Intels Shortchanges Nigeria – Reps Panel

A House of Representatives adhoc panel said yesterday that Intels has been shortchanging Nigeria in view of the revelations made by the Managing Director of the Nigeria Ports Authority (NPA), Hadiza Bala Usman.

The panel, which is investigating the circumstances that led to the sudden termination of a contract between Intels and NPA headed by Deputy Chief Whip Pally Iriase, was angry that the management of Intels did not deem it fit to appear before it during a public hearing.

Members of the panel described Intels action as an act of impunity, saying they would not tolerate that. They rejected a representative of the company, who is its legal supervisor, Mr Kenneth Irabor.

They wondered why a company that is at the centre stage of the probe could not send its head to appear before the panel.

The lawmakers were appalled that over the years, Intels has been operating a contract with the NPA and remitting only what it deemed fit to the government without any sharing formula.

The NPA MD, while responding to questions from members, said based on the contractual agreement entered with Intels before her assumption of office, there was no sharing formula from revenues collected by the company on behalf of NPA.

She said they gave Intels the opportunity to remit whatever it liked to the government, but that when she assumed office, she initiated a supplementary agreement that would allow for a sharing formula of 30 percent to NPA and 70 percent to Intels.

She said some international oil companies (IOCs) had written NPA several letters saying they would prefer to be paying their fees to government accounts instead of through Intels account.

“The agreement provides for Intels to collect 28 percent of revenues (management fee). There was no distribution formula. It was Intels that decided how much it would give to NPA. I feel that Intels shouldn’t be the one to decide on how much to give NPA,” she said.

At this point, Iriase said: “It’s apparent that Intels has been shortchanging Nigeria. Yes, we have to say it. This is a company that we’re trying to see that justice is done to, but they have been shortchanging us since they decide on their own what to give government.”

Bala Usman also said she has given Intels an ultimatum to pay the outstanding debt of $48 million that it owes NPA between November, 2016 and November, 2017.

 

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