A major fraud inquiry is underway at the House of Representatives over a controversial concession of huge import and export clearing contract to an alleged phony firm by the federal ministry of finance, which lawmakers say stand to rip the national treasury of over $30 billion dollars.
The House, on Wednesday, authorised public hearings and broad investigations on how the huge contract was reached, setting aside public procurement stipulations as well as current national platform on import and export services.
For the next 15 to 20 years, Single Window Systems and Technology Limited, a company allegedly with no official address, will operate a new National Single Window (NSW) platform - a crucial technology-based import and export documentation services which already exists and for which the government has spent N300 billion.
In return, the firm, hurriedly set up by questionable promoters according to lawmakers well informed about the deal, will levy extra charges on importation while also collecting an unprecedented tax on exports.
Lawmakers say the job, primarily that of the Nigeria Customs Service, was given to the firm in a non-transparent process that totally breached procurement rules, and would tremendously hurt the economy.
"When we start taxing exports for our kind of economy, it will kill manufacturing and destroy jobs," said Yakubu Dogara, a member from Bauchi State, who brought the issue to the attention of the House.
In details and scope, the planned investigations may only be surpassed by the inconclusive $16 billion power probe launched by the House in 2007.
In a motion that was unanimously supported by the members, Mr Dogara, a former chairman of the House committee on customs, gave details of the purported deal to buttress a rare direct accusation of fraud and misconduct from the lawmakers to the executive arm.
The current platform in use, and backed by a national data centre, telecom and IT infrastructure, has already drawn N300 billion of federal funds spent to train Customs officers' and outsourcing to specialist firms.
Awarded in secret
While that process is to run till July 2012, the lawmakers said the federal ministry of finance awarded, in "absolute secrecy", a new concession for the same functions to a "firm not known anywhere beyond its residential office accommodation in Asokoro."
The company, which is not engaged in supplying the service in question anywhere in the world, according to the resolution of the House, is to charge one per cent Freight on Board (FOB) on imports and exports in the country.
Lawmakers said the move will promote diversion of Nigeria-bound goods to other countries over fear of charges, after which the products will later be smuggled in, resulting in loss of federal revenue.
"For years, this nation has lost a lot of money through illegal concessions and waivers and this investigation should be able to reverse that trend," said Farouk Lawan (Kano, State PDP).
The House adhoc committee for the probe is to be named later, with references to establish the terms and circumstances of the award. Officials of the ministry and the involved companies are to give testimonies.
A spokesperson of the ministry of finance could not be reached for comments at press time.
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