President Muhammadu Buhari has directed the Bureau of Public Procurement (BPP), and the Federal Ministry of Transportation to ensure that the procurement process on the embattled boat service contract in the pilotage district of Lagos, Warri, Bonny/Port-Harcourt and Calabar, which expired on August 8, 2020, be concluded in 60 days.
According to a letter addressed to the Attorney General of the Federation (AGF)/Minister of Justice, and the Minister of Transportation, with reference number: SH/COS/23/A/229, dated January 7, 2022, the president directed that the procurement process initiated by the Nigerian Ports Authority (NPA), which was submitted to the Federal Ministry of Transportation be forwarded immediately to the BPP for action.
The letter, which was signed by Ibrahim Gambari, the chief of staff (COS) to the President, further directed that upon receipt of the no-objection approval from the BPP, a memorandum be presented by the Ministry of Transportation to the Federal Executive Council (FEC) for consideration.
It also stated that the Ministry of Transportation should ensure that the process is concluded within 60 days of the president’s directive to avoid further loss of revenue by the Federal Government.
BusinessDay understands that in September 2020, the NPA announced the termination of its boat service contract with INTELS Nigeria Limited after the expiration of a 10 years contract in August 2020.
INTELS disagreed with the NPA and took the matter to court after which a Federal High Court in Lagos granted an interim injunction stopping the NPA from terminating the role of INTELS Nigeria Limited as manning agent in the Pilotage Districts of Lagos, Warri, Bonny/Port Harcourt and Calabar.
Read also: Nigeria sees the largest increase in UK scholarships
Interestingly, Buhari also directed the AGF to ensure quick determination of the cases in court in view of their economic importance.
After a review of submissions made by the NPA and INTELS, the AGF had months back written to Mr. President in a letter dated November 18, 2021, with reference MJ/DSD/23/VII, stating that the NPA neither suspended nor terminated any of its contracts with INTELS.
“There is certainty in the duration of the contract and the position of the law remains clear that a written contract freely entered into by the parties is binding on them.
Accordingly, the contract for manning agent awarded to Messrs INTELS in 2007 validly came to an end and extinguished pursuant to the terms of agreement between the parties, which specified an end date of August 2020. The agreement did not provide for any further extension of the contract in favour of INTELS,” the AGF letter reads.
AGF further stated that after the expiration of the contract, the NPA started the procurement process to appoint another manning agent in order to forestall any break in the service being rendered.
Continuing, the AGF letter further reads: “NPA submitted that it concluded the tender/bidding process and forwarded the result to the Minister of Transportation for the same to be presented for FEC’s approval.
INTELS resorted to litigation to frustrate the conclusion of the procurement process based on its grievance on a different subject-matter.
Before the Mr. President’s directive, the BPP in a letter addressed to the COS to the president, with reference, BPP/DG/2021/007, dated March 9, 2021, stated that the decision by the NPA to initiate a procurement process in anticipation of the expiration of the contract for boat operation manning agent was in order.
“The correct procedure is that contracts should be won through a proper procurement process that complies with the provisions of the PPA, 2007,” the letter signed by Mamman Ahmadu, director-general of BPP stated.
However, in October 2021, four companies including Pacific Silverline Ltd, Isasha Investment Ltd, ICA Logistics Ltd and Nexttee Oil & Gas Trading Co. Nig. Ltd, issued a pre-action notice to the NPA over alleged plans by the Authority to award boat service contracts in the four pilotage districts to an entity that did not participate in the procurement process as required by the Public Procurement Act.
Following the litigations against the NPA’s procurement process, the boat service operations in the four pilotage districts have been left unattended for close to a year and five months, with consequent revenue losses to the nation.
