House of Reps re-visit $195m Deep Blue HSL contract scam

After four years of dilly-dallying, the House of Representatives Committee on Navy is set to re-open an alleged $195 million contract awarded to Deep Blue HSL International by the Ministry of Transportation in 2017 to provide coastal security surveillance for Nigerian waters.

Recalled that the Federal Ministry of Transportation, on July 27, 2017, and on behalf of the Federal Government of Nigeria, entered into a contract known as the ‘Deep Blue’ contract of $195,300,000, an equivalent of N59,839,930,000, with a foreign private company, HLS International Limited, for the supply of certain security and surveillance equipment and systems.

In addition to the contract sum of $195,300,000, the Nigerian Maritime Administration and Safety Agency agreed to pay the sum of $19,530,000 to HLSI as ‘Management Training Consideration,’ while according to Appendix 4 of the agreement, both sums would be paid in monthly instalments over a period of 36 months from July 2017 to June 2020, as further payments were also made as of July 2017 to date.

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On Wednesday, the House of Representatives Committee on Navy announced February 22 as the commencement date for the probe of the Deep Blue Sea Contract, a project of the Nigerian Maritime Administration and Safety Agency (NIMASA).

The intention was communicated via a letter dated February 9 by the Chairman House Committee on Navy, Hon. Yusuf Adamu Gagdi and addressed to the Managing Director of Nigerian Ports Authority (NPA), which was received by the Abuja Liaison Office on Thursday, February 10.

The House is claiming that the Deep Blue Sea Contract was not captured in any Appropriation Act and insists that those behind it illicitly financed the project from the Cabotage Financing Fund, a dedicated money set aside to increase the capacity of indigenous shipping companies.

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According to a report by TheNewsGuru.com, the House has revisited the matter to further dig deep into the alleged award of the contract without following due process as the money in question was not budgeted for by the National Assembly (NASS).

Also to appear before the committee is the Managing Director of Nigeria Ports Authority (NPA) to explain the role the agency allegedly played in the contract scam.

The Committee on Public Petitions headed by Uzoma Nkem-Abonta, PDP, Ukwa East West of Abia State had investigated the matter in the 8th Assembly and found the ministry wanting and its report recommended to President Muhammadu Buhari to cancel the contract.