- Report Claims Hadiza Now Being Investigated For ‘Insubordination’
Minister of Transportation, Hon. Rotimi Amaechi, has reportedly decided to drop the allegations of unremitted operating surplus to the tune of N165billion by the Nigerian Ports Authority (NPA) under the leadership of the suspended Managing Director(MD)/Chief Executive Officer (CEO) Hadiza Bala-Usman.
An insider source from the administrative panel set up to probe the activities of the NPA reportedly made this disclosure.
According to a source quoted by the cable, the Minister has now decided to probe the embattled Bala-Usman for “insubordination” as against the earlier claim of not remitting operating surplus of N165 billion to the Consolidated Revenue Fund Account (CFR).
The New Diplomat had reported how Amaechi was said to have played a significant role in uncovering the alleged looting of N165 billion at the NPA under the watch of Bala-Usman as MD/CEO.
In addition to the allegations bordering on the N165bn unremitted funds, an insider source at the Ministry of Transportation who was quoted by the Punch further revealed that Bala-Usman also allegedly failed to remit VAT deductions running into billions of naira and in foreign currency denominations to the FIRS.
Meanwhile, the source claimed Amaechi has reportedly directed the 11-man investigative panel, inaugurated to probe Bala-Usman, to drop the allegations of unremitted operating surplus to focus on allegations bordering on “insubordination”.
The New Diplomat understands that insubordination means a direct or indirect refusal by an employee to perform a legal, ethical, and reasonable directive from a manager or supervisor when the directive has been clearly understood or acknowledged.
Speaking further, the source stated that Bala-Usman allegedly has an habit of constantly bypassing Amaechi to communicate directly with President Muhammadu Buhari.
The NPA is a government-owned enterprise which is under the Federal Ministry of Transportation, so it is expected of Amaechi to know everything going on in the NPA.
According the source, the whole saga was said to have started during the termination of the Integrated Logistics Services’ (INTELs)’ contract with the Federal Government. INTELs is owned by former Vice President Atiku Abubakar.
Bala-Usman was alleged to have bypass the minister, dealing directly with the president despite a clear reporting hierarchy.
According to the source, Buhari had decided to approve the reinstatement of the INTELs’ contract over concerns of breach of contract, however, Bala-Usman wrote to the Chief of Staff, to the President, Prof. Ibrahim Gambari, explaining the NPA’s decision to terminate the contract.
The Presidency was said to have forwarded the explanation by Bala-Usman to the Attorney-General of the Federation (AGF), Mr. Abubakar Malami (SAN), for a legal opinion, according to the source.
The source however added that Malami wrote to the president to state that the NPA was right and that no contracts were terminated or violated.
Buhari then withdrew his approval for the reinstatement of Intels’ contract and that was believed to have infuriated Amaechi who was sidelined during the decision making.
The source was quoted as saying, “We are looking at two things. One, the suspended managing director was in the habit of communicating directly with the president and bypassing the honourable minister. This is gross indiscipline and a breach of public service communication line. That is enough to get her sacked.
“Two, the minister directed her to restore all Intels’ contracts that were suspended or terminated. What she didn’t know was that the president was in the know of it. She failed to comply. This is insubordination and she is not above discipline.
“If you look at the terms of reference properly, we are to examine and investigate compliance with the communication channel as obtained in the public service. Insubordination is not a small offence.”
When asked about the N165 billion unremitted allegations, the source stated that evidence had showed that it might not be true as audits had been done on the operating surplus of NPA under the period in question.
The source also stated that if the panel decides to investigate the full details of the allegations, Amaechi might also be probe. According to the source, the Minister is in charge of about 70% of the capital projects of the NPA.
The source said, “Available evidence shows that the allegation may not be true… it is a matter of reconciliation of what the Budget Office thought should be the remittances with what the actual remittances should be.
“Since audits have been done over the years, there is obviously nothing more to that. It is not as if NPA’s monies are in private banks. Everything is with the CBN, so if there were no remittances, it is just about looking at NPA’s accounts with the CBN.”
“At NPA, any contract beyond N50 million for goods and services and N200 million for works are referred to the ministerial tenders board (MTB), which is headed by the permanent secretary of the ministry,” he said.
“If we go into probing contracts since 2016, we may end up probing the minister himself. About 70 per cent of the contracts for capital projects go to the MTB, after which the minister presents them to the federal executive council (FEC), presided over by the president himself, for approval. We will check if all the procedures were followed, but I am personally not optimistic about that. The suspended MD, from indications, is a process person.”
The New Diplomat had reported that Amaechi had written a memo addressed to Buhari, seeking his approval to demand for the audit of the yearly remittance and account of the NPA between 2016-2020.
According to the Minister, the NPA has been far short of the amount due for actual remittance between 2016-2020, which accounted for an outstanding unremitted N165billion.
However, Bala-Usman in her defense, stated that the figures of the yearly remittance arrived at by the Minister were inflated.
According to her, the basis for arriving at the operating surplus of the NPA, upon which the Budget office of the Federation (BOF) and the Federal Ministry of Transportation calculated the amount due as remittances to the federation account, was flawed and not in line with the provisions of the Fiscal Responsibility Act of 2007.
However, Amaechi, who is one of the very few ministers with direct access to Buhari since 2015, has denied allegations that he was fighting a personal war with Bala-Usman, whom he nominated for the position in 2016 after working with her in the APC Presidential Campaign Council.
