The recent re-engagement of the Intels Nigeria Limited by the management of the Nigerian Ports Authority (NPA) as a Service Boat Operator is raising dust among operators and staff of the industry.
The stakeholders are worried that the existing rules and regulations regarding due process were not followed in reinstating the company as a port operator, and vowed to expose what they described as underhand deal between some senior directors and Intels officials.
This situation is currently threatening the relative peace and harmony that the ports 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 extant law in re-instating Intels is seriously eroding confidence in the management of the NPA, raising questions about transparency and accountability in ports business.
Recall that shortly after the expiration of Intels’ contract and subsequent exit from the boat pilotage operations in 2020, NPA, under its former managing director, Hajia Hadiza Bala Usman, announced that the agency had decided not to renew the contract, and called for bids from interested port operators.
This led to serious legal issues between Intels and the NPA, as the company approached the courts to challenge the refusal of NPA to renew its contract as a boat operator.
While the matter was still pending in court, Hadiza Bala Usman was sacked, and there were clandestine moves to reinstate Intels. Series of letters were allegedly 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.
In a letter dated February 23, 2021 from the office of the former chief of staff to the president, Professor Ibrahim Gambari, SH/COS/23/A, addressed to the Hon 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’s 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 Hon 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 knew that their contract as managing sgent in charge of Boats Service Operations had expired, the company also participated in the bid process, but was 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.
But, the Intels decided to file a suit to frustrate the conclusion of the exercise, a development that has 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.
The minister then 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, Intels decided to file the suit using a contract earlier awarded to one of its sister companies, Deep Offshore Nigeria Limited, in 2011 for construction and development of Onne 4b, knowing full well that the service boat contract from which it was disqualified is completely different from that which 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 20 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.
Mohammed Suleiman,
Lagos