Group disagrees with EFCC on N13.7bn Warri channel dredging contract
The Cadrell Advocacy Center, a non- governmental advocacy group, has disagreed with the Economic and Financial Crimes Commission (EFCC) over the controversial N13.7 billion Warri channel dredging contract awarded by the Nigerian Ports Authority (NPA) to Dredging International Services Nigeria Limited.
A statement signed by Evans Ufeli, executive director of the group, said that they petitioned the EFCC to probe the bidding process for the Warri channel dredging contract, which resulted in investigations by the House of Representatives and Bureau of Public Procurement (BPP).
Ufeli alleged that contrary to the EFCC’s report that Dredging International Services Limited (DISL) is not a convicted company; a study of the incorporation documents of DISL obtained from the Corporate Affairs Commission in Abuja revealed that Dredging and Environmental Services Nigeria Limited partly owns 49,500,000 shares of the company and another 500,000 shareholding in Dredging International NV.
Ufeli further alleged that the EFCC concluded the investigation without resolving the issues that came up in the cause of investigation. The conclusion reached by EFCC, he said, has raised more questions for the Federal Government and DISL rather than provide answers.
He said that the EFCC report states that the companies indicted were Dredging International Services Cyprus (DISC) and Dredging International NV.
Recall that the Federal Government in 2007 awarded to Dredging International Cyprus in a Joint Venture Agreement, the contract for the dredging and maintenance of the Bonny Channel River in Bonny, Rivers State. This led to the establishment of Bonny Channel Company Limited, owned 60 percent by the NPA and 40 percent by DISC.
It was also reported that Dredging International Services, Cyprus, and its official were alleged to have been convicted by a Swiss Court in 2012 for involving in bribery scandal with some Nigerian officials.
“The Bonny Channel Dredging contract referred to above is still on-going despite the company’s conviction by a court in Switzerland for bribing Nigerian officials over the award of the contract,” the group stated.
“Dredging International Services Cyprus was convicted on the 2nd of May, 2012, and fined one million Swiss Francs. At that time, Bart Vandemeulebroucke and Steven Poppe were both directors in Dredging International Services, Cyprus and also directors of Dredging International Services Nigeria. And till date, their positions remained same in both companies,” the group added.
Ufeli said that the exclusion of other 14 bidders on the basis of none availability of tax documents, deposed affidavit, ITF, PENCOM & TCC (as contained in the letter to the Ministerial Tender Board, which was also sent to the Permanent Secretary, Ministry of Transport’s, the BPP dated 6th February, 2018) was wrong.
Questioning why the Federal Government disqualified 14 companies from the bidding process, the group advised the EFCC to apply the above rule across board and not hold on legal technicalities to award contracts of such nature to companies alleged to have been partly owned by convicted company.
“As a result of the Joint Venture, the Federal Government awarded dredging contracts worth (US$ 70 million) to companies under the DEME Group, Dredging International Services, Cyprus and Dredging International Services, Nigeria, without competitive bidding,” Ufeli alleged in the statement.
The group claimed that Dredging International Cyprus, which the EFCC admitted is a convicted company that contributes to the financial figures of DISNL.
It further claimed that EFCC report was silent on NPA’s role and relationship with DISL during the bidding process.