Financial Interest Responsible For Rush Into CRFFN Governing Council – Olanrewaju

A former Chairman of the Governing Council of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Aare Hakeem Olanrewaju has written the Honourable Minister of Transportation, Hon. Rotimi Amaechi lamenting that financial interest is the major reason behind endless rancour among the freight forwarding practitioners’ quest to be Governing Board members of CRFFN.

Olanrewaju who stated this in a letter dated 7th March, 2022 and made available to our correspondent acknowledged that the persistent clamour by the five accredited associations in their 6:6:1:1:1 sharing formula quests over and in preference to a credible professional electioneering process stemmed from this background.

He, however, disclosed that the Regulation 2010 (Annual Subscription & Other Fees) made by the first Governing Council members pursuant to Section 6(2c) wherein the Practitioners Transaction Fee (PTF) which later was christened the Practitioners Operating Fee (POF) was regulated accordingly.

He explained that the fee was aimed at rapidly developing and galvanizing the freight forwarding profession and to place it on the global map especially so among the comity of professionalize freight forwarding nations.

The veteran freight forwarder further revealed that it was resolved that the accredited associations would receive a yearly subvention (subject to the CRFFN management) for the sole aim of training programs (capacity building) adding that the subvention disbursement would be effected with consideration to respective associations’ numerical strength and spreads across the operational zones.

Noting that such subvention was subject to yearly retirement and auditing by the CRFFN auditors, he pointed out that this was agreed on in order to foster and integrate the culture of both professionalism and accountability amongst the freight forwarding accredited associations.

“When there was no constituted Governing Council in place, the former Registrar, Sir Mike Jukwe, in collusion with some Ministry staff and associations leaders went from behind on the 26th day of February, 2015 and  amended the provisions of Section 9(1) of the above Regulations 2010  with a caveat which reads thus: ‘CRFFN collects 60% as Internally Generated Revenue (IGR), the associations will collect 35% as provided by the CRFFN Act (Accreditation of Associations of Freight Forwarders) Regulation 2010. The Registered Freight Forwarders/License Customs Agent ( RFF/LCA) is entitled to the 5% of the Practitioners Operating Fee which will be collected by the CRFFN and remitted to the concerned RFF/LCA.’

“At no time did the Accreditation of Associations of Freight Forwarders –  Regulation 2010 contemplated nor contained such dangerous tends except perhaps, to state the obvious suspicion that the said regulation might have been manipulated by the magic hands of the promoters.

“The crux of the matter revolves around this premise leading to the rampant press fires works, the deliberate insistence, resistance and subtle threats and refusals by the leadership of the accredited associations to any suggested or reasonable professional approach in matters of election, etc. originates and revolves around this financial interests.”

He, however, informed that the only time the accredited associations would be considered and deemed fit for an administrative fee of 2 %  of total CRFFN yearly income generation, according to Regulation 2010, was when the CRFFN would have successfully accredits upto 10 associations (to represents all the professional areas of specialities) and then puts up a 10 years seal for further associations accreditation.

According to him, as presently constituted, the number of unaccredited associations by the CRFFN are far greater than the five accredited associations and under such arrangement, industrial peace cannot be easily guaranteed.

“It was for the avoidance of these dangerous trend and for reasons of fostering adherence to professional conducts and integrity that the first and second Governing Council leadership was very careful with this  type of financial patronages to associations. Mostly so, because the possibility of the unaccredited associations coming together to join issues with the CRFFN management may be likely, hence, the need to nurture regulation that will engender industrial peace other than sacrificing  the peace we so much canvassed on the altar of poor regulatory efficiency,  thereby leading to further set backs.

“In addition, let me strongly posit here that the civil servants seconded to the Governing Council in the first and second Council insisted then, that since the CRFFN was interpreted as an agency of the government by the Attorney General of the Federation, at no time must government be seen as sharing its revenue with an individual or corporate body, perhaps, this maxim seems no longer in place.

“May I at this juncture implore the Honorable Minister to use his good office to avert looming professional chaos ahead, talking in the realm of futuristic”, he stated.

He went on to posit that association owners/leadership resorted to selecting freight forwarders that were loyal to them as reported that some of them co-opted and compelled some of their members to pay millions of naira in order to secure their nomination to represent their associations in the Governing Council.

“Few of them in their open remarks taunted that there is always a return on investments. Analysis of vested interests in the 35% yearly income allocation to the association will be articulated and forwarded to your attention, after investigation”, he assured.

The former CRFFN boss recalled that as at 28th January, 2012, out of the over 5,000 applications uploaded into the CRFFN portal, a total number of 1,435 individual membership and 445 corporate membership and 2 freight forwarding associations were duly verified/accredited, inducted and certificated at the maiden induction of freight forwarders held at the main auditorium, University of Lagos, Akoka thereby marking the formal establishment of the Register of Freight Forwarders for onward administration.