DISNL: Is it lack of reliable substitute or what that pitched NPA with convicted firm?
Getting to almost one year now, the issue of Nigerian Ports Authority (NPA) awarding channel dredging contract, worth $44.86 million for the dredging of the Delta Ports, Warri to a troubled Swiss firm, Dredging International Services Nigeria Limited (DISNL) has been trending and seeking answers.
But these long awaited answers refused to come from the right quarters starting from the NPA, Bureau of Public Enterprise (BPE) and even the Central bank of Nigeria (CBN) who facilitated the release of 15 per cent mobilization fund.
The questions begging for answers include does it mean that NPA was not aware of the conviction before awarding the contract? If NPA managing director is a shareholder in the company by virtue of being the chairman of Bonny Channel Company Limited (BCCL), a special purpose vehicle established by the NPA and DISC for the execution of the Bonny Chanel dredging, are there chances that NPA can afford to award related contract top another firm? If not, is it possible to posit that NPA is providing a level playing ground for competition in the industry?
Another question begging for answer is what is in the mind of NPA when upon EFCC and the House Joint Committee’s investigations are ongoing, it went ahead to release 15 per cent mobilization for a contract under scrutiny?
Besides, is it that there is no other viable alternative dredging company especially, indigenous firm (in view of local content policy of the federal government) or foreign group that can handle the job in question?
Why upon the confirmed conviction of the Swiss firm, it has continued to gain contractual patronage worth over N717bn from the Authority?
Was Certificate of no objection secured from relevant government agency for the job even when DISNL was still under investigation? Why has the Police and even the investigating EFCC not been able to invite the leadership of NPA for questioning on the issue?
Questions! Questions!! And questions!!! Now, begging for answers.
Business Hilights gathered that trouble had started on the matter when a non-governmental organization, Cadrell Advocacy Centre (CAC), accused some NPA officials of taking bribe in the award of the controversial dredging contract.
In a published public notice, CAC alleged that the Delta Ports dredging contract was fraudulently awarded to DISNL – a company known to all as being convicted by a Swiss court in 2012 for bribery.
CAC observed that “We wrote a letter dated March 6, 2018 to the Director General of the Bureau of Public Procurement, drawing his attention to the fact that DISL, to whom they were about to award a contract, was convicted by a Swiss court of competent jurisdiction. Awarding the contract to the company would be contrary to the provisions of the Public Procurement Act.
“Following our petition, we received a call in April 2018 from the Economic and Financial Crimes Commission (EFCC); they were investigation the matter. On visiting the EFCC office, we made statements and submitted documents and were told that the EFCC would get back to us if there was need.”
The group further stated that it also presented a position paper to a House of Representatives Joint Committee in May 2018, urging the lawmakers to request NPA to reverse the award of the contract on the grounds that DISL is a sister company of a convicted company, Dredging International Services Cyprus (DISC).
It said DISC was alleged to have been involved in a bribe for contract scandal with some officials of the NPA to the tune of $20 million. It was convicted and fined one million Swiss francs by the court for bribing Nigerian officials.
“Sadly, while pending the outcome of the EFCC and the House Joint Committee’s investigation, DISL mobilized men, equipment and materials to the site in July 2018, having been paid a 15% mobilization fee by the NPA.
“Till date, this convicted company is believed to have won jobs worth at least N717 billion from the NPA. It still maintains offices in Nigeria and continually enjoys government patronage from the same NPA whose officials are alleged to be beneficiaries of the bribe for which it was convicted.
“Curiously, the company still maintains the Bonny Channel Dredging contract in Nigeria for which it was convicted in Switzerland,” the statement read.
CAC revealed further that the Bonny Channel Company Limited, (BCCL), a special purpose vehicle established by the NPA and DISC for the execution of the Bonny Chanel dredging, had NPA Managing Director, Hadiza Usman as its Chairman and Bert Willie, the Managing of DISC, as its Managing Director.
Another shocking revelation by CAC is the allegation that the existing relationship, which was a conflict of interest, was not disclosed to other bidders for the job.
However, on why NPA is yet to provide response on the allegations of CAC, NPA spokesperson, Isa Suwaid confided in SHIPS & PORTS DAILY, a reliable maritime media group that the organisation was still working “on an appropriate response” to the allegations.
According to NPA image maker, “Yes, we are going to make our position known soon. I know the management is working on it. You can get back to me.”
The last question now is when will NPA come up with no hold-barred responses.
