Home Maritime Amaechi, Dakuku in trouble over N70.2bn Maritime security contract as Buhari cancels deal

Amaechi, Dakuku in trouble over N70.2bn Maritime security contract as Buhari cancels deal

by Business News Report

From right: Chairman, House Committee on Maritime Safety, Education and Administration, Hon. Mohammed Umaru Bago, Minister of Transportation, Rt. Hon. Rotimi Amaechi, CON, Chairman, Board of the Nigerian Ports Authority (NPA), Mr. Emmanuel Olajide Adesoye and Director General, Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside during the 2nd edition of the maritime Stakeholders’ interactive forum tagged: “Implementation of Executive Order I (Ease of Doing Business) in a secure maritime environment” held in Warri, Delta State.

Minister of Transportation Mr. Rotimi Amaechi and the Director General of Nigerian Maritime Administration and Safety NIMASA are in quandary over the upfront payment of $50 million to HLSI Firm Security and Technology without meeting the conditions stipulated in the contract; obtaining an end user certificate. The contract was for the provision of security within Nigeria’s maritime domain. Businessnewsreport gathered that NIMASA was supposed to have secured consent from the office of the National Security Adviser, get the buy in of Nigeria Navy before any payment was made to the contractor. But the Minister and the DG NIMASA in a hurry to get the deal done ordered payment without meeting the conditions stipulated  in the approval given to the ministry by the Federal Executive Council. NIMASA it was gathered is jittering over the matter and has set up an internal committee of lawyers looking for a way out of the mess. 

Businessnewsreport learnt that the attention of the National Security Adviser was drawn to the matter who then referred it to the President who then ordered a cancellation of the contract. The cancellation by President Muhammadu Buhari of the contract for the provision of security within Nigeria’s maritime domain is seen as a pointer to the changing fortunes of Chibuike Rotimi Amaechi. Amaechi had superintended the award of a security contract for securing Nigeria’s maritime assets to HLSI Firm Security and Technology an Israeli company for $195 million over a three-year period. This is equivalent of N70.2 billion at the current exchange rate. 

The Isreali company was to take over from Global West Vessel Specialists Nigeria Limited (GWVSNL), Tompolo’s company, that was the beneficiary of the contract during Jonathan’s presidency.  According to Maritime sources the minister’s plan was neither to bring the Navy into the loop nor  halt the unnecessary hemorrhaging of the economy. It was simply to substitute GWVSNL with another company which ownership will be loyal to him. The arrangement fitted an established pattern by Amaechi at the Nigerian Maritime Administration and Safety Agency (NIMASA) where he had installed Dakuku Peterside as Director General.

President Buhari terminated the controversial security contract via a memo dispatched by his Chief of Staff, Abba Kyari. The President, in the memo, directed the Attorney General of the Federation, Abubakar Malami, to terminate the contract with immediate effect. He also ordered the National Security Adviser (NSA) and the Nigerian Intelligence Agency (NIA) to investigate how the contractor obtained security clearance for the job without an end user certificate. President Buhari also ordered HLSI Security Systems and Technologies to supply items equivalent to the $50 million upfront payment it received from government.

The coming of HLSI Firm Security and Technology has characterised in even greater controversy than the arrangement it supplanted. It was shrouded in secrecy but dressed in pseudo patriotic garb. The minister claimed that Maersk Line, one of the global dominant carriers that lifts a significant part of Nigerian cargoes, was spending up to $18 million annually to escort its ships through the channels leading to Nigeria’s ports. Investigations cast doubt on the claim that the company is an Israeli company. HLSI Firm Security and Technology is was registered in Seychelles and has its headquarters in Cyprus. The unravelling of its doubtful status was the final nail on the coffin of the contract with President Buhari frowning on the misrepresentation.

It was gathered that Dakuku in a bid to retain his position at NIMASA wrote for an extended leave and routed it Directly through the NSA by passing the minister. The internal memo on reach the NSA minted it to the minister to ask why the memo was sent directly to his office without the input of the minister. Amaechi feeling g slighted sent a query through the permanent secretary to Dakuku. Dakuku it was learnt was pleading for verbal resolution of the matter for the ministry asked for a written explanation. The presidency it was gathered is now waiting for the NIMASA boss , Peterside, to make good his ambition to take another shot at Rivers State Governor’s Lodge so he can be eased out of the agency.

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