The Association of Shipping Line Agencies (ASLA) has described the presidential directive given to the Nigerian Shippers’ Council to act as the economic regulator of the port as an ordinary minute of meetings at the Federal Ministry of Transport.
This was part of argument tendered by Lead Counsel to the shipping companies; Mr Chidi Ilogu (SAN) when the case filed by the shipping companies against the Shippers Council came up for hearing at the Federal High Court in Lagos, yesterday.
The Association of Shipping Line Agencies (ASLA) has described the presidential directive given to the Nigerian Shippers’ Council to act as the economic regulator of the port as an ordinary minute of meetings at the Federal Ministry of Transport.
This was part of argument tendered by Lead Counsel to the shipping companies; Mr Chidi Ilogu (SAN) when the case filed by the shipping companies against the Shippers Council came up for hearing at the Federal High Court in Lagos, yesterday.
Presiding Judge, Justice Ibrahim Buba, after listening to arguments from all parties involved in the case, then fixed 17th of December 2014 for ruling.
The arguments centered on the alleged illegality of the Shipping Line Agency Charge (SLAC) and the Memorandum of Understanding (MoU) signed with the Shippers’Council, purportedly binding the shipping companies not to re-introduce any charges.
In his argument, Mr Ilogu argued that no Presidential or Ministerial directive should supersede the provisions of the law, even as he stressed that the Council is acting contrary to the Acts that established it as well as that of the Nigerian Ports Authority.
Mr Ilogu said that there is an on-going negotiation between the Shippers’ Council and the shipping companies, regarding local shipping charges even as he urged the court to direct them to conclude on it.
On his part however, Counsel to the Shippers; Council, Mr Emeka Akabogu tendered that the Shipping Line Agency Charge (SLAC) being collected by shipping companies is an illegal charge which was introduced through the back door. He said that there was no negotiation between the Council and shipping companies.
The only agreement according to him is a Memorandum of Understanding (MoU) signed in 2001 by the Shippers’ Council, shipping companies and the shippers; an agreement which he claimed had been violated by the shipping companies.
Harping on the powers of Shippers’ Council to act as economic regulator, Akabogu said that the Council rely on Section 5 of the 1999 Constitution which confers executive powers on the President, irrespective of Acts, saying that directives can be executed directly by him or through the vice president or through his ministers.
"The letter of the Federal Ministry of Transport clearly and unequivocally directed Shippers’ Council on 20th February 2014 to act as economic regulator, therefore the Council has acted validly within the constitution in taking the steps it took" Akabogu told the court.
Akabogu said that the shipping companies have acted contrary to the MoU of 2001 which says that new charges must not be introduced by the shipping companies. He said that they have however failed to present the court with any other agreement between them and the shippers’ council.
On his part, Counsel to second defendant in the case; Shippers Association Lagos State (SALS); Mr Osuala Nwagbara said that shipping companies had introduced shipping line agency charges without consultation with parties involved in the MoU signed in 2001.
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