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Home » FG UNDER PRESSURE TO EXTEND DESTINATION INSPECTION CONTRACT BY FIVE YEARS

FG UNDER PRESSURE TO EXTEND DESTINATION INSPECTION CONTRACT BY FIVE YEARS

by Joshua
May 26, 2013
in Uncategorized

About one month to the expiration of the contract which the Federal Government renewed for them in December 31, last year, the three destination inspection service providers have engaged top level lobbyists to put pressure on government to acquiesce to their demands to grant them a complete renewal of the controversial contract.
 The lobbyists who include top politicians and corporate friends of the inspection agents have penetrated the fortress of Aso Rock and are currently getting an edge over the Nigeria Customs Service in the battle royale for cargo inspection.

About one month to the expiration of the contract which the Federal Government renewed for them in December 31, last year, the three destination inspection service providers have engaged top level lobbyists to put pressure on government to acquiesce to their demands to grant them a complete renewal of the controversial contract.
 The lobbyists who include top politicians and corporate friends of the inspection agents have penetrated the fortress of Aso Rock and are currently getting an edge over the Nigeria Customs Service in the battle royale for cargo inspection.
Sources close to both parties confirmed to our correspondents that the Presidency is yet to decide on which way to swing, but from all indications, it is tilting more in favour of  the three destination inspection agents; namely Cotecna, SGS and Globalscan.
The trio were first awarded the contract in 2006, but when the contract lapsed on December 31, last year, the Minister of Finance and Coordinating Minister of the Economy; Dr Ngozi Okonjo Iweala  recommended an extension by six months, and it was approved by President Goodluck Jonathan on the excuse that the Nigeria Customs Service was not ready to take over the responsibility of destination inspection.
Shipping Position Daily learnt that the recent open face-off between the Nigeria Customs Service and Globalscan is the peak of months of undercurrents between the Customs and the service providers.
Shipping Position Daily recalls that Globalscan had raised an alarm that the Customs does not have sufficient complement of officers to handle the scanners and that there is a high possibility of radiation from the x-ray machines.
In response, Customs had accused Globalscan of incompetence and not adhering to the terms of engagement and installing the scanners well behind schedule.
But prior to the open hostilities the Customs has been hinted by its friends about the intense lobby by the service providers to extend the contract by another five years, a development which also jolted Customs.
Sources at both Customs and the Ministry of Finance confirmed to our correspondents last week that what may eventually tilt the scale in favour of the service providers is the promise by the arrowheads of their lobbyists that they will contribute handsomely to the 2015 campaign purse.
A source in the ministry specifically told Shipping Position Daily that “we all know that these service providers are backed by political heavy weights and the assurance is that they will come in handy for 2015, we can not quote them or hold them to their words on this, but I can assure you that no decision has been taken yet”.
When reminded of the fact that time was of essence, our source who plays a key role in the argument for and against the decision-making process assured our correspondent that soon, government will take a decision.
Surprisingly, it was confirmed that the greatest support for the service providers is now coming from the Finance Ministry, a clear departure from the recommendations of a  three-man World Bank team appointed by the Finance Minister to appraise the preparedness of the Customs for destination inspection in July.
 A source hinted our correspondent last week that the team, in its report which was submitted in March this year had affirmed that “NCS is ready to assume control of scanning operations”.
Shipping Position Daily recalls that the World Bank Lead E-Governance Specialist, Ramesh Siva, had said, after the teams assessment that: “We came to see what the customs need to do as the current destination concession agreement comes to an end in June. So it looks they are well prepared but we will still need to have more detailed discussions to understand how ready they are to take on this responsibility,”
But the source confirmed that team had recommended that “the NCS has adequate professional competence in key fields including many functions currently performed by DI’s, namely scanning, valuation and classification.”  
The World Bank team had also observed that Nigeria’s Destination Inspection programme si five times more expensive than a similar system in South Africa. According to the leader, while South Africa spent $56million over three years on its Customs modernisation programme and achieved full success, Nigeria spent $294.4 million over five years on Destination inspection and ASYCUDA software.
However, when a senior official of one of the three service providers was confronted with the allegation that they were lobbying and promising to fund the 29015campaign, he denied vehemently, saying that the companies have every right to protect their interests.
Sounding alarmed, he asked: Aren’t we doing what we were contracted to do, so why do they want us to go, government has the right to extend any contract, didn’t the same thing happen in Ghana, why is it that in Nigeria, we paint people black when they are not in the same camp as you. I am sure those who are saying this are from the Customs”.


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