- demands $674 million
Intels Nigeria Limited is not taking the termination of its agreement lightly, as it has written a letter to the Nigerian Ports Authority calling the alleged termination highly injurious to the company.
News broke yesterday, that the Attorney General of the Federation (AGF) Abubakar Malami had asked the agency to terminate the agreement as it was unconstitutional, and violated the TSA policy.
Intels, owned by former Vice President and a presidential aspirant for 2019, in a letter addressed to the Managing Director of the NPA, stated that it was being owed the sum of $674 million excluding interest and $109 million for additional work done and the NPA had proposed both parties open a joint account, in which all revenues would be paid. 30% of revenues were to go to the NPA, and the rest to reduce its debt to Intels.
The Treasury Single Account (TSA) which was one of the reasons given for the termination of the agreement, did not exist as at the time it was signed.
Intels also stated in the letter that it was in a tight spot financially due to the money owed by the NPA, and had taken several bank loans. The firm was also of the opinion that its agreement with the NPA would be in compliance with the TSA policy, as long as it was able to deduct its entitlements.
National Daily gathered that Intels may decide to take the case to court, if it does not get a favourable response from the NPA in order to recover its debt and get a clear interpretation of the termination order.
Firms with similar arrangements with the Federal Government will also be watching keenly. Banks and other financial institutions that gave Intel loans will also pay keen attention to the unfolding drama.
Recall that Nigerian government has directed the Nigerian Ports Authority (NPA) to terminate the boats pilotage monitoring and supervision agreement that the agency has with Intels Nigeria Limited, a company co-owned by former vice president Atiku Abubakar.
Government says the contract with Intels, a leading integrated logistics and facilities services provider in the maritime and oil and gas logistics sectors of the country, was void ab initio.
Attorney General of the Federation (AGF) and Minister of Justice, Mallam Abubakar Malami (SAN), in a letter dated September 27, 2017 to the Managing Director of the NPA, Ms. Hadiza Bala-Usman, said that the agreement, which has allowed Intels to receive revenue on behalf of NPA for 17 years, violates the Nigerian Constitution, especially in view of the implementation of the Treasury Single Account (TSA) policy of government.
Intels, also co-owned by Mr. Gabriel Volpi, an Italian national who also has Nigerian citizenship, will lose several millions of dollars in the cancelled deal.