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As FG says pending court cases stalling project take off
By Christiana Ekpa
The House of Representatives Joint Committees probing the delay in the take off of Nigeria Customs Services E-Customs modernization project, on Monday disclosed that, Nigeria is losing $8.810bn annually due to non-implementation of the project, even as it revealed that the project was projected to generate about $176.2 billion within the 20 years concession period.
The project when completed was expected to automate the activities of the Service, streamline the finances and stop revenue leakages in the system.
This was just as the Minister of Finance, Mrs. Zainab Ahmed in her presentation to the Committees jointly chaired by Hon. Leke Abejide (Chairman, House Committee on Customs and Excise); Hon. Victor Nwokolo (Chairman, Committee on Banking and Currency) and Hon. James Faleke (Chairman, House Committee on Finance), told the Members that there were pending court cases which had delayed the project.
The Minister represented at the hearing by the Director, Home Finance, Stephen Okon said that the suits were three and as such, the matter cannot continue.
She said “there is no doubt, the pending cases are impeding the commencement of the E-Customs Project. In order to pave way for the take-off of the project, the Ministry is liaising with the Office of the Honourable Attorney Genera! of the Federation to ensure that the arbitration is speedily concluded. This we believe could settle all the pending matters and allow the E-Customs project to commence without further delay”,
Delivering his speech at the hearing titled “Need to Resolve the Debacle Between Central Bank of Nigeria (CBN)/Technical Committee on Comprehensive Import Supervision Scheme (CISS) and Adani Mega System Ltd Hindering the Take Off of Nigeria Customs Services E-Customs Modernization Project”, the Comptroller General of Customs, Col. Hameed Ali (retd) represented by the Assistant Comptroller General (ICT), Galadima Saidu said that the matter had been previously heard and dispensed with by the House, wondering why it was reopening it.
He said that the contractor, Adani Mega System Limited who was supposed to execute the project had been relieved of it.
He said: “Adani Mega System Limited to “Build, Operate and Own” scanning services infrastructure at designated ports across Nigeria, without consultation or knowledge of the Federal Ministry of Finance or Nigeria Customs Service.
“This information was leaked to the Service by a whistle blower who was introduced to the NCS by the House Committee on Customs, backed with relevant documents.
“Consequently, the Chairman of the C138 Committee was invited by the Comptroller General of Customs and after series of discussions, he was made to realize that the Committee being a non-juridical person lack the capacity to enter into any legal agreement.
“Furthermore, investigations carried out by the Service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorized third party Adani International Limited (UK) registered 4 months after the agreement was signed and the Company has since been dissolved ( Copy of the search result is hereby enclosed as Annex A).
“Therefore, the assertion by Adani Mega System Ltd that its international partner has a proven track record, capacity, expertise and competence to execute and operate within the project field covered by the agreement was false and misleading.
“It was upon the realization of this misrepresentation that the Committee on CISS canceled the agreement entered into with Messrs Adani Mega Systems Limited, via a letter Ref:TED/DIR/GAM/GEN/Ol/OZS dated 18th September, 2017 (Capy attached as Annex ‘B).
“It is worthy of note also that the House of Representatives Joint Committee On Finance, Customs and Public Petition passed a resolution suspending the Concession Agreement on e-Customs pending the outcome of an Investigative Hearing.
“The hearing was conducted and the Committee Vide a second letter NAS S/9/CHR/2019/JOINT/002 dated 20th December, 2019 (Copy of the letter is hereby attached as Annex C) stated that after due consideration of the process towards the award has found no breach in the award of the contract for the e-Customs Project.
“They therefore advised that the Contract Agreement should continue pending the ratification and adoption by the full house when the report is laid before it.
“The then Joint Committee had diligently investigated the award of the e-Customs Modernization Project to a Consortium made up of two Companies who have complied with one of the requirements in the Letter of Award by jointly registering a Special purpose Vehicle known as E-Customs HC Project Limited and also reviewed the responses received from the Consortium, the Public and relevant Stakeholders on fundamental issues bordering the capacity of the Consortium to deliver and their compliance to the Procurement Act 2007.
“The findings of the then Joint Committee also showed that there was strict compliance to the Procurement Act 2007 and that the Consortium that was selected exhibited high technical expertise and financial capability to execute the project. After due consideration of the process of award, the Joint Committee found no breach since none of the extant laws were subverted. Hence, the Committee recommended that the agreement be finalized and the Consortium awarded the Contract (Copy of the House Committee’s report is attached as Annex D). It is therefore curious that the same House is raising the issue over again.”
But the use of the word “curious” angered the lawmakers, prompting a member of the Committee, Hon. Ndukwe Uko Nkole to ask the CGC to withdraw the remark and tender apology.
He said: “Hon. Colleagues, as a rider to what my colleague has submitted, chairman, banking and Currency, the CG of customs his address to this parliament, especially in paragraph 4, is very derogatory to the parliament and it is very wrong for a public officer, an appointed officer to address elected representatives, that he’s curious. So I demand that the CG of customs must apologize to this parliament for using such a derogatory statement on the parliament.”
Responding, the lead chairman of the joint committee and substantive chairman on Customs and Excise, Hon. Leke Abejide asked Nkole to read the paragraph again.
Nkole did and submitted that “The House that has a supervisory role by heirachy , the parliament towers above. Then why would u respond in such a manner using such a word to your supervisors. Mr Chairman, I take exception to this and as a responsible parliament I expect that the CG of customs should withdraw and apologize to the parliament over the statement. It’s wrong in its entirety.”
In his response, Abejide said “Your observation is noted. I think the co-chair spoke on it earlier but let us hear from the CG himself”.
Given the opportunity to speak, Saidu however veered off the issue at stake, dwelt on the importance of the project.
But another member of the Committee, Hon. Bamidele Salem interjected, insisting that the CGC must address the issue raised by Nkole.
Salem “Mr. Chairman, point of order, please, “I think we need to get this very clear. The remark and the demand of Rt. Hon. Uko Nkole is not about whether…”
But Salem said “Exercise me, please. We know about the importance of this project and programme. This remark that you made, you said it is curious that the house is raising this matter. What’s curious about it? That’s the issue. It is not about whether this is a very needful project. We, ourselves know and you can see that even from the speech of the Chairman Customs earlier on, unfortunately you came very late which should have been the first point of your comment here”.
But Salem continued “Excuse me, please. The House raise a matter over which we have the Constitutional power to raise. It is disgraceful to the House and that’s the point he’s making. And that is the point you need to address. Mr. Chairman, that’s my submission. He’s dodging the main point raise my Hon. Uko Nkole.”
Intervening in the matter, a co-chair of the joint committee and substantive House chairman, Committee on Banking and Currency, Hon. Victor Nwokolo said that the hearing will be postponed.
