Reps ask NPA to reverse termination of agreement with Intels

Joanna Estrada
October 19, 2017

The House of Representatives has started investigations into the termination of the contract between Integrated Logistics Services (Intels) and the Nigerian Ports Authority (NPA).

The House, while adopting a motion by Rep Diri Douye (PDP, Bayelsa), resolved to constitute an ad hoc panel to probe the circumstances that led to NPA's decision to terminate an existing contract between it and Intels.

NPA had relied on legal advice from the Attorney General of the Federation (AGF) and Minister of Justice, Mallam Abubakar Malami, to terminate the contract.

The MEMPON President said that government might be right in saying that the contract should not have been entered into from the onset, but by that time the government found it necessary because of the need to generate revenue.He therefore urged Intels Management to always see themselves as being within the system and respect authorities and government, pointing out that Usman's grouse might be that several attempts to get the company to comply with government directives were not heeded to.

The House is anxious about the implication of terminating the contract, which is that 7,000 Nigerians who are employees of INTELS will be rendered jobless.

Similarly, other lawmakers such as Hassan Saleh (APC, Benue), Simon Arabo (PDP, Kaduna) supported the motion.

Yakubu Dogara, speaker of the House of Representatives, called for a voice vote, which ended up supporting the motion.

"Intels has carried out the services for years since the agreement was signed between the NPA and Intels in 2010".

He stated; "most of the places developed and workable today at the Oil and Gas Free Zones were developed by Intels with the cooperation of Nigerian Ports Authority".

The Maritime Workers' Union of Nigeria said that its utmost concern was job security and welfare of its members at Intels.

She also said that the workers who were likely to lose their jobs as a result of the termination of the contract would be absorbed by the new company that would emerge.

But the Presidency, in a series of tweets, said President Muhammadu Buhari has redirected all government agencies to ensure compliance with his Presidential Order on the TSA policy.

The company said it borrowed $1.4 billion (N428.4 billion) from banks to execute the agreement with the understanding that the debt would be offset from money realised from the pilotage services paid directly to the banks.

He said "We could pay into TSA but not the manner NPA wanted, we want to keep our commission and pay what is due to NPA". "Deliberate stumbling blocks were placed on the path of resolving the issues and this is indicative of a sinister motive", he said.

Other reports by Click Lancashire

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