Tag Archives: NPA
How NPA officials by-passed procurement laws to corner N717 billion contracts.
Officials at the Nigerian Ports Authority (NPA) are brazenly and fraudulently bypassing Nigeria’s public procurement law to award multi-billion naira contracts to handpicked contractors, a month-long investigation by PREMIUM TIMES has shown.
At least N717 billion in juicy contracts have so far been illegally awarded to one contractor alone. Under Nigerian Public Procurement Law (PPA), contracts of such magnitude should go through open competitive bidding.
The PPA Act, enacted in 2007, prescribes principles by which public procurement entities within the various Federal Government Ministries, Departments and Agencies should conduct their affairs.
The principles, which include honesty, integrity, transparency, accountability, fair competition, economy and efficiency and value for money, apply to all transactions, large or small, and describe the behaviour expected of every public officer in the conduct of public procurement.
The spirit of the Act is to offer all interested contractors, suppliers and consultants a level-playing field on which to compete and thereby, directly expand the purchaser’s options and opportunities.
It is also to serve as a key deterrent to collusion and corruption, submission of inflated or deflated tenders, followed by delayed or defective performance.
The law also frowns at procurement officials betraying and abusing public trust for personal gain.
To avoid these pitfalls, the Procurement Act stipulates that bids shall be invited only from qualified/approved contractors/suppliers competent to do the work or provide the services to the nominated standards.
It also says that contracts shall be awarded to the lowest evaluated responsive bidder, and shall meet all technical requirements and standards on the basis of competitive tendering unless overriding technical grounds exist to justify any other course of action.
Impunity unparalleled
NPA officials have however ingeniously found a way of circumventing Nigeria’s procurement regulations, carefully engineering what appears a fraudulent process of disguising contracts as Joint Venture projects between the authority and companies of their choosing.
The processes of choosing the joint venture partners are never thrown open, and so also are the procedures for awarding contracts to them.
One company that featured prominently in the so-called joint venture arrangement is Bonny Channel Company Limited.
In its own official document, Bonny Channel Company Limited (BCC) describes itself as a Public Private Partnership (PPP) arrangement between the NPA and The Channel Management Company, through a joint venture agreement signed on June 23, 2014.
The Channel Management Company, TCMC, is itself described as a technical consortium made of Dredging International, Vinci and IPEM. The share structure arrangement gives 60 per cent to NPA and 40 per cent to TCMC.
BCC says it “creates and maintain a safe navigational passage for all marine users to and in the eastern ports of Bonny Island, Onne, Okrika and Port Harcourt”.
For 10 years, beginning from 2006, BCC carried out two major contracts a year; one in Rivers Port and the other in Onne Port. In 2006, the contract sum awarded without passing through the standard procurement process was 127 million dollars.
Total contract figure was 163.2 million dollars in 2007; 195.4 million dollars in 2008; 143.4 million dollars in 2009 and 192.1 million dollars in 2010.
In 2011 the sum of contracts awarded to BCC for projects in Rivers and Onne ports respectively was 327 million dollars. Total contract sum was 300.2 million dollars in 2012; 296.3 million in 2013; 328.6 million dollars in 2014 and 286.2 million in 2015.
Curiously, the same contract of “Capital and Maintenance Dredging” is awarded to the BCC Joint Venture year after year. The company was awarded a total of $2.4 billion (or N717.3 billion) contracts in 10 years, in disregard for the nation’s procurement law.
The Procurement Process
There are nine essentials steps in public procurement in Nigeria. They include (1) efficient procurement plan driven by needs assessment; (2) adequate appropriation; (3) advertisement: (4) transparent prequalification /tender; (5) bid submission /opening; (6) bid evaluation – technical and financial; (7) tender board /FEC approval; (8) contract award /execution; (9) project implementation.
The fine details of this process are captured in sections 17 and 24 of the Public Procurement Act. The transparency steps for procuring goods, works and services must begin with the public posting of procurement notices and solicitations on a Notice Board located in a public area.
The Requests for Proposals (RFPs) must also be advertised in at least two national newspapers of general circulation – and the Federal Tender’s Journal. The same announcement must be made in the government official gazette and by placement on the procuring entities’ website.
The name of the procuring entity must be stated; also the name or nature of the contract; items to be procured; contact information for obtaining tendering documents; cost of the tendering documents; place and deadline for tender submission; Required Bid security amount and format; the place, date and time of tender opening; and the minimum qualifications bidders must meet.
Others are transparent pre-qualification of bidders; submission/receipt of tenders; evaluation of tenders; comparison of tenders; recommendation of the winning bid to Tenders Board /FEC; issuance of Certification of ‘No Objection’ to Contract Award by the Bureau of Public Procurement (BPP); debrief the bid losers on request; resolve complaints and disputes, if any; obtain and confirm the validity of any performance guarantee; announce and publicize contract awards; and execute all contract agreements.
To forestall cases of sweetheart deals and protect the integrity of the process, formulators of the Procurement Act found it pertinent to include a provision forbidding communication with bidders. It says: “At no stage shall the composition, names or any other details of any of the above committee members (the Technical and Financial Evaluation sub-committees) be divulged to the bidders. Other than when direct negotiations are required with the bidders, members of the above named committees shall not communicate directly with the bidders. All such communications shall be done through the procuring entity.
NPA has ‘superior’ ideas to the Procurement Law
The Procurement Act may have spelt out statutory procurement guidelines for all Federal Ministries, Departments and Agencies, but the NPA does not appear to think much of the law. If anything, the parastatal sees it as a clog in the wheel to be avoided as much as possible.
Justifying the joint venture, six reasons are given by BCC (that is NPA top managers and TCMC Consortium), one of which is “the need for an uninterrupted project (that may arise) from frequent bidding and due processes which are common in one-off government contracts”.
The agency gave a second reason for the joint venture saying it “provides the additional technical capacity, mainly with regards to capital and maintenance dredging, bathymetric survey, buoys maintenance and surveillance, continuous monitoring of the access channel, wreck removal, training, planning and management”.
These are supposed to be the statutory duties of the NPA but they are routinely contracted out under a joint venture.
“Given that maritime is the second largest revenue earner for the nation after oil, all NPA contracts should pass through the eye of the needle under the Procurement Act,” an NPA insider said.
“That the NPA has cleverly resisted by resorting to what is called restricted tendering method or in some cases single bid method, none of which subjects the procurement process to any form of competition. The only competition that exists is among the different companies or consortium begging to give an arm just to be NPA’s joint venture partner.”
Although the Procurement Act makes provision for direct contracting, it expects that that would only apply only in exceptional cases. For example when the contractor is needed for early delivery of essential goods in emergency operations. Or when an equipment required is proprietary and there is only one source and no alternative equipment or products with equivalent performance characteristics are available.
Direct contracting is also recommended when there are only a few known suppliers or exceptional reasons such as emergency actions related to a major natural disaster which may justify the waiving of advertising of competitive bids.
Other joint venture partners
PREMIUM TIMES gathered that BCC is not the only joint venture partner the NPA uses in circumventing the nation’s procurement laws.
Investigations by this newspaper showed that the agency arbitrarily awards N750million worth of contracts annually to SeaView Properties Ltd, another so-called joint venture, to provide various categories of environmental services.
The company in turn awards these contracts in batches of N2million to sub-contractors. The contract award by the sub-contractor is done through an internal advert process that is not subjected to the public procurement law.
“The threshold is maintained at N2million to retain the award threshold to domicile with the MD of the company and below what is required for public tender,” a top official of the authority told PREMIUM TIMES.
“The small lots of N2million are inefficient and cumbersome, the scope does not seek to maximize value for money but just to ensure that the contract award is not subjected to public tender.”
The parastatal also set up joint venture structures that gave birth to such companies as Lagos Channel Management (LCM) and Calabar Channel Management Limited (CCM).
PREMIUM TIMES found that the same CCM has a working relationship with another company called Nigeria West Minister Dredging Marine Limited. It is these handpicked companies, some of them amorphous, that NPA parades to give a semblance of compliance with the Procurement Act under its restrictive tendering. Other times it is just single bid process involving only one company.
The Lagos Channel Management Company manages the Lagos Pilotage District. It was incorporated in August, 2005 by NPA with an equity shareholding of 60 per cent and 40 per cent equity to the Joint Venture partner, Depasa Marine International.
Another NPA’s joint venture is called Continental Shipyard Limited. This is described by NPA as a joint venture partnership between the Nigerian Ports Authority and Dockyard Engineering Service Limited of Geneva Switzerland.
“The primary purpose for the establishment of the Joint Ventures is to turn around the Dockyard as a lucrative commercial enterprise through operating, up-grading and modernizing the facility to provide essential support for construction, repair manufacturing and maintenance of vessels, crafts, rigs etc.”, the NPA stated on its website.
The Calabar Channel Management Company Limited is stated as a newly established Joint Venture arrangement between Niger Global Engineering and Technical Company Limited with the Nigerian Ports Authority for what is described as Management Contract on Dredging of Calabar Channel. The NPA holds 60 percent equity while the consortium led by Messrs Global Engineering and Technical Company Limited has 40 per cent shareholdings.
Yet another of NPA’s joint venture, although incongruous with the organization’s core competence, is Agura Hotels Limited in Abuja which is listed as the agency’s joint venture in the hospitality industry.
There are no available information on how much contracts the NPA has so far awarded to the Calabar Channel Management Company Limited under the joint venture arrangement. None too for Continental Shipyard Limited and the Lagos Channel Management Company.
The N717 billion naira is the value of contracts awarded to just one joint venture partner, Bonny Channel Company (BCC) over ten years.
Explaining its joint venture arrangement with the NPA, BCC (NPA and TCMC) says the works it undertook were “carried out at a cost effective way based on the fact that competitive rates charged to NPA are more or less within the same range with that for third-party jobs carried out by BCC …”
Industry watchers queries NPA’s claim to competitive rates saying it is the statutory duty of the Bureau of Public Procurement (BPP), not that of NPA or BCC to determine what is a good price for a contract.
In fact the BPP itself, alarmed by the manipulations and total lack of transparency at NPA has stepped forward to say that the NPA joint venture agreements “contained terms that were skewed and disadvantageous to the financial interest of the Nigerian Ports Authority”.
NPA Reacts
In August 2016, the new Managing Director of NPA, Hadiza Bala Usman, was quoted by the News Agency of Nigeria (NAN) as saying there was need to look at some of the funds expended on capital and maintenance dredging.
She said the funds used for such dredging projects in the past “should not be that high’’.
“It’s good time for us to compare capital dredging and maintenance dredging,’’ NAN quoted the managing director as saying.
When contacted Tuesday, Ms. Bala Usman said she had been taking stock of affairs at the NPA since she assumed duties in July, and that one of the areas her team was scrutinising was the procurement system in the agency.
“We will surely overhaul the procurement system here to ensure it complies with the PPA and Bureau of Public Procurement’s regulations,” she said.
“For instance, at the second board meeting of Seaview Properties last week, I directed that henceforth contracts will be classified into lots that are efficient and the authority will advertise them in line with BPP and if the subsidiary or joint venture wants to bid, they can, alongside other companies.
“We will commence the process of the new lot sizes and scope. Then we will have a public tender process of awarding the contracts. We believe by 1st quarter 2017 the process will be complete and new contractors that have gone through a public tender process will emerge and take over.
“We are hoping to do that with other joint ventures and subsidiaries going forward.”
W’Bank budgets N12.2bn to clear Apapa gridlock
The World Bank is to support Nigeria’s maritime sector with N12.2bn ($40m) to help clear the traffic congestion that characterises most roads around the Nigerian Ports Authority in Apapa, Lagos, the Nigerian Shippers Council has said.
According to the NSC, the National Freight Information and Transport Hub, an arm of the World Bank, is working with the NPA on how the funds will be used to clear the trucks and tankers that cause heavy gridlock at Apapa, Orile, Tin Can Island and other areas around the Lagos port complex.
The Executive Secretary, NSC, Mr. Hassan Bello, told journalists in Abuja during a press briefing that the move was aimed at making the NPA more efficient, adding that it would also ensure that oil pipelines were used to transport petroleum products instead of tankers.
He said, “No matter how efficient the terminal is, if you don’t have the road to evacuate cargo, how will you move your goods out of the ports? So, there must be an intervention and in that regard, the NSC has introduced the NAFITH to the NPA. Now, the NAFITH, an international finance corporation and an arm of the World Bank, is bringing $40m to put an end to the traffic situation in Apapa.
“The fund is meant to improve logistics around the Apapa, Tin Can and Orile areas for every time there are over 5,000 trucks on that axis. But what are they doing there? What we need is about 1,500 trucks in that Apapa vicinity logistically, but you find about 5,000. So, what are the other 3,500 trucks doing? They are doing nothing!
“So the idea is to have an electronic passage where a truck is in Apapa only when it is needed to pick or drop cargo. The tankers too don’t need to be there for the pipelines will do the transportation of products. The moment we have the pipelines pumping to Mosimi and other flow stations, then we don’t need the tankers in Apapa. So, all these things are what the World Bank is coming to do in order to solve, once and for all, the gridlock in Apapa.”
Bello noted that maritime sector was a formidable source for the diversification of the Nigerian economy.
NPA, BudgIT sign deal on budget implementation.
The Nigerian Ports Authority has signed a Memorandum of Understanding with BudgIT Information Technology Network to open up its budget for the public.
The General Manager, Public Affairs, Chief Michael Ajayi, in a statement on Monday in Lagos, said the MoU would promote transparency and accountability.
The Managing Director of NPA, Ms. Hadiza Usman, said the partnership became necessary for the development of an open budget system platform and implementation of a public data dissemination programme.
She said that this would help the organisation in blocking revenue leakages.
Usman said the MoU would provide Nigerians with all the necessary information during implementation of the NPA’s budget.
She said BudgIT had achieved feats in socio-technological advocacy toward opening up of public budgets for citizens’ comprehension.
Usman said with the MoU, NPA would be able to deliver its mandate and create more wealth for Nigerians.
She said that the MoU would also assist NPA as a critical organ in the economic artery of the nation to promote effective and efficient management of all its terminals across the country.
The managing director said the partnership, apart from promoting transparency in public expenditure, would also instil a framework for transparent budget provisions for the authority.
She said the MoU would allow stakeholders to add their inputs, “encourage participatory governance by way of feedback and creates an enabling environment to encourage foreign investment’’.
She added, “The collaboration will ensure that key research, industry policies and innovations are effectively communicated.
“It will also ensure that critical data are generated and made accessible for policy makers, private sector actors, stakeholders and the general public.”
The Lead Partner of BudgIT, Mr. Oluseun Onigbinde, said NPA was the first revenue generating government agency to make its budget public.
He said the Management of the NPA would not regret keying into the programme.
Onigbinde said the collaboration, apart from promoting probity, transparency and accountability, would also restore government and public confidence in the Management of NPA.
“Your jobs are intact”, NPA MD assures staff.
The management of the Nigerian Ports Authority (NPA) is not planning to retrench staff, Hadiza Usman, managing director of the organisation, has said.
Speaking during a tour of Warri Port in Delta state, Usman revealed that the management even has the intention to recruit more staff.
She disclosed that NPA’s general manager, human resources, had been tasked to bring up ideas in this regard.
Usman also said the management would take remedial measures so as not to allow ships to be grounded at the Escravos breakwaters due to high siltation.
She suggested that emergency remedial measures should be put in place to ensure that no vessel runs aground.
Earlier, Simeon Okeke, manager of Warri Port, highlighted the dangers posed by the breakwaters and the channels leading to the port due to high siltation.
He said the absence of vital buoys made navigation difficult, resulting to situations when vessels go aground.
The port manager also lamented that the right vessels were not coming into Warri Port because of the shallow nature of the berths.
Okeke suggested dredging and mooring of the channels of Warri Port as well as the removal of wrecks.
He said more manpower should be recruited into the various departments.
The port manager also talked about the problem of encroachment of port land and litigation, recommending a review of port tariffs and restructuring.
“The port needs intensive promotion to give the correct image as well as the complete rehabilitation of the facilities in the port,” he said.
Emmmanuel Adesoye, chairman of the board of NPA, advised the organisation to carry out corporate social responsibility (CSR).
Adesoye also urged the management to do physical development of the communities around them.
NPA denies plan to sack workers, announces recruitment.
Managing Director of the Nigerian Ports Authority (NPA), Ms Hadiza Usman, has denied alleged plan by management to sack workers.
She spoke on Thursday during a tour of Warri Port.
Usman said rather than the NPA retrenching staff, management was set to recruit more staff and had tasked the General Manager, Human Resources, to work on succession plan of the organisation.
Usman said the management has introduced performance-based appraisal whereby every personnel would be appraised based on his or her performance.
The managing director said that the management would take remedial measures so as not to allow ships to be grounded at the Escravos breakwaters due to high siltation.
Earlier, Port Manager of Warri Port, Mr Simeon Okeke, had highlighted the dangers posed by the breakwaters and the channels leading to the port due to high siltation.
The port manager also lamented that the right vessels were not coming into Warri Port because of the shallow nature of the berths.
Okeke suggested dredging and mooring of the channels of Warri Port as well as the removal of wrecks.
He said that more manpower should be recruited into the various departments.
Meanwhile, Senate has threatened to revoke the port concession agreement with any terminal operator that fails to keep its own side of the agreement.
FG introduces SOP to fight corruption at Lagos ports
The Federal Government has introduced the Standard Operating Procedures, SOP, with the aim of combating corruption in Lagos ports.
This was just as the Nigerian Ports Authority, NPA, has commenced moves to sanction terminal operators who violate the concession agreement entered into with the government regarding developmental plans.
To fight corruption at the ports, the Federal Ministry of Transportation, yesterday, introduced the Standard Operating Procedures, SOP and the Port Services Support Portal, PSSP, in the Lagos Ports Complex.
The SOP was designed by the Federal Government to stop illicit activities, corruption, increase transparency, accountability and to make Nigeria Ports users friendly.
Speaking at the official launch in Lagos, the Minister of Transportation, Mr Rotimi Amaechi said that the Maritime Anti-Corruption Network and the UNDP had in 2013 noted that the pre-requisites for port effectiveness and efficiency in Nigeria are in short supply and recommended intervention by government.
Amaechi, who was represented by the Managing Director of the Nigerian Ports Authority, NPA, Ms Hajia Usman, said “As you are aware, the corruption risk assessment project is an anti corruption project focusing on strategies to reduce corruption in the Nigeria Port sector.”
Meanwhile, the NPA has threatened erring terminal operators who violate the concession agreement entered into with the government regarding developmental plans.
Speaking during a recent tour of Lagos ports, MD of the NPA Mrs Usman said that most of the operators have defaulted in developing the port facilities and in its revenue generation drive for the government.
Usman also said the Ports Authority will soon embark on an aggressive collection of debts, which will be paid in foreign currencies.
She said, “We have had discussions with the terminal operators around critical areas such as port development that they have not complied to. I have raised that with them.
NPA Moves To Review Tariffs At Ports
The Nigerian Ports Authority (NPA) has signified its readiness to review its tariff regime in order to draw traffic to the Nigeria ports.
This was disclosed over the weekend by the Managing Director, NPA, Ms Hadiza Bala Usman, at a stakeholders meeting in Lagos. She said the tariff regime would be reviewed both upward and downward to make the ports competitive and attractive.
‘‘Our tariff regime will be very competitive looking at the role of Nigeria within the West African sub-region and in the continent. The tariffs will ensure that we are competitive and will also drive traffic into our ports,’’ she said.
She also disclosed that the NPA would ensure operational efficiency of the nation’s ports. ‘‘To ensure that our terminals are competitive, we are taking into considerations the fact that we cannot afford to have traffic moving away, so any decision taken in tariff regime will put into considerations the competitiveness of Nigerian Ports in West Africa coast and in the continent of Africa.
The managing director also disclosed that it would be impossible for the agency to accept payment in naira from terminal operators and shipping companies. According to her, the NPA has most of its obligations in foreign currencies and unless it was able to negotiate its obligations in naira it would be difficult to accept payments in local currency.
She said: ‘‘As I mentioned to our stakeholders, we have obligations in United States dollars, so it is very difficult to accept payments in naira. We know the concerns of forex in the country, but we shall continue discussions and ensure that all indebtedness in dollars to the NPA are paid promptly.’’
Usman also disclosed that there was a need for the management to decongest access to the ports through the road. My assessment of the port is that we need to improve on a number of things, we need to prioritize the decongestion of access road to our port complexes.
There are lots of things we need to improve, we need to improve the ease of doing business within the port and I have asked the terminal operators to automate some of their services to reduce human traffic.
Also speaking at the event on acceptance of payments in foreign currencies, the Executive Director, Finance and Account, NPA, Mohammed Bello Koko admitted the difficulties in sourcing foreign exchange but charged the terminal operators to pay up their debts.
‘‘We understand the difficulties in accessing forex, but we expect our customers to think outside the box on how to pay us. This is part of what we will be discussing in the review of the concession agreement,” he said.
NPA To Commence Recruitment As Succession Plan– Usman
The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Usman, says the authority will commence the recruitment of younger professionals into the service in view of the ageing workforce.
Usman disclosed this at a news conference to round off her ongoing tour of Calabar port, which ended on Friday.
According to her, there is a lot of skills and knowledge that need to be transferred and we should be able to transfer knowledge and skills.
Usman said that the authority would embark on recruitment drive and look at the organisational structure to determine how the recruitment would be carried out. She said that the management was looking at succession planning and recruitment of people.
“We met an arrangement on ground concerning the decision to recruit as the present workforce is ageing.
“We want to recruit specialists, mariners, critical operational staff. These are those positions that we will be targeting.
“We encourage every member of the public to be on the look-out for the advertisement of vacancies and to apply,’’ the News Agency of Nigeria (NAN) quotes Usman as saying.
She said that the 10-year old port concession exercise is due for a review holistically, adding that the review will broadly examine all facets of the terms of port
concession engagement.
The managing director said the review would cover areas like financing models and the concession environment.
According to her, 10 years after, we have to revisit the concession exercise because we believe it is time to do that.
She said: “We would reach out to the ICRC and they would be part of the review.’’
Usman said that as the nation’s economic climate changes, there was need to adjust.
She also said that many agencies including the NNPC were indebted to the NPA to the tune of huge monies, adding that the management will proceed aggressively to recover the debts.
Read More:
http://guardian.ng/business-services/npa-to-commence-recruitment-as-succession-plan-usman/
Buhari Considers Hadiza Bala Usman As Head Of NPA
In a bid to inject a fresh pair of hands to run the Nigerian Ports Authority (NPA), the Minister of Transportation, Mr. Chibuike Amaechi, has submitted Ms. Hadiza Bala Usman’s name to President Muhammadu Buhari to take over as the new managing director of NPA, according to THISDAY.
Should Buhari approve the recommendation, Ms. Bala Usman, 40, will become the first female chief executive of a top tier federal government agency and of the NPA.
She shall take over from Alhaji Habib Abdullahi, who was reinstated by Buhari in August 2015 as the managing director of NPA, after he had been shown the exit by former President Goodluck Jonathan in April 2015.
Sources in the presidency, who confirmed that Ms. Bala Usman’s name had been sent to the president, said Amaechi had decided to make the changes in order to overhaul the NPA.
Amaechi, it was gathered, is not particularly impressed with the way the NPA was being run and has decided to effect a change of the executive team as soon as possible.
A presidency source said that the minute Ms. Bala Usman’s name was submitted to the president, Buhari was happy to consider the recommendation, given the past relationship he had with her father, the late Prof. Yusufu Bala Usman, who was a renowned Ahmadu Bello University (ABU) academic, historian and activist before his death some years ago.
Amaechi was also believed to have recommended Ms. Bala Usman, on the grounds that two chief executives of the foremost parastatals under his ministry – Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Railway Corporation (NRC) – are from the south, and he would rather have an equitable distribution of appointments into the agencies under his ministry.
Ms. Bala Usman, who is currently the chief of staff to the Kaduna State Governor, Nasir el-Rufai, and a member of the All Progressives Congress (APC), was born in Zaria, Kaduna State, on January 2, 1976.
Credit: Thisday