Posted by By Omoh Gabriel, Business Editor on
ABOUT $50 million over-charge has been uncovered by the Federal Government in the cost submitted by the various companies and agencies bidding for the implementation of destination inspection.
LAGOS - ABOUT $50 million over-charge has been uncovered by the Federal Government in the cost submitted by the various companies and agencies bidding for the implementation of destination inspection.
A report submitted to the Presidency by the Budget Monitoring and Price Intelligence Unit (Due Process Office) has indicted the UNCTAD and the three inspection companies selected to implement the project.
The implementation of the controversial Destination Inspection Scheme which was tinkered by the Federal Government in the last five years may still have to wait for some time as the Budget Monitoring and Price Intelligence Unit (BMPIU) of the Presidency has refused to issue a Due Process Certificate to the project.
Suspecting that the project might not meet the presidential mandate for the take-off of destination inspection as directed by the President, Minister of Finance, Dr. Ngozi Okonjo Iweala, informed President Olusegun Obasanjo of her fears that it did not pass the due process tests.
In a brief to the president, she said: "You will kindly recall your letter Ref.No. PRESS/99/87 of May 27, 2005, directing the Honourable Minister of Transport who is the chairman of the Destination Implementation Committee on Destination Inspection and ASYCUDA project and myself to conclude all activities for the take-off of destination inspection by July 1, 2005, at the latest.
"Mr. President may further recall that the Honourable Minister of State for Finance wrote a letter, Ref. No X/194965/PICDIA/1/2/60 of June 17, 2005, explaining the situation and effort being made to actualise your instruction. We were expecting, among others, the Due Process certificate from the Budget Monitoring and Price Intelligence Unit which has now issued a report drawing attention to certain aspects of the project which need to be further examined.
"The unit has indicated in paragraph 7 of the report that the issuance of Due Process Certificate was subject to the following: Inclusion of Jibia and Banki land post in the list of Customs officers/formation for installation of ASYCUD systems; Reconciliation of the risk management modules of each of the three scanner providers and that of ASYCUDA and renegotiation of the proposed service charge with the bidders or alternative scanner deployment plan with a view to having the a level playing field for all users and which the BMPIU stressed would result in equipment cost reductions to the tune of $50,000,000 across the board."
As a result, the minister said the scheme could not take off as earlier planned because the issues raised by the BMPIU were quite important and must be addressed to ensure a fit and proper scheme. The ministry further said the careful studies made by the department informed them that the scheme could not be dully certified.
According to the Minister of Finance, "it has become imperative to request Mr. President to graciously implore the Presidential Implementation Committee to expedite action and prevail on the Senior Assistant to the President and head of BMPIU to work on the committee in order to facilitate conclusion of whatever remains to be done in good time. The import of this letter is to intimate you of the position of things regarding the implementation of the Destination Inspection and ASYCUDA projects and seek your assistance for other organs of government to expedite action so that the project will take off with minimum delay."
The Due Process Review was done by three staff of the BMPUI including the former Head, Mrs Oby Ezekwesili and a procurement review consultant hired for the purpose.
The 15-page report was generated from an earlier recommendation of the Implementation of Destination Inspection to the presidency which had chosen three foreign companies to kick-start the scheme in July 2005.
Apart from what the Due Process report cited as serious oversights by the committee, it also observed the disparities in the contract sharing pattern which tended to give some companies undue privilege over others.
Messrs Cotecna, SGS and Globescan Systems had been pre-qualified by the Presidential Committee after a controversial bid that was earlier cancelled on the grounds of an alleged malpractice by one of the bidders which incidentally emerged winner.
They are to install scanners for the project in Nigerian ports on BOT arrangement, replacing the Pre-shipment Scheme which had ruled the country's economy efficiently in the last 28 years.