Will Nigeria’s Federal Government flout court orders on award of $60m cargo tracking contract?

Whether the Federal Government will spurn an order of a Federal High Court restraining parties from taking further steps with regards to the award of the disputed 60million dollars International Cargo Tracking Note (ICTN) contract initiated by the immediate past Minister of Transportation, Rotimi Amaechi is one question that will unravel in a matter of days.

This $60 million question is sequel to the leakage of a memorandum to be presented before the Federal Executive Council (FEC) in two days’ time.

A Federal High Court in Abuja had 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 issue of the contract will be tabled before the weekly Federal Executive Council FEC meeting slated for this Wednesday for possible approval and award.

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

It reads in part: “The purpose of this memorandum is to seek the consideration and approval of the Federal Executive Council (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 the sum sixty million dollars (US$60,000,000) to be funded 100% 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: 7per 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) is concerned that Amaechi may still be working behind the scene to have the contract process concluded while their suit is 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 suit wherein the plaintiff is praying the court to void the selection of Medtech and Rozi, are the Bureau of Public Procurement (BPP) and the Attorney General of the Federation (AGF).

During a recent hearing in the case, counsel to the plaintiff, Abdulhakeem Mustapha (SAN) accused Amaechi of being in contempt,  noting that he has taken some fundamental steps in respect of the contract award despite a pending order for maintenance of status quo issued on January 22, 2022.

In view of Mustapha’s complaint, Justice Donatus Okorowo decided to first tackle the issue of alleged contempt and ordered parties to file necessary processes.

Though the case was transferred to another judge, Justice Ahmed Mohammed for hearing during the court’s last Easter holiday on Amaechi’s request, it has now been returned to Justice Okorowo who has scheduled hearing for later this month.