Unic Press UK: The Nigerian Ports Authority (NPA) has issued a statement with regard to the reactions of the Nigerian public and the threat by its former agents, Integrated Logistics Services Nigeria Limited (INTELS), to challenge the termination of its boats pilotage monitoring and supervision agreement.
Excerpts of the statement, which was signed by the General Manager of Corporate & Strategic Communications, Abdullahi Goje, reads:
“To start with, we must inform our stakeholders and the general public that the Authority relied on the advice of the Attorney General of the Federation (AGF) and Minister of Justice, in arriving at the decision to terminate the contract. This legal advice was sought after more than one year of attempts to get Intels to comply with the Federal Government’s directive on the Treasury Single Account (TSA). The first such correspondence was through a letter written by the former Executive Director, Finance and Administration, Mr. Olumide Oduntan on June 28, 2016 directing the company to pay all revenues collected on behalf of the NPA into the TSA sub account at the CBN. All further attempts by the Authority to get the company obey this directive was met with various excuses until the Authority wrote to seek the AGF’s legal advise on how to proceed with the NPA/Intels relationship in a letter dated May 31, 2017. As a responsible agency of the Federal Government, the Authority, therefore proceeded to act as advised, which is to terminate the contract forthwith.”
The Nigerian Ports Authority terminated its Agreement with Integrated Logistics Services Nigeria Limited (INTELS) after obtaining a legal advice from the Attorney General of the Federation and the Minister of Justice, Abubakar Malami.
Malami, who responded to the NPA’s letter dated 31st May 2017 seeking advice on how to proceed with the NPA’s contractual relationship with Intel, said:
“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.”