REVEALED: Hadiza’s NPA law less, never obeyed court orders

As the suspended managing director of Nigerian Ports Authority (NPA), Hadiza Bala Usman continues underground efforts to be reinstated in office more facts have emerged on her reign at the ports authority.

It was disclosed that her acts of impunity and arbitrariness that have not only put Nigerian investors in the port industry in a very difficult situation but had also attracted over 50 law suits that will cost the Authority a fortune to prosecute the cases.

Some of those acts of impunity National Mail learnt were knee jerk reactions that protect the privileged few, ignoring the greater good of many.

Clear examples were those involving Global Marine Systems Limited and Intergrated Logistics Limited (INTELS) whose leases were suddenly cancelled after they were approved by NPA and also that of BUA Group. The result was an atmosphere of instability created which sent wrong signals to potential investors in Nigeria and beyond as a country that does not respect the sanctity of agreements.

It was disclosed that some of those who became casualties had to go to court. “So far there are about fifty two of such litigations pending with different courts which has stalled the activities of the agency and increased operational costs,” a report on the Hadiza-led management of NPA seen by National Mail noted.

It was also disclosed that NPA’s impulsive and arbitrary actions under Hadiza created reputational risks for the Authority.

According to the report, apart from cancelling the concessions given to GMSL and INTELS, Madam Hadiza also cancelled the concession given to a company called Lilypond Container Terminal without the knowledge of the Ministry and converted it to a truck park.

She once shut down a terminal in Port Harcourt belonging to BUA Group for alleged safety infractions, resulting to an annual revenue loss of about N2 billion to both Federal Government and terminal operators.

In a similar development, a source close to BUA management told our correspondent that a few weeks ago, against subsisting court orders, Hadiza directed that all BUS ships should not be allowed to berth

Also, it was disclosed that the suspended MD continuously flouted extant civil service regulations and obtained her approval directly from the President.

A development that was said to be a problem to the Ministry officials as it made coordinated policy making and oversight of the maritime sector quite difficult.

However, when the suspended MD learnt that the approval for her suspension and probe was obtained from the same presidency, she reportedly turned around and accused the President of breaching government procedures. Her record of going above the head of her Ministers to obtain approvals from the President places her in a shaky moral ground in insisting that due process should be followed in her suspension.

Wel learnt that the suspended MD had earlier transferred the procurement office away from the Executive Director in charge of Finance and Administration, to be directly under her office. With that decision she took firm control of the procurement process and easily manipulated to suite her interests. Dangote Group of Companies owned by Africa’s richest man Aliko Dangote was reportedly one of the major beneficiaries.

The withdrawal of the licenses of INTELS is another decision which drew a lot of public attention. This was because the former Vice President and Presidential aspirant of the opposition People’s Democratic Party (PDP) in the last election, Atiku Abubukar was at that time a major shareholder in the company. Hadiza allegedly used a cloak of partisanship to create unfounded disputes between NPA and INTELS to further what has now been seen as a different agenda.

Curiously it was the same MD who authorized that berths 9, 10 and 11 be integrated in a preexisting concession agreement with INTELS and informed them about same in a letter on the 7th of November 2018 REF ONN/LG/AD/T.3/599 signed by one Alhassan Ismaila Abubakar, Port Manager, Onne. A reminder was written on the same issue on the 23rd of November. An acceptance from INTELS was conveyed to NPA in a letter Ref INTELS/2018/11/27/OUT/001752 dated 27th November 2018 signed by the Managing Director where he pointed out that the computation of the fees for the berths for 2013 was erroneous. A reconciliation meeting was proposed for the integration process to commence.

Agreement was reached between INTELS and NPA. Payment commenced but midway NPA reportedly reneged.

On the 4th of December a debit note of N1,035,000,000 was issued to INTELS by NPA which was accepted on the 20th of December and reiterated its acceptance for berths 9,10 and 11 into their concession agreement and agreed that payment will be in three installments commencing from January 2019. Payments commenced on schedule.

Things were going on smoothly and INL was waiting for the final execution of the agreement when it was revoked by NPA in a letter signed on behalf of the MD by one Engr. A. R Mohammed, General Manager, Engineering, asking INTELS to vacate the premises on berths 9, 10 and 11. INTELS had no option than to head to court to protect their rights. While the controversy raged, the Minister of Transportation tried to direct her to halt the hostilities against the company but she rebuffed the idea. Although a court order granted by a Rivers State High Court ring fenced INTELS from being ejected from berths 9/10/11, Hadiza went ahead and kicked them out.

Meanwhile, the optics of the action of NPA appeared political as they were speculations that the fate that befell the company was a direct way of targeting Vice President Abubakar Atiku.

Some people even assumed that the orders expressly came from Buhari himself. The management of the company panicked. Few weeks later, the company announced the removal of Atiku from their board.

According to the report, in a letter addressed to the suspended MD on the 29th December 2020, the Managing Director of Orlean Invest Holding Limited (holding company of INTELS) formally communicated the exit of Mr. Atiku Abubakar from the shareholding structure of INTELS group. According to him, this was to break free from any form of political interference and pave a way to resolve the lingering multiple disputes between the company and NPA especially the aftermath of the cancellation of some of their contracts.

It was noted in the report that an interesting part of the Hadiza reign in NPA was that when some of these decisions were taken and parties go to court, NPA under Hadiza never respected court orders thereby posing serious reputational risk suggesting that Nigeria is lawless and does not respect the sanctity of agreements. Potential revenue sources were lost which negatively impacted on the economic status of the country at a time when the COVID-9 pandemic and fluctuating commodity prices had distorted budgetary projections.

Yet figures of her overhead cost appear bloated. So far the extent of damage done to the sector is yet to be fully determined and quantified. Whether and to what extent this will be revealed depends on thoroughness of the work of the administrative probe panel. Although maritime stakeholders are already celebrating her exit many observers suggest that it will be best to adopt a wait –and – see attitude.