The Managing Director of the Nigerian Port Authority, Hadiza Bala-Usman has said that Integrated Logistics Services (Intels), has been using its political influence to operate outside of the legal framework of the Nigerian maritime regulations.
The NPA boss disclosed this in an interview with Arise TV on Thursday, in response to the contractual and TSA issues between the FG and Intels.
In her interview with Arise News, she said there is nothing political about the FG telling a company to pay what it owes to the TSA.
She said, “I don’t see what is political about a company complying with TSA. So, if government says all revenue of government should go into the Treasury Single Account and a private company refuses to comply, and government says you must comply, what’s political about that?
“In fact, who’s being political here? it is Intels, which has always had political advantage and always difficult to get them to comply with government’s directives. So, can we look at it that way, because I am curious as to what’s political about the fact that your contract ended and the NPA is reclaiming back its service.
“How is it political that your contract ended on August 9 and government said now that your contract has ended, we will continue that service you rendered and pay that your sister company for any revenue that arises and you say ‘No, I must be the service provider’. So, what’s political about that?
She said the political angle to the dispute was caused by Intels’ thinking that it is above regulatory scrutiny, because of its political influence.
“For me, what’s even political is the fact that a company thinks it is above the law, because it has been using its own political influence to operate outside of the legal framework. So, we should be asking Intels why it’s been political with its operations,” she said.
She added that the Service Boats relationship was another added layer to the conflict between the FG and Intels, citing that Intels sued the FG to remain as 3rd party service provider for Service Boats.
“On Intels, we have layers of relations. The noncompliance to TSA after a lot of pushback, and now their contract relationship with us on Service Boats has expired.
“Of course, we have another project to do with them regarding an amortization project. Revenues made from Service Boats is meant to pay for the amortization. But, the point is that Intels need not be the service provider for that service, to enable government repay them for that amortization.
“But of course, they have gone to court, and we are challenging it to ensure the FG gets value for their money,” she added.
What you should know
- Nairametrics reported in 2018 that Ms. Hadiza Bala-Usman revealed how the revenue from the pilotage agreement between the Federal Government, Ports Authority, and Integrated Logistics Services was shared.
- According to Bala-Usman, the agreement allowed Intels to take 28 percent of the generated revenue for its services, while noting that the agreement was silent on the sharing formula for the 72 percent balance between Intels and NPA. This loophole made Intels remit arbitrary payments to the government through NPA at its discretion.
- Intels, in October 2017 had been drawn into a battle with the NPA over the termination of the pilotage agreement with the firm, based on advice by Abubakar Malami, the Attorney General of the Federation (AGF).
- The company had threatened legal action, but later backed down and made assurances that it would comply with the Treasury Single Account (TSA) rules. This led to the issuance of ultimatum to Intels to pay $48million into the TSA.
- The NPA boss said the $48 million is the amount Intels ought to have remitted to the government between November 2016 and December 2017.