Stories by Isaac Anumihe
From every indication the controversy surrounding the dredging of Calabar Channels may have simmered down following the report of the audit committee set up by Nigerian Ports Authority (NPA).
The committee headed by the Executive Director, Engineering and Technical Services of NPA, Professor Idris Abubakar in its report of November 16, 2016 recommended that the Calabar Channels Management Company and Niger Global Engineering and Technical Company be paid the balance of their contractual amount and that the company should continue its work till completion.
The committee in its recommendation (page 13 (iii)), stated among others that having verified volumes dredged, all outstanding payments due to Calabar Channel Management Company Limited (CCMCL) be effected in line with the provisions of the JV agreement.
Also, on paragraph iv of the same report, the committee said: “In view of the subsisting presidential approval for the JV, CCMCL be allowed to continue with its operation but at a reduced scale to be determined by NPA’s need and CCMCL’s Technical Board and Finance Committee.
Documents produced by Niger Global Engineering and Technical Services Limited, partners to CCMCL, indicate that the dredging firm was paid over $12 million, contrary to claims that the dredging company did not do any job.
United Bank for Africa (UBA) document dated September 2, 2015 entitled: ‘“Re:Confirmation of payments to our technical partners’ reveals that the following payments were made to Niger Global’s technical partners by the bank: Societe De Dragage/Luxemburg SA was paid the sum of $3,600,000 on August 21, 2015; Dredging International Services (Cyprus) was paid $1,207,440 on August 24, 2015 and Nigerian Westminster Dredging & Maritime Limited was paid $500,000.
“Also, a letter from the Nigerian navy dated July 7, 2017 with reference no VT:015/73.200.vol IV.70 confirmed that the navy carried out security services for the dredging of Calabar Port for the period between November 20, 2014 and January 15, 2015.
“This is to confirm that the Nigerian Navy through MMS Victory, Calabar provided all the security services to the personnel and equipment of Calabar Channel Management Company for the successful execution of the dredging exercise. The operation was hitch-free based on our assessment hence there was no security breach during the period” a statement, available to Daily Sun, said.
Also, the audit committee in its report on page 3 noted that advertisements were placed on April 24, 2004 vide public notice No 3551 in three national dailies requesting for bids from interested companies for the management of Nigerian ports access channels in Lagos, Warri, Calabar and Bonny/Port Harcourt and that 19 companies including Niger Global Engineering & Technical Services Limited responded by submitting their bids.
However, some stakeholders have reacted to the report. While a stakeholder insisted that they should be paid, another saw it differently.
Chief Osita Patricks Chukwu, a freight forwarder and an industry analyst, maintained that CCMCL deserves to be paid its balance saying that the government should not owe CCMCL because owing it will send a wrong signal to other prospective investors.
“If you have done well in the work given to you, you should be paid. I don’t subscribe to owing the companies that have done their job well. That will send a bad signal to other prospective investors. The international community will take Nigeria as a people who are not serious. Let people not continue to deny opportunities for new investors that are coming in.
It is not everybody that can dredge. Dredging is quite tedious . It is very very hard. So, if somebody has done that considering the risk involved, he should be paid” he said.
Another maritime expert who does not want his name in print saw the issue differently. In his view, the Calabar Channel has dragged for over 10 years. He likened the contract to that of railway contract which has gulped so much money.
“The purpose of dredging is to accommodate larger vessels and up till now, larger vessels are not calling at the port of Calabar. There is maintenance dredging. We don’t know the extent to which their job has impacted on the movement of vessels particularly, ocean-going vessels at the port of Calabar. Calabar dredging has been controversial for over a decade. So much money has been sunk into the contract. Some of us argue sometimes that when you say you dredged, the logical question to ask is: ‘where is the sand you dredged out?’ If you dredge, what you dredged out will be seen. Uptill now bigger vessels don’t call Calabar Port because it is not navigable. So, what have they achieved? The government will still re-award the contract. This is the kind of contract they were enjoying at the railways. Abacha did it, Obasanjo came and did the same” he said.
When Daily Sun contacted the Principal Manager, Public Relations of Nigerian Ports Authority (NPA), Mr Ibrahim Nasiru, he denied knowledge of the panel.
“I am not aware of any panel like that” he simply quipped.
But the fact remains that when the port is fully functional, it is expected that the Calabar Port would increase the volume of vessel traffic and cargo throughput in the port; decongest Lagos ports and reduce cost of doing business for Calabar-based businessmen who spend additional transport cost to take delivery of their consignments in Lagos and Onne ports.
The first contract for the dredging of the port was awarded in 1996 during the administration of the late General Sani Abacha to a little known Chinese company that showed up for a while and simply vanished. Then, 10 years later, the administration of former President Olusegun Obasanjo awarded the contract again to two Dutch companies at a cost of $56 million and both companies left the contract without completing their assignment.
It is for these reasons that on November 17, 2014, the immediate past President Goodluck Jonathan flagged off the operations of Calabar Channel Management Limited (CCMCL), a joint venture company between Nigerian Ports Authority (NPA) and a consortium of companies led by Messrs Niger Global Engineering and Technical Company Limited, for the dredging of the Calabar Port.