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Sunnycliff(m): 12:07pm On May 14, 2017
So many avenues to steal in this country. Plugging all these loopholes no be small thing o

6 Likes 1 Share

Re: FG To End Shady $70Million Yearly Ports Contracts by greatwhite(m): 12:08pm On May 14, 2017
In my opinion the following are the most corrupt govt departments in nigeria.

1. Presidency
2. NASS
3. NNPC
4. NIMASA
5. NPA
6. Customs

Ps: NPA is a learner compared to some others

8 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Alisegun(m): 12:10pm On May 14, 2017

Re: FG To End Shady $70Million Yearly Ports Contracts by jericco1(m): 12:12pm On May 14, 2017
What will dey do with the money?

2 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by ekensi01: 12:15pm On May 14, 2017
Nigeria the country that only extract from youth and keep then behind plans. I no go talk on this topic.

2 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Nobody: 12:16pm On May 14, 2017
Nooooooo

Somebody wants to end someone's source of awoof money.

Abeg...make we take to the street protest this wiccked decision by the Buhari Government, which is most definetly aimed at truncating the futures of Nigerians yet unborn

(And if the above does not work....we can always blame them evil Nartherners...)

grin

5 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Nobody: 12:16pm On May 14, 2017
You guys have not seen anything.

Had a friend whose dad owned a paper tug boat leasing company.

They made nothing less than $100,000 a day leasing out non existent boats to NNPC and the likes.

The guy is a big baller. Stays in a $40k serviced apartment here in Lagos and you guys would be here shouting on needless fights that don't add one naira to your pocket. The corruption in Nigeria. Only God knows when it would end.

12 Likes 1 Share

Re: FG To End Shady $70Million Yearly Ports Contracts by arsenal33: 12:17pm On May 14, 2017
raker300:
i hope you know 80% of apc members were former pdp?
They left the most crooked 20 percent behind

4 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by fkj950ax(m): 12:18pm On May 14, 2017
UgwuKristian:
Ok, Meanwhile that's a rare photo of Afonjas going to church today at Benin with our NCAN truck, grin cheesy grin .

How old are you?

4 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by Pavore9: 12:20pm On May 14, 2017
Those companies are fronts.

4 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by 2n2k(m): 12:24pm On May 14, 2017
For instance, while a technical consultant hired by NPA, Mobetek International Ltd., “clearly advised” against the establishment of a channel management company for the Calabar navigation channel, according to an official correspondence seen by PREMIUM TIMES, NPA still went into a joint venture deal with Niger Global Engineering and Technical Company Limited, a firm owned by Hope Uzodinma, the Senator representing Imo West Senator.

The NPA partnered with Mr. Uzodinma’s firm to form the Calabar Channel Management, and handed the company $12.5 million in 2014, without any bidding, for the dredging of Calabar channel.

The consultant had advised against the establishment of a management company for the Calabar channel because the volume of the ship traffic was low and “did not justify a joint venture arrangement which is normally funded from ship dues”.

Yet, Mrs. Usman told the Minister for Transportation, Rotimi Amaechi, that the Calabar dredging work was never done, and the matter, PREMIUM TIMES is aware, is now being investigated by Economic and Financial Crimes Commission (EFCC).

Is that not the same Senator Uzodinma as the Chairman of senate committee on Customs, that is always shouting about fraud in maritime trade and Customs?

So he too dey follow chop. Very soon, he will go to the floor of the senate to claim being witch hunted.

9 Likes

Re: FG To End Shady $70Million Yearly Ports Contracts by UgwuKristian: 12:25pm On May 14, 2017
fkj950ax:


Is it because I am an Afonja?
Yes, Brown roofed Afonja.

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