Fg Voids NPA/INTELS Pilotage Agreement - Politics - Nairaland
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| Fg Voids NPA/INTELS Pilotage Agreement by RZArecta(m): 4:54am On Oct 11, 2017 |
• Says contract was illegal ab initio Eromosele Abiodun The federal government has directed the Nigerian Ports Authority (NPA) to terminate the boats pilotage monitoring and supervision agreement that the agency has with Intels Nigeria Limited, a leading integrated logistics and facilities services provider in the maritime and oil and gas logistics sectors of the country, saying that the contract was void ab initio. Conveying the decision of the federal government to NPA, the Attorney General of the Federation (AGF) and Minister of Justice, Mallam Abubakar Malami (SAN), in a letter dated September 27, 2017 to the Managing Director of the NPA, Ms. Hadiza Bala-Usman, said that the agreement, which has allowed Intels to receive revenue on behalf of NPA for 17 years, violates the Nigerian Constitution, especially in view of the implementation of the Treasury Single Account (TSA) policy of government. Based on the directive to terminate the agreement, Intels which was founded over three decades ago by Mr. Gabriele Volpi, an Italian national who also has Nigerian citizenship, stands to lose several millions of dollars in commissions for the monitoring and supervision pilotage services it handles on behalf of NPA on Nigerian coastal waters. To ensure the safety of ships’ passage within Nigeria’s seaports, the NPA, through Intels as its agent, provides pilotage services to guide ships into and out of the ports. The rule of thumb in the maritime industry is that pilotage must be compulsory for all ships of 35 metres overall length or greater unless a valid Pilotage Exemption Certificate is held by the ship’s master. In return for the service, ship owners/companies are required to pay a pilotage fee, which Intels collects on NPA’s behalf and retains 28 per cent of the revenue as commission for the services rendered. However, with the memo written by the AGF, a copy of which was obtained exclusively by THISDAY from the justice ministry, Intels would no longer be allowed to provide the service. Drawing the attention of Bala-Usman to the illegality of the agreement, Malami made it expressly clear that the agreement violates Sections 80(1) and 162(1) and (10) of the constitution, and wondered that the parties – NPA and Intels – did not avert their minds to the relevant provisions when they were negotiating the agreement in 2010. Section 80(1) of the constitution states: “All revenues or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.” Section 162(1) states: “The Federation shall maintain a special account to be called ‘the Federation Account’ into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.” While sub-section 10 of the same section states: “For the purpose of subsection (1) of this section, ‘revenue’ means any income or return accruing to or derived by the Government of the Federation from any source and includes: (a) any receipt, however described, arising from the operation of any law; (b) any return, however described, arising from or in respect of any property held by the Government of the Federation; (c) any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body.” In the letter titled: “Request for Clarification of Conflict Between Executed Agreement and Federal Government Treasury Single Account Policy,” the attorney general said: “I refer to your letter dated 31st May 2017, ref: MD/17/MF/Vol.XX/583 in respect of the above subject matter wherein you sought clarification on the legal issues implicated by the continuous implementation of the Managing Agent Contract Agreement dated 11th February 2010 executed between the Nigerian Ports Authority (NPA) and Intels Nigeria Limited for the provision of boats pilotage operations, in the light of the Federal Government of Nigeria’s Treasury Singe Account (TSA) policy. “Upon my review of your letter under reference and the relevant agreements, I have been able to conclude inevitably that the terms of the agreement as agreed by parties and the dynamics of its implementation which permits Intels to receive revenue generated on behalf of NPA ab initio, clearly violates express provisions of Sections 80(1) and 162(1) and (10) of the 1999 Constitution of the Federal Republic of Nigeria, 1999 (as amended). It is thus curious that parties did not avert their minds to the above provisions of the constitution whilst negotiating the agreement. “The inherent illegality of the agreement as formed has since been expounded by the TSA policy issued by the Head of Service of the Federation on behalf of the Federal Government of Nigeria directing all ministries, departments and agencies to collect payment of all revenues due to the federal government or any of her agencies through the TSA. “The objective of the presidential directive (TSA policy) in exercise of the executive powers of the president under Section 5 of the 1999 Constitution (as amended) was in furtherance of the spirit and intent of Sections 80 and 162 of the constitution and to aid transparency in government revenue collection and management. “NPA being an agency of the federal government is bound by the TSA policy and has not howsoever been exempt therefrom. Due to the constitutional nature of the TSA, where there is a conflict between the TSA and the terms of the agreement, the TSA shall prevail. “Therefore all monies due to the NPA currently being collected by Intels and any other agents/third parties on behalf of NPA must henceforth be paid into the TSA or any of the sub-accounts linked thereto in the Central Bank of Nigeria (information of the account will be communicated in due course) in accordance with the TSA policy. “For the avoidance of doubt, the agreement for the monitoring and supervision of pilotage districts in the Exclusive Economic Zone of Nigeria on terms inter alia that permits Intels to receive revenue generated in each pilotage district from service boat operations in consideration for 28% of total revenue as commission to Intels is void, being a contract ex facie illegal as formed for permitting Intels to receive federal government revenue contrary to the express provisions of Sections 80(1) and 162(1) and (10) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which mandates that such revenue must be paid into the Federation Account/Consolidated Revenue Fund. “In the premise of the above, the conflict between the agreement and the TSA policy presents a force majeure event under the agreement, and NPA should forthwith commence the process of issuing the relevant notices to Intels exiting the agreement which indeed was void ab initio.” http://www.thisdaylive.com/index.php/2017/10/11/fg-voids-npa-intels-pilotage-agreement/ |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by Inception(m): 6:07am On Oct 11, 2017 |
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| Re: Fg Voids NPA/INTELS Pilotage Agreement by aolawale025: 6:23am On Oct 11, 2017 |
Seems Atiku stepped on toes |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by Okoroawusa: 6:38am On Oct 11, 2017 |
Atiku... for 17 years? Money dey this country o! |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by RZArecta(m): 6:41am On Oct 11, 2017 |
 Why are you guys calling Atiku's name na ? |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by Nobody: 6:42am On Oct 11, 2017 |
Will Federal Government also void revenue collection agreements other government agencies have with 3rd parties? The issue should be (1) whether INTELS remits that revenue to FG TSA after collection , (2) if the rates collected by INTELS is fair as obtained in the industry and (3) if the agreement itself is valid I see 2019 here. I thought we had changed. |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by nwaanambra1(m): 6:55am On Oct 11, 2017 |
atiku they yaf com for u! they yaf started by cuting ur jugular - intel nigeria ltd being you major source of income! after intel they will come for your school and claim that it doesnt have legitimate operational license! after ya school they come for your farm and destroy all of them and claim that they need to destroy it to stop the spread of viruses that manifested from your farm! by the time they are done with you, you will be busy trying to build your companies and thereby forget 2019 presidential bid!  THEY KNOW YOU MAY END UP WINNING 2019 AND THEY WILL DO EVERYTHING TO FRUSTRATE YOU! BUT SADLY, THE DAURA DULL.ARDOO DOESN'T KNOW YOU. HE THINKS YOU ARE NNAMDI KANU AND ZAKZAKY THAT HE KILLED AND HIDE THEIR BODIES THEY FORGET WHO YOU ARE! THEY FORGOT YOU DONT LOOK FOR TROUBLE BUT YOU NEVER EVER RUN AWAY FROM A FIGHT! THE DAURA MONSTER WILL BE IN FOR A SHOCKER! THE EVIL MONSTER OF DAURA JUST MET HIS WATERLOO!  2019 WILL BE SUPER FUN! GOING TO ORDER BAGS OF POPCORN, BUCKETS OF BURUKU AND KWOKWO! THIS FIGHT IS GOING TO SUPER INTERESTING! THIS GONE BE GOOD! 1 Like |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by RZArecta(m): 7:48am On Oct 11, 2017 |
nwaanambra1:you take style wicked o |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by agbangam: 8:40am On Oct 11, 2017 |
nwaanambra1: Ur dumb conspiracy theories, u guys politicize everything in this country. Whenever d FG wants to correct some abnormalities u pple always find a way of attaching ethnic/religious sentiment to such policies. Just too bad. Thank God Atiku is from d North else we for no hear word again. 3 Likes |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by SalamRushdie: 8:49am On Oct 11, 2017 |
agbangam: Something must be wrong with your thinking.. Do you believe Intel collects money on behalf of the govt? This is strictly a political move to ground Atikus cash cow and I will tell you for free this decision will put pressure on the economy and further increase the cost of goods and disrupt import and export services in an import based economy .. 2 Likes 1 Share |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by RZArecta(m): 9:23am On Oct 11, 2017 |
SalamRushdie:another angle |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by Vatsyayana: 10:10am On Oct 11, 2017 |
nwaanambra1: It is my prayers that when 2019 comes, you will be alive and healthy to witness the whole drama. Atiku should respect himself honourably. He should not contest. Not because he has no constitutional rights but not to put himself into disrepute of a final nature. 1 Like |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by fyneguy: 10:13am On Oct 11, 2017 |
Atiku burned his fingers by challenging NPA's directive to pay 100% into TSA before making claims for its 28%. Hitherto, INTELS was retaining its 28% before paying the balance to the FG. There's an allegation that INTELS even withheld FG''s funds for long - an abuse. 2 Likes |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by vedaxcool(m): 11:03am On Oct 11, 2017 |
[s] nwaanambra1:[/s] Now who are the Fulani slaves .... or is Atiku now an ipob member. 2019 they queuing behind another Fulani despite all insults they direct at them. 1 Like |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by clevvermind(m): 11:12am On Oct 11, 2017 |
BAD BELLE. |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by ayokellany: 11:13am On Oct 11, 2017 |
SalamRushdie: Stop spilling rubbish. Why on Earth should Atiku be paid 28% for what every Tom Dick and Harry can do in Nigeria. Why must Atika have access to revenue generated for Nigeria before Nigeria and also own the sole right to determine whatsoever he desire to remit ? 2 Likes 1 Share |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by vedaxcool(m): 11:45am On Oct 11, 2017 |
ayokellany: you are dealing with ipob wailing terrorists who prefer to collapse the country and ruin it by supporting thieves while living in mud houses. |
| Re: Fg Voids NPA/INTELS Pilotage Agreement by RZArecta(m): 12:27pm On Oct 11, 2017 |
Online herdsmen have attacked this thread with their burukutu logic |
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