Amaechi, NIMASA diverted $195m from CVFF to deep blue project

The House of Representatives has accused the Minister of Transportation, Rotimi Amaechi, and the Nigerian Maritime Administration and Safety Agency (NIMASA) of diverting $195 million from the Cabotage Vessel Financing Fund (CVFF) to fund the so-called deep blue project.

A member of the House of Representatives, Benjamin Kalu, while speaking at plenary on Wednesday, moved a motion calling investigation of the deep blue project, stating that it was fraught with several illegalities including “using monies diverted from the Cabotage Vessel Financing Fund” to fund it.

The CVFF was created under the Coastal and Inland Shipping Act, otherwise known as the Cabotage Act, of 2003 to promote indigenous tonnage. The Fund provides for two percent contribution by ship owners involved in the coastal and inland shipping trade in Nigeria. It was set up so that Nigerian ship owners can borrow money from the Fund at single digit interest rate to acquire vessels for Cabotage trade.

However, since its establishment more than 18 years ago and with more than USD250 million accruing into the CVFF account, no ship owner has been able to borrow from it.

On the other hand, the deep blue project, which is also known as the Integrated National Security and Waterways Protection Infrastructure in Nigeria, was commissioned by President Muhmmadu Buhari on June 11. However, piracy and other criminal activities have persisted on the nation’s internal waters and in the Gulf of Guinea, despite promises that the deep blue project would put an end to the scourge.

Kalu’s motion was titled ‘Need to investigate the deep blue contract to HSL International Limited.’

Moving the motion, Kalu recalled that the Federal Ministry of Transportation, on July 27, 2017, and on behalf of the Federal Government of Nigeria, entered into a contract known as the ‘Deep Blue’ contract of $195,300,000, an equivalent of N59,839,930,000, with a foreign private company, HLS International Limited, for the supply of certain security and surveillance equipment and systems.

According to him, HLSI was also to establish the Integrated National Coastal Surveillance and Waterways Protection Solutions, with command and control of infrastructure in the nation’s territorial waters.

He said in addition to the contract sum of $195,300,000, the Nigerian Maritime Administration and Safety Agency agreed to pay the sum of $19,530,000 to HLSI as ‘Management Training Consideration,’ while according to Appendix 4 of the agreement, both sums would be paid in monthly instalments over a period of 36 months from July 2017 to June 2020, as further payments were also made as of July 2017 to date.

Citing Section 80(3) and (4) of the Constitution, the lawmaker stated that the National Assembly is the only body constitutionally allowed to authorise any expenditure from all public funds of the Federation.

Kalu stated that the National Assembly “has neither authorised nor appropriated any monies for the Deep Blue contract or any monthly expenditure, according to the foregoing payment schedule.”