*Court cases delaying take-off of project, says FG
*Lawmakers say Nigeria to generate $8bn annually from implementation
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A mild drama played out yesterday at the public hearing of the Joint Committees on Customs and Excise, Finance and Banking and Currency of the House of Representatives investigating the delay in the take-off of the Nigeria Customs Services (NCS) e-Customs modernisation project.
The hearing was 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 Modernisation Project.”
The Comptroller General (CG) of Customs, Col. Hameed Ali (retd), while addressing lawmakers at the hearing said the matter had been previously heard and dispensed with by the House.
Represented by the Assistant Comptroller General (ICT), Galadima Saidu, the CG wondered why the lawmakers were reopening the probe. He said the contractor, Adani Mega System Limited, who was supposed to execute the contract, had been relieved of it.
Recalling the previous probe, Ali 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.
“Investigations carried out by the service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorised third party, Adani International Limited (UK), registered four months after the agreement was signed and the company has since been dissolved (Copy of the search result is hereby enclosed as Annex A).
“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.”
Speaking further, Ali said, “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.
“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 was subverted. Hence, the committee recommended that the agreement be finalised 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.”
His statement angered the lawmakers, prompting a member of the committee, Hon. Uko Nkole, to ask the CGC to withdraw his remarks and tender an apology. Ukole said the use of the word “curious” by Ali was derogatory and unacceptable.
Corroborating, Ukole’s observation, the joint committee xhairman, Hon. Leke Abejide, said, “Your observation is noted. I think the co-chair spoke on it earlier but let us hear from the CG himself.”
Responding, the CG veered off and started speaking about the importance of the project.
However, another lawmaker, Hon. Bamidele Salem, interjected, insisting that the CGC must apologise.
Salem said, “Excuse 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 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.”
However, in his response, the CG said, “But I apologised.”
At this point, co-chairman of the joint committee, Hon. Victor Nwokolo, intervened, calling for the postponement of the hearing.
Nwokolo said, “Off your Mic, Hon colleagues, if I had him well, he apologised. We rest for today. It boils down to the same thing I have said that from the submissions, the matter is still in court. That’s one. Two, Adani, you said you have something to say. What we are saying is that as at this moment, you are not ready. Whatever that caused it whether human, you are not ready. Both agencies have given you examples. They came with hard and soft copies and if you have given us soft copy by Friday, we would have gone through them.
“Now, you are bringing us soft copy after we are sitting, it is difficult for us to peruse the soft copy. Now, you go and tidy up your documents. That’s what I suggest. Go and put your papers in order. The matter is in court. It’s been said here repeatedly. You have three suits. In fact, we are even urging you to go and do a consolidation of suits because they are all related.”
Meanwhile, in her presentation, Minister of Finance, Budget and National Planning, Zainab Ahmed, told the lawmakers that pending court cases were delaying the commencement of the e-Customs mordenisation project.
The minister, who was represented by Director, Home Finance, Stephen Okon, said the federal government found out the company awarded the contract in 2017 lacked the technical capacity to execute the project while also breaching some provisions of the contract.
According to her, Messr Adani Nigeria Limited, who was awarded the contract by the Technical Committee on Comprehensive Import Supervision Scheme, leased the contract to another company Adani International Limited based in the UK and registered four months after the contract was signed.
She said after the cancellation of the contract, Adani Nigeria Limited filed three different suits against the federal government, alleging breach of contract, adding that the lawsuits which were yet to be decided by the Court were holding back commencement of the project.
Earlier, in his remarks, Chairman of the Customs Committee, Hon. Leke Abejide, noted that there had been back and forth on the issue of e-Customs modernisation project whose objectives was to completely automate every aspect of Customs administration.
He said that about $8.810 billion would be generated yearly from the implementation of the project, hence the lawmakers wanted to ensure the obstacles were done away with to allow the project commence in earnest so as to reduce to the barest minimum the issue of borrowing money to fund national budget yearly.
Abejide said, “The cost of concession implementation over a 20-year period is $3.1 billion and the project is projected to generate about $176.2 billion within the 20-year concession period. We equally understood the SPV is to recover their investment based on negotiated and staggered recovery strong ratio from the Comprehensive Import Supervision Scheme (CISS) and Nigerian Export Supervision Scheme (NESS).
“If you juxtapose the benefits that will accrue to the nation for the good of Nigerians with not doing the e-Customs at all, if it is crystal clear we are sitting on gold, but mistaking it to be wood.”
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