Against Court’s Order, FG May Approve $60m Cargo Tracking Contract

Against Court’s Order, FG May Approve $60m Cargo Tracking Contract

Alex Enumah

Indications have emerged that the federal government may go ahead with the disputed $60 million International Cargo Tracking Note (ICTN) contract initiated by the immediate past Minister of Transportation, Rotimi Amaechi against the order of a Federal High Court, Abuja.

The court presided by Justice Donatus Okorowo, had earlier issued an order restraining the former Minister from taking any further step on the contract award pending the resolution of a suit instituted against him and some others in respect of the contract.

However, a memo prepared by the Federal Ministry of Transportation indicated that the contract would be tabled before the weekly Federal Executive Council (FEC) meeting slated for this Wednesday, for possible approval and award.

The memo sighted by THISDAY yesterday, marked, EC(2022) was signed by Amaechi on April 12, 2022, but received at the office of the Permanent Secretary, Cabinet Affairs Office on April 20, 2022.

The memo was titled: “Memorandum for approval for the implementation of International Cargo Tracking Note in Nigeria through public private partnership arrangement.”

It read in part: “The purpose of this memorandum is to seek the consideration and approval of the FEC for the implementation of International Cargo Tracking Note In Nigeria by Messrs MTS Cargo & Logistics Limited through Build Operate and Transfer (BOT) Public Private Partnership arrangement at an initial capital Investment currently modelled at $60,000,000 to be funded 100 per cent through equity by the company for a concession period of 15 years.”

It added that the arrangement provides for, “a revenue sharing ratio of 92.5per cent: seven per cent in favour of the federal government represented by the Nigerian Shippers Council and Private Consortium respectively: after deduction of processing cost as well as the Full Business Case (FBC) for the project. “

The plaintiff in the suit before the Federal High Court, the Citizens Advocacy for Social and Economic Rights (CASER) was concerned that Amaechi was still working behind the scene to have the contract process concluded while the suit was pending.

CASER had in the suit marked: FHC/ABJ/CS/1587/2021, accused Amaechi of among others, of manipulating the contract award process in favour of two local and inexperienced firms – Medtech Scientific Limited and Rozi International Nigeria Limited, who are also defendants in the case.

Other defendants in the case, in which the plaintiff were praying the court to void the selection of Medtech and Rozi, are the Bureau of Public Procurement (BPP), the Attorney General of the Federation (AGF).

Related Articles