House of Representatives Committee on Public Petitions, has ordered the Inspector-General of Police, IGP, Kayode Egbetokun to immediately compel the Mediterranean Shipping Company Nigeria Limited (MSCNL) to appear before it and respond to petition written against the company by whistleblowers under the auspices of the Citizens Whistleblowers Coalition (CWC). The committee issued the order during its sitting on Wednesday after the company failed to appear before it on two occasions. Those summoned by the committee are the Managing Director of the MSCNL, Andrew Lynch and the Deputy Managing Director, Jake Iosso. The sitting was presided over by the Deputy Chairman of the Committee, Martins Nwogu, in the absence of the committee chairman. The committee discovered that the MSCNL not only failed to honour the summons for the second time, but also refused to file a response to the petition despite being duly served through a letter to their office and through a publication in a national daily,
Lawyer to the whistleblowers, Hon. Uzoma Abonta, in his presentation to the committee, lamented the MSCNL’s attitude towards the country’s laws and institutions. Abonta urged the committee to compel the company’s appearance and to consider pushing for the revocation of the firm’s license to operate in the country it failed to heed the summon. He further appealed to the committee to extend the summons to NPA, FIRS, FCCPC, Nigerian Shippers Council, Nigerian Customs Services and other regulatory agencies in the maritime sector. In his verdict, Nwaogu cited Sections 88 and 89 of the 1999 Constitution, which grants powers of investigation to the National Assembly on any matter within Nigerian borders and procure evidence or invite any person to appear before it. The committee invoked Section 89 (c) and (d) to compel the Managing Director and Deputy Managing Director of MSC to appear before the House. The committee also ordered the Inspector-General of Police to compel them their appearances at the next hearing scheduled for July 31st. The coalition of whistleblowers had in a petition accused the shipping giant of delay in delivery of shipments, arbitrary and inconsistent charges, unfair practices and tax evasion among others.
The whistleblowers had asked the committee to investigate claims that the global firm had not been declaring its revenues accurately and had been evading paying proper taxes when its worldwide revenues were in excess of €83bn with Nigeria being its biggest market in Africa. According to the petition, “MSC’s shipping practices are often depicted by many as being oppressive and unfair to Nigerians especially as it relates to demurrage and detention charges. “MSC prides itself as the largest Container line worldwide, with over 200,000 employees and revenues in excess of €86 billion. However, a company no matter its size should have regard for the laws of the land where it generates revenue. Over the years, stakeholders in the nations Maritime industry have continued to cry out against the malpractices being perpetrated in the nations Maritime transport industry by MSC Nigeria Limited.
In May 28, 2021, Importers and clearing agents, under the auspices of Nigerian Association of Government Approved Freight Forwarders and Association of Nigerian Licensed Customs Agents, threatened to stop shipping consignments into Nigeria through MSC Shipping Line over allegations of container deposit scams allegedly being perpetuated by officials of the company in Nigeria. This of course, will affect the volume of imports into the country, with grave implication on the nations economy. MSC Nigeria Limited, allegedly, collects container deposits from freight forwarders and licensed customs agents acting on behalf of the importers, but they fail to refund the money after the container has been returned. The company collects deposits ranging from N200,000 to N400,000 on 20foot container and 40foot containers respectively”.