Port concession extension was an under table deal – House Committee Chair

The House of Representatives Committee on Ports, Harbour and Waterways has said that the recent extension granted some concessionaires was an under the table deal vowing to probe it and correct any anomaly.

In exclusive interview with MMS plus, Committee Chairman, Dr. Patrick Asadu said that the extension granted concessionaires will not go without being probed.

Asadu who spoke to at the just concluded retreat held for members of the Committee said that the leadership of the National Assembly has asked the Committee to do a holistic probe with a view to saving time and money.

He explained that the House raised the issue and decided that a thorough investigation be carried out with a view to knowing how monies realized from the port reform exercise was spent.

He said “The House itself decided to take the issue to a level where it was raised on the floor, and a decision was taken by the whole House that a thorough investigation be carried out on how the port reform exercise was done, how much was realized from the entire exercise and how these monies managed or mismanaged.

“In the course of our investigation, the leadership of the House got wind of what happened and decided to carry a holistic investigation on the issue”

“Is it true that there was port concession extension and how was it done”

Recall that the concession extension granted  six port terminal operators  generated controversy among stakeholders in the maritime industry, with many alleging that the extension did not follow due process. Confirming the extension, Former Managing Director of the Nigerian Ports Authority, (NPA), Mallam Habib Abdullahi, had said that ENL Tin-Can Island Container Port, (TICT), Josephdam, Port and Cargo, African Maritime Services, Port Terminal Operators Limited, (PTOL) and Ecomarine Terminals Limited in Calabar, Cross River State have been granted extension of their concession for another five years each.

Reason given for the extension ranged from the fact that some encumbrances  were noticed in some terminals just as wrong surveys were also done in some of the terminals. Other reasons are computation of throughput on export laden and empty containers and relocation of terminal. It is also being argued that NPA, has reneged on some of the terms of agreement it entered into with the concessionaires. In the agreement, NPA was supposed to provide power, security, water and other sundry services but as at the time of filing this report, virtually all the terminal operators provide these services for themselves. Commenting on the development, the Director General of the Infrastructure Concession Regulatory Commission, (ICRC), Mallam Aminu Diko said that the Commission was aware of the fact that extensions were granted to some terminal operators. Diko also said that the Commission was not part of the extension process, adding that the regulatory commission was studying the situation and appropriate action would be taken when due. According to Diko, there are processes for extension of concession period as well as for new concession. “We were not part of any extension of concession period for some terminals because we were not aware of it” he added. “If NPA does not bring it to our  notice, we will not know about it except we stumble on the information like in the case of the one  in question. We are aware that five concessions were extended by the National Council for Privatisation and as you know, the NCP is being headed by the office of the Vice President. What we intend to do is to ask for all the document relating to the extension and see what was done.” He disclosed that the concessions were extended by the National Council for Privatisation, (NCP) and that the Council is domiciled in the office of the Vice President. The extension, it was gathered was granted the terminal operators at the tail end of the President Goodluck Jonathan’s administration. Diko also said that the ICRC has called for the document relating to the extension. Asked what the Commission will do if the extension was found to have been done in an haphazard manner, Diko said: “We will cross the bridge when we get there.”