Intels contract expired, Not Terminated - Bala-Usman Explains

Aniola Seun

The embattled Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala-Usman yesterday said that the pilotage contract between the authority and Integrated Logistics Services Limited (INTELS) expired and was not terminated.

In a press statement made available to newsmen against the backdrop of report that she frustrated NPA contractors that led to huge loss of government revenue, she said Intels was disqualified from fresh bidding because it violated one of the criteria advertised for the tender process.

She further stated that neither her nor the NPA disobeyed any court order in the matters involving INTELS or any other company.

According to her, after Intels complied with the agency’s directive of remiting to the FG’s single treasury account, it withdrew the termination order against the company.

Her words, ” there was no court order existing at the time of the expiration of the boat pilotage contract between the NPA and INTELS by on August 8, 2020. I should also state that this contract was NOT TERMINATED contrary to claims.

“For the records, INTELS was engaged as Managing Agents of the Authority for oil industry related activities in the compulsory pilotage district within the Exclusive Economic Zone of Nigeria.

“This contract commenced in June 2007 with a review of an extension of 10 years in 2011 to culminate in August 2020. The Authority had in 2017, served INTELS with a notice of termination for its refusal to comply with the Treasury Single Account policy of the Federal Government.”

“Following the receipt of the termination notice, the company complied with the Policy. A supplemental agreement was signed to recognise the compliance to TSA and the notice of termination was accordingly withdrawn. In compliance with the Public Procurement Act, the Authority in Dec 2019 initiated a public tender process in anticipation of the expiration of the contract in August 2020. This was for the appointment a contractor to provide the Authority with that service.

She stated in the statement that Intels was disqualified because it violated one of the criteria advertised for the tender process.

“INTELS, alongside other companies submitted bids to qualify for the tender in line with the criteria spelled out in the public advert. INTELS violated one of the criteria advertised for the tender process and was accordingly disqualified.

“The tender process proceeded accordingly and the companies that scored the highest were prequalified.

“The outcome of the transparent tender process was forwarded to the Federal Ministry of Transportation for onward transmission to the Federal Executive Council (FEC) for its consideration.”

“Upon disqualification from the tender process, INTELS initiated a court action to prevent the Authority from proceeding with the tender process citing a debt owed one of one their sister companies, Deep Offshore Nigerian Ltd for the development of Onne 4B.

“This is an amortization project which payment should be derived from the revenue raised from this service. There was no provision in the contract to the effect that INTELS must be the company carrying out the boat pilotage contract, but they have continued to hold the country to ransom for through this court case.”

“It should also be noted that despite court case, the Economic and Financial Crimes Commission (EFCC) is currently working on recovering all Federal Government funds that the INTELS have withheld over the years. All the NPA tried to do was to see that INTELS and indeed no other business entity contravenes the laws of the country or the provisions of their contract.”