…N51bn allegedly missing

•No, it’s in TSA –NIMASA

By Isaac Anumihe

A fresh round of controversy is trailing the nation’s Cabotage Vessel Financing Fund (CVFF) as stakeholders expressed fear that an estimated N51 billion may have been misappropriated NIMASA.

The fund, which was established by the Federal Government in 2003 to help indigenous operators in the shipping industry grow their fleet so as to compete with their foreign counterparts, has not been accessed by indigenous shipowners fourteen years after being setup.

Worried that the fund may have developed wings, shipowners are now calling on the Economic and Financial Crimes Commission (EFCC) to investigate and unravel its whereabouts. They are also calling for the prosecution of anyone in possession of the money since the purpose for setting it up is not being achieved.

The Co-ordinator of Save Nigeria Freight Forwarders, Dr. Osita Chukwu,  for instance, called on EFCC and ICPC  to step in and recover the money before it finally vanishes into thin air.

“That money was earmarked for a purpose and if that purpose has not been achieved in over 14 years, it means that the  money is still available some where we donot know. If anybody should divert that money, EFCC should wade in. Also,  the National Assembly should intervene and investigate the whereabouts of the money. That is the work of the legislature. When the legislature is aware that the money meant for cabotage is not used, it should intervene. They should summon the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele;  Director General of Nigerian  Maritime Administration and Safety  Agency (NIMASA), Dr. Dakuku Peterside, and the Minister of Transportation, Mr. Chibuike Amaechi, to explain why the fund has not been accessed by shipowners when we are looking for opportunity to grow our maritime industry.

Another freight forwarder, Mr. Olusegun Ologbese, regretted that EFCC has been silent on the issues concerning the maritime sector for a long time.

“If that money is misappropriated, EFCC should come into the fray. It is just that EFCC has kept silent on the maritime sector for a long time. By the time it steps in, NIMASA or CBN will tell us where the money is,” he said.

Similarly, President, Merchant Navy Engineer, Matthew Alalade, bemoaned the delay in releasing the fund, saying the early release of the money will encourage shipowners to provide more ships, thus creating jobs for seafarers and provide jobs for them also.

“The government is  not encouraging  indigenous shipowners. They just kept the money in the bank. Todate, they have not touched it while shipowners are suffering in the hands of their foreign counterparts who freight our crude oil.   

However,  President, Shipowners Association of Nigeria, Greg Ogbeifun, told  Daily Sun that none of the shipowners has accessed the fund. He declined to say how much the money is at the moment or what remains of the fund and where it is domiciled now. He also expressed disappointment over the management of the fund, confessing that his members feel very strongly disappointed in government’s attitude. 

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“Only NIMASA can tell you how much remains in the vault. But not one dime has been disbursed to any shipowner. Well, as far as I know, the monies, I will imagine, have probably been moved to the Treasury Single Account (TSA) on the directive of the President. But I am not in NIMASA. I am not in the Central Bank of Nigeria. So, these are money issues I cannot really comment on. I don’t know where the monies are kept.

“We feel very bad about it and we know from investigations that NIMASA has done its bit. The problem is in Abuja, with the Ministry. That is where it is stuck right now,” he regretted.

Meanwhile, in his response, Head, Corporate Communications of NIMASA, Mr. Isichei Osamgbi, told Daily Sun that the money has been moved to the TSA and was no more with NIMASA.

According to reports, NIMASA remitted $140.8 million (N42.22 billion) into the Federation Account in five years but collected $270 million revenue from the Nigerian Liquefied Natural Gas (NLNG) vessels in 2015. But the remittance was not inclusive of the N4,985,000,000 and $39,025,017 operating surplus, which was also remitted to the Federation Account.

According to a former Director General of NIMASA, Mr. Haruna Jauro, who fielded questions during an interrogation by the Senate Committee on Marine Transport, only statutory revenue disbursements of the agency, which include a 25 per cent maritime fund and 5 per cent development fund for the Maritime Academy of Nigeria (MAN), Oron, had been undertaken.

He observed that N450 million was remitted to government coffers in 2011;  N6,441,383,583 in 2012; N13,833,431,883 in 2013; N9,732,349,682 in 2014 and N11,770,978,562 in 2015, adding that the agency had registered no fewer than 1,975 vessels in its ship registry. But the question begging for answers today especially from Nigerian shipowners remains where is the N51 billion cabotage fund. If it is still intact, when will it be disbursed.

Recall that the Dr. Goodluck Jonathan administration had  evolved the concept of Vision 20:2020 aimed at making the nation one of the 20 largest economies by 2020.

One of the vehicles the government wanted to use to achieve this ambitious programme was the Cabotage Vessel Financing Fund (CVFF), which is a product of the Coastal and Inland Shipping Act of 2003 and provides for the disbursement of loans to indigenous operators in the shipping industry to grow their fleet so as to become the major players in the industry rather than leaving the industry to the whims and caprices of foreign players.

It was also considered that if local shippers dominate the industry, they will employ more Nigerians who will bring in foreign exchange into the country and help grow the economy. The fund is derived from the 2  per cent surcharge on all cabotage contracts, which are deducted and warehoused in the CVFF.

The Coastal and Inland Shipping Act, otherwise known as the Cabotage Act, was enacted in 2003 to restrict the use of foreign vessels in domestic coastal trade to promote the development of indigenous tonnage and to establish a CVFF and for related matters.

The Act is stratified into nine parts and dealing with different aspects of the Act, namely, Part 1, Short Title and Interpretation; Part II, Restriction of Vessels in Domestic Coastal Trade; Part III, Waivers; Part IV, Licence to Foreign Vessels; Part V, Registration; Part VI, Enforcement; Part VII, Offences; Part VIII, CVFF, and Part IX, Miscellaneous.

Recently, the fund, which has grown to over N51 billion (about $255 million) and has  not been accessed by the shipowners is now a  subject of controversy as stakeholders are suspecting a foul play in the management of the fund.

NIMASA,  which is the manager and disburser of the fund, has dispelled such claims, saying the fund has now been transmitted into the TSA.