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Reps Probe NPA over Non-remittance of Multi-million Dollars Revenue

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The House of Representatives Committee on Public Accounts has commenced investigation into the multi-million dollars debt owed the federal government by terminal operators and failure by the Nigeria Ports Authority (NPA) to remit that to the national treasury.

The probe is sequel to 12 audit queries from the office of the Auditor General for the Federation (AuGF) on the financial statement of the NPA for the 2019 financial year.

The Committee Chairman, Hon.

Wole Oke, asked the management of NPA to explain why such huge amount of money owed the federal government has not been recovered and paid into the federal treasury.

But the NPA has only responded to one of the queries on the indebtedness of terminal operators to the government to the tune of $852.

094 million and N1.897 billion.

NPA said the sum of N269.410 million of the N1.8 billion has been recovered, while the balance of N1.6 billion invoices processed on the encumbered areas remain unpaid.

The management also said that the sum of $504,663,452.37 is volume change on fix lease fee payment by APMT arising from clauses in the concession agreement between NPA and APMT out of the total sum of $852,093,730.77.

“Bills raised on encumbered areas which remained unpaid is $19,169,459.00. The following has been paid-GMT-$54,707,700.08, unpaid penalties- $11,922,642.68 and unpaid VAT-$28,693,707.07. $92,533,518.72 has been recovered leaving unpaid lease and Throughout fee in the sum of $139,970,637.71 (made up of $113,982,486.82 and $5,988,150.89) respectively,” the agency said

Not satisfied with the explanation on the issue, the lawmakers directed the NPA management to come and reconcile their position with that of the Auditor General for the Federation and provide evidence of remitting the recovered N269.51 million and $92.534 million to the treasury.

The NPA is also to furnish the House with contract agreement/Service Level Agreement, the list of all terminal operators, as well as a comprehensive schedule of lease fee that makes up the total amount being owed the government by the operators.

The committee is to invite the defaulting terminal operators to explain and justify their reason for not paying the fixed lease fee, while the NPA is also to provide details of community-related issues that hindered concessionaires from accessing the encumbered areas.

One of the terminal operators, APMT, said to be owning the government a whopping $504 million, is also to appear before the committee, while the NPA is expected to disclose efforts being made to recover the money and list of consultants engaged to assist in the debt recovery.

On the outstanding estate rent, shipping due and service boat of N32,266,183,590.8 and $67,425,429.88, they asked the NPA to provide a comprehensive lists/details/schedule of debtors who are owing legacy debts to the tune of N7,293,403,552.55, stating the outstanding debt against each of the defaulters.

The committee also directed the NPA to avail it with a comprehensive list /details/schedule of debtors who are owing N17,687,440,469.16 being shipping and service boat due.

The recovered amount and the outstanding debt must be stated against the name of each debtor.

The committee further demanded the current status of the underlisted legacy debts, evidence of remittances of part of the debts to government’s coffers if any is required.

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Business News

My Purported Removal as SALS President in Quest of Shippers’ N3tr funds – Ogamba

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From Anthony Nwachukwu, Lagos

President of the Shippers’ Association of Lagos State (SALS), Leo Ogamba, has dared the association’s Board of Trustees (BoT) to publish his offences or any act warranting his alleged removal from office other than his push for due process.

Ogamba disclosed that the BoT, whose constitution since 2008 has been invalid, is even being misguided on the expected N3 trillion Cargo Defence Fund, which invariably is influencing their illegal actions.

Addressing the media Tuesday in Lagos over the BoT’s general meeting of June 11, 2024 at which he was purportedly removed, Ogamba said he is not an “embattled president” by any stretch, having not violated or been charged with any violation of the constitution whatsoever.

 “This BoT constituted themselves in 2008. Nobody knew that they were in existence. The record of the status report of the association was invalid, but immediately they heard that I signed the first N13 billion, being the judgement sum between APM Terminals Ltd, Nigerian Shippers’ Council and Registered Trustees of Shippers Association of Lagos State, they woke up from their slumber,” he said.

 “Their understanding has been negatively influenced. They have no idea where that judgment sum would be paid in, thinking that the money, which is about N3 trillion, belongs to them on the ground that they are entitled to 60-70 per cent, with about 15 shipping companies involved.

 “Cargo Defence Fund is limited by guarantee, meaning that even if you make N10 trillion profit, you cannot share it, and accessing the fund is by subscription. I am sure that none of these people paid that money. It is the money that shipping companies and terminal operators collected but ought not to have collected.

 “In this circumstance, for you to have locus, you have to show evidence that you paid that money as a shipper. When the publication was out asking shippers to submit their bill of laden, only two submitted.

 “The Nigerian Shippers’ Council had to go the extra mile to meet these shippers for these bills of laden, on the basis of which the money was determined. The Shippers Association of Lagos State represents the whole shippers in the country by virtue of that judgment.”

Insisting that he remains president, Ogamba said the BoT, which is only advisory, does not have the power to convene a general meeting of the association, nor does it have the required membership to sit, being only three, while the constitution requires seven out of the 10-member body as quorum for any meeting.

He stated that the said general meeting was not properly constituted or was at best illegal on the ground that he “was not in the meeting. Till today, I have not received any letter to the purported removal either through e-mail or whatsapp.”

Meanwhile, more recently, a mediation agreement with the NSC at the instance of the BoT was that there should be “no meeting of SALS at any level pending the outcome of the reconciliation,” he disclosed.

In breach of this, however, he said the BoT has met “about three times,” including for his purported removal on June 11th, 2024, two days ahead of the mediation meeting called by the NSC as agreed, and which the BoT and their supporters failed to attend.

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Business News

Onitsha River Port Begins Commercial Operations 

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By Tony Obiechina, Abuja 

One year after taking over the management of Onitsha River Port, Universal Elysium Consortium Limited, the concessionaires of Onitsha River Port reached an important milestone when it formally received its first barge at the Port on the 16th of August 2023.

 

According to the Managing Director, Dr.

George Nwangwu, the barge was fully handled by the crew of Onitsha River Port.
 

The barge that arrived Onitsha Port is a consignment of tiles from Ajaokuta to Onitsha.

 It is expected that this is going to be a weekly occurrence going forward as the consignees of the goods would now move 600 tons of tiles to Onitsha every week and take 600 tons of clay back to Ajaokuta.

The General Manager of Onitsha River Port, Wannes De Wit, also expressed his happiness on reaching this very important milestone. According to him, the activity helped take more than 70 trucks off the busy roads and this was only possible and achievable because of the higher water level in the river Niger during the rainy season. 

According to him, this only happens for 6 months in a year due to the low water levels in the Rive Niger during the dry season. He however pleaded with the Federal Government to dredge the river channel so that goods can be moved through the river channel all year round as this would have immense benefits to the country. 

The Managing Director paid tribute to the operations team at the Port which consists of the supervisors, dockers, crane operators, and forklift operators who really put in immense effort to ensure the operation was seamless and successful. 

According to the MD, the goal of the company is to continue to strive to make Onitsha Port great despite all the challenges.

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Maritime

Foundation Tasks Senate Committee on Autonomy of Coastal Communities

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The Ocean Ambassadors Foundation (OAF) has urged Sen. Wasiu Sanni, the new Chairman, Senate Committee on Marine Transport, to push for autonomy of coastal maritime state.

The President, OAF, Mrs Violet Williams, made the call in an interview yesterday in Lagos.

Williams, a blue economy professional and former member of the Board of the Nigeria Shippers’ Council, also congratulated Sanni on his emergence as the Chairman, Senate Committee on Marine Transport.

According to her, stakeholders are expecting a positive turnaround in the maritime industry, especially in line with the blue economy.

“This is because we are looking at 2030 actualisation of the establishment of blue economy in all maritime nation.

“Ghana is doing well on it, even Togo and so we expect that he as the new man with a background in agric, he should be able to push for the blue economy and autonomy of coastal maritime state.

“Looking at the 13 per cent oil derivation for the oil producing state, they are getting it and enjoying it.

“So, let the maritime state, the coastal communities enjoy the benefits of the coastal economy which is the blue economy,” she said.

She noted that it was a delight to have Sanni as the maritime game changer for all the coastal communities in Nigeria to be strategically positioned.

The 62-year old Sanni is the senator representing Lagos Central.

He previously served as the Deputy speaker of the Lagos State House of Assembly from 2015 to 2023.

OAF is an non-profit organisation geared toward enhancing awareness about maritime opportunities whilst building the next crop of elite Nigerian practitioners in the maritime sector via strategic mentorship programmes for secondary school students.

It works in partnership with government agencies and private organisations in the nation’s shipping sector while connecting school authorities, teachers and pupils in a holistic approach to stimulate interest in shipping among young ones. (NAN)

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