Minister of Finance, Dr. Ngozi Okonjo-Iweala, yesterday informed the House of Representatives ad-hoc committee that she was not part of the team that conceived and approved the alleged N10bn single window system agreement between the Nigeria Custom Service (NCS) and the Single Windows Systems Ltd.
The House had set up the committee to investigate the circumstances leading to the approval of the agreement .
The finance minister added that the agreement was signed before her appointment and would not be in a position to speak on the propriety of the contract.
Honouring the summon of the lawmakers at the public hearing yesterday in a presentation that lasted 10 minutes, Okonjo –Iweala ,however, told the committee that she was committed to unravelling the circumstances leading to the contract in a probe supervised by her.
She said, “I am still trying to inform myself on the processes and procedures that went into signing the contract. It was signed before my time. But because government is continuous, I have brought a team from the Ministry of Finance to address all the issues the committee may require. Meanwhile, with the leave of Mr. President, I am also trying to inquire into the procedures and processes of the contract”.
She then mandated the permanent secretary in the Ministry of Finance, Danladi Kifasi, to brief the members on the procedures since he had been in charge all the while.
But in his presentation, Kifasi claimed that the award of the contract was done in the interest of the country.
Kifasi’s position was , however, opposed by the panel as several lawmakers took turns to refer to presentations by other stakeholders, who alleged that there were massive irregularities in the Single Window contract.
The Chairman of the investigative committee and Deputy Leader of the House, Hon. Leo Ogor, however, called for redirecting and asked Kifasi to focus on the issues and not defend any party.
He said, “Why are you beating round the bush? When we make a mistake, we should accept it. Don’t try to cover up here because any attempt to cover for one mistake will lead to further mistakes.”
When asked on whether the ministry of finance had the power to award such a contract without due regard to the Procurement Act, Kifase told the committee that, “The Procurement Act does not apply to contracts that have security implication”.
Kifasi, who was greeted with negative comments from the audience during his presentation, also told the lawmakers that the ministry’s respect for national security was why the bidding process for the contract was not advertised.
He said, “Given that the Single Window involves issues of national security and by virtue of the combined effect of the provisions of Sections 1(1) (2) and 12 of the Pre-shipment Inspection of Exports Act, 1996, both the Presidency, FMF and the Reconstituted Presidential Task Force on the Reform of the Nigeria Customs Service invited various vendors who made presentations on the concept with a view to selecting one”.
Speaking on allegations that the Single Window System and Technology Limited was not registered at the time the contract was processed, Kifasi said, “As far as I am concerned, the company was registered when the agreement was signed. It is left for the Corporate Affairs Commission (CAC) to ensure that any company doing business in Nigeria is properly registered. I have no reason to doubt SWST at all.”
Explaining the finance plan, Kifasi told the lawmakers that , “Single Window Systems Technology Limited (SWST) offered to finance the project at no cost to Federal Government , was selected and its proposal was presented to Mr. President, who directed the HMF to invite SWST for further deliberations on its proposal.
“Between February and March 2011, the HMF sought and obtained appropriate approval to negotiate the concession agreement for the implementation of a Nigeria Single Window project and for the company to supervise an orderly transition as the Service Providers wind down their operations on December 31, 2012 when their contract expires.
“ After due negotiations on the draft agreement, the contract Agreement between the FGN and SWST on the establishment of Single Window platform was executed by the parties on April 5, 2011.
“ Under the said Agreement , SWST is to finance the project 100% at no cost to Federal Government. The initial investment is in the sum of US $100 million for the implementation of the Single Window project.
“The project is on the basis of a joint venture Agreement whereby the MOF has a share holding of 10%, the NCS 10% and 80% is held by the SWST.
“The project is to be driven by a Registered Nigerian Company Nigeria Community Network Services Limited (NCNet) as a Joint Venture between SWST and FGN with the FGN having 20% share holding through FMF and NCS.”
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