TheNewsGuru

Tag: INTELS

  • Intels reacts to Atiku’s claim that Buhari caused divestment

    Intels reacts to Atiku’s claim that Buhari caused divestment

    Intels Nigeria Ltd., an oil and gas logistics company, has said its business has not been hindered by political influences from the present government.

    The company made the clarification in a statement it issued on Tuesday, in Lagos.

    TheNewsGuru.com, TNG reports that the company was co-founded by former Vice President, Atiku Abubakar, late Shehu Yar’Adua and Italian-Nigerian Gabriele Volpi.

    However, Atiku Abubakar on Monday confirmed divesting from the company but blamed the President Muhammadu Buhari led administration of trying to destroy the company, because of political differences.

    It will also be recalled that Intels on Jan 4 announced that it had severed ties with Atiku after the latter sold his interests in Intels’ parent company, Orlean Invest Holding.

    The transactions were executed through Guernsey Trust, in deals that began in December 2018 and concluded in 2020.

    The spokesman for Intels Nigeria Limited–Orlean Invest Group, Tommaso Ruffinoni, said the company’s decisions had been devoid of political considerations as it had always operated according to market logic.

    “Intels Nigeria Limited and its parent company, Orlean Invest Holding, in relation to some statements that appeared in the press yesterday and today, categorically deny that its business has at some time been hindered by political influences from the current government.

    “The company has always operated according to market logic, thanks to its history and commitment to the development of the Nigerian economy in the oil and gas logistics sector.

    “The ongoing contradictions are part of a natural commercial divergence, which will hopefully be resolved, as in the past, by a new approach, in the interest of all the parties, also according to the social role that Intels plays in the country.

  • Atiku divests from Intels, blames Buhari

    Atiku divests from Intels, blames Buhari

    Former Vice-President Atiku Abubakar said he has been selling his shares in Integrated Logistics Services Nigeria Limited (Intels), which he co-founded with late Shehu Yar’Adua and Italian-Nigerian Gabriele Volpi.

    Although Atiku did not specify the number of shares sold, he said he has been redirecting the proceeds into other businesses.

    He accused the Buhari administration of trying to destroy the company, because of political differences.

    “Yes, he has sold his shares in Intels and redirected his investment to other sectors of the economy for returns and creation of jobs”, said Paul Ibe, his media adviser.

    The share sales assumed greater urgency in the last five years, a period which coincides with Buhari’s ascension since May 2015.

    “This Government has been preoccupied with destroying a legitimate business that was employing thousands of Nigerians because of politics”, Atiku said.

    “There should be a marked difference between Politics and Business”, he said.

  • INTELS sacks 700 workers without benefits in Rivers

    INTELS sacks 700 workers without benefits in Rivers

    Workers of Intels Nigeria Limited on Friday received the shock of their lives when the management of the company formally sacked 700 of them without benefits.

    The aggrieved sacked workers, who began the protest on Tuesday said they would only stop their demonstrations if the firm paid their benefits.

    The protesters and members of the Associated Maritime Services (AMS) barricaded the entrance to the firm’s plant yard displaying placards.

    Some of the placards contained messages such as ‘Kindly do the Needful pay us our Redundancy Money,’ ‘Every Labourer Deserves His Wages, Pay us our Money,’ ‘Please INTELS do the Needful, pay us Don’t Send us home Empty Handed We Were Your Workers’.

    The President of AMS Union Staff Association, Intels, Sunday Atakpo, urged the management of the firm to pay the sacked workers their redundancy money.

    Atakpo said: “AMS is the major part of Intels group. We are here because over 700 of our men were placed on redundancy without following the condition of service.

    “They had tried this three months ago and we blocked the road and protested and we were called for negotiation. While the discussions were on, they went round and terminated the people on the 8 of December when discussions have not concluded and benefits of the people have not been paid.

    “Since 1998, Intels and AMS have been having single negotiations, they are the same people. When we started this negotiation, we sat for about seven times and they said INTELS and AMS have been separated, we agreed. They went into discussions with INTELS 68 workers who were dropped and their benefits were paid to them.

    “When it came to AMS, they brought in about 633 redundant staffs and their benefits were not paid to them. And we are asking where in this world will you work and will not be paid. These are staff who have worked for you for over 25 years and you want to lay them off without benefits.

    “What they are doing is against any known labour law. Let them pay our people and we will leave them alone. You have not paid them off and you are chasing them out of the company, it is shameful and unexpected.”

    Also, Tunde Bolaji, the Chairman of Junior Staff INTELS AMS district of the Maritime Workers Union of Nigeria, appealed to the state Governor, Cheif Nyesom Wike, the Federal Government and Labour Organisations to compel INTELS to clear their outstanding benefits before laying them off.

    Efforts to reach Intels management were unsuccessful but it was gathered that the protesters were not Intels employees but members of staff of contractual firms engaged by Intels.

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  • From NICOTES To Intels: The Untold Story, By Kayode Ariyo

    By Kayode Ariyo

    Since the beginning of the recent face-off between the Federal Government and the Integrated Services Limited (Intels) which culminated in the contract termination/cancellation episode, I knew those who follow me on my social media handles and know the positions I have often taking in defense of Atiku Abubakar, former Vice President and part-owner of Intels, will long to hear what I have to say on the developing story.

    Because of this, and also for posterity’s sake, I will say the few truths I know about INTELS – the company, the owners and some of the politics surrounding it, in order to help commentators and followers of the never-ending Nigerian drama to make an informed opinion about the situation. I must also add quickly, that the opinions that I will express are from my personal findings through archival investigations and interviews with people who have worked with the company for a couple of years.

     

    1st Era

    INTELS, known then as NICOTES (Nigeria Container Services) was founded in the early 1980s by an Italian (from Genoa, Italy), who is now a nationalized Nigerian – Gabrielle Volpi and Atiku Abubakar. When they started, Atiku was still in the Nigerian Customs, so he could not be involved in the day to day activities of the company. Both Volpi and Atiku started off Intels operations from a container office at Apapa Port, Lagos. The company was simply and strictly into oil servicing on a small scale logistics.

    As fate would have it, the company grew in bounds and finances, especially because it was structured around oil – the gold of the 80s. It is instructive to add that neither Atiku nor Volpi had an oil block then, now or ever. What they do is to use the technical capacity of Intels to offer their services to those who have oil wells but who do not have the expertise, finances and man power to drill, transport or even manage it. This is exactly what INTELS is about.

    In the late 80s (between 1988 and 1989) INTELS, still known as NICOTES had grown so big that Atiku was already tired of being tied down in the Nigerian Customs Service rather than having the freedom to live like a wealthy man that he was and spend his money the way he wanted. This was why, when in 1989, Gen Ibrahim Babangida refused to promote Atiku Abubakar to the post of Controller General of Customs (citing the fact that Alh. Bamanga Tukur cannot head the Nigerian Ports Authority (NPA); Murtala Nyako head the Navy and Atiku Abubakar would head the Customs, when all were from the same Gongola State – now Adamawa and Taraba states. Atiku thus decided to resign rather than waste his time missing out in Customs and also missing out in expanding his network in Nigeria as a private citizen.

    Before Atiku left the Customs, NICOTES (INTELS) had already become a cash spinning enterprise. It was so big and lucrative that Atiku and Volpi, with an out-of-this-world confidence, were able to take the risk of obtaining a bank loan in the sum of Four Hundred million Naira to expand the company. This was what prompted Gabrielle Volpi, an Italian who had studied the African business environment to suggest that they should invite some big people (in the Nigerian parlance) into the business. He said they would need influential Nigerians on the board so that a government which did not know when they were growing the business would not just come and seize it as it is usual practice in Africa. Atiku, as the Nigerian partner was the one who had to look for the big Nigerians to be brought in.

     

    2nd Era

    The new INTELS (still NICOTES), began after Atiku’s retirement from the Customs. This new one had Gabrielle Volpi, Atiku Abubakar, late Gen Shehu Yar’Adua, HRH Ado Bayero (the late Emir of Kano) and some other notable Nigerians as directors. A first class General, a first class King etc were brought in to secure and solidify the company. Volpi believed it would be very difficult for any government to seize any business that belonged to these type of Nigerians. I must also say it here that the first dividend paid to Gen Shehu Yar’Adua (Atiku Abubakar’s political leader and mentor) was so huge that he had to invite Atiku and asked him if they were dealing in drugs. Atiku laughed this off, and explained the business to him. With this, it is clear that Atiku Abubakar is not the only owner of INTELS. In fact, he is not even the major shareholder since most of his original shares were distributed to the new entrants from Nigeria. How anyone would call Atiku a greedy man still beats me. The unprecedented financial strength that Atiku was able to give Shehu Yar’Adua was the reason why Atiku rose so fast in Shehu Yar’Adua’s movement – Patriotic Front (PF) and later Peoples Democratic Movement (PDM); such that in 4 years he had already overtaken people he met in politics. If you recall in 1993, when IBB banned Yar’Adua and some first class politicians from contesting elections, it was Atiku that Yar’Adua presented for the SDP primaries, before Kingibe chose to ignore the party leader’s directives and thus divided the votes which made MKO, who was also in SDP, but not from PDM to win the primaries.

     

    Abacha Years

     

    God’s ways are not always our ways. During Abacha’s years, Atiku Abubakar was part of the few rich Nigerians who refused to support Abacha till the very end. He also fought Abacha with his resources. But with all of Gabrielle Volpi’s permutations and plans, Abacha ended up arresting Shehu Yar’Adua, Intels first class General; chased Atiku, the young billionaire out of Nigeria, and seized NICOTES – that company that Volpi had given a first class protection. Abacha did the unthinkable. He seized it. He did not only arrest Yar’Adua the first class General and the first trans-Nigerian politician, he even arrested Obasanjo, a bigger General. NICOTES (Intels) stopped making profits, and almost died. Abacha was never really about the business. He had more money from the Nigerian Government anyway. He only seized it to cripple the politicians and the pro-democracy folks.

     

    The Rebirth

     

    In 1998, when Abdulsalami Abubakar became the Head of State, after the death of General Sani Abacha, he returned NICOTES back to the original owners, and NICOTES was renamed INTELS. Note: Intels was returned before Atiku became the VP. In fact, even before he became the Governor elect for Adamawa state.

     

    The Cancelled NPA Contract

     

    The contract was signed in 2007 during President Umaru Yar’Adua’s tenure. There was no way Obasanjo would have signed such contract for Atiku during their turbulent and eventful 2nd term. It is also instructive to know that by 2007, the Shehu Yar’Adua’s shares had been transferred to the Yar’Adua family, and the family now had Umaru Yar’Adua (Shehu’s younger brother) as scion. Signing the 2007 contract may well not be through the efforts of Atiku Abubakar, but that of any of HRH Ado Bayero, Umaru Yar’Adua or even Volpi.

     

    Ironically, this contract was there all through the President Jonathan years, when Atiku faced him in the PDP primaries, and when Atiku and some others left PDP for him. Jonathan never cancelled it. You may call it stupidity, weakness, statesmanship or whatever, but the truth remains that Jonathan was good enough to separate politics from business.

     

    Even though the NPA contracts have been cancelled, but I can tell you that the best periods for INTELS were not the NPA contract years. I believe INTELS should find their old rhythm and remember how they used to survive. Buhari may have cancelled their contract, and he probably did it for political reasons, but he did not seize the company and he didn’t seize their license from operating as a logistics company. If indeed Buhari is targeting Atiku financial base because of 2019, then we need to ask Buhari himself how much he had in 2015, before he was able to win against an incumbent President. Atiku has always contested from the position of strength and money, and has been failing. Maybe it is now that he would be the underdog that Almighty God will manifest in his life. The long and short narrative about this debacle is that the Buhari camp, just like Lord Voldermort did in The Harry Potter series, has effectively MARKED Alhaji Atiku Abubakar, the Waziri Adamawa as a formidable opponent for President Muhammadu Buhari and a potential next President of the Federal Republic of Nigeria.

     

    Ariyo can be reached via his Facebook handle: Kayode Ariyo

  • We won’t rush to court over NPA’s cancellation of contracts – Intels

    The management of Intels Nigeria Limited on Tuesday said that it will find an amicable resolution between it and the Nigerian Ports Authority, NPA, rather than resort to court over the recently cancelled vessel Pilotage service contract by NPA,

    While giving an update on the matter, Mr. Mike Epelle, General Manager Legal, said that as a matter of policy, they would rather explore an amicable solution, stressing: “We don’t want to rush to court.”

    On the TSA issue, Epelle said that Intels had not refused into the Treasury Single Account, explaining that it did want its commission to be paid into the account.

    He further explained that Intels was ready to pay NPA’s dues from the collection of pilotage service into the TSA after its deduction would have been made, a suggestion NPA objected to insisting to have all collection paid and after reconciliation, Intels will receive its commission from port authority.

    He also said that in the agreement, there clauses for dispute resolution adding that NPA did not follow the mechanism before terminating the contract.

    He said “We could pay into TSA but not the manner NPA wanted, we want to keep our commission and pay what is due to NPA.

    “We told NPA to do TSA that is objective and applicable.”

    He explained that before Intels got the contract, NPA was making a paltry sum of $6.5million annually, after Intels took it over, it made over $200million in its first year adding that in another year, it made $210million.

    “Before we took over the contract of pilotage services, the government of Nigeria was losing billions of Naira as a lot of shipper owner evaded the payment of these dues and levies.

    “The contract entitles us to monitor the movement of vessels that come and Sail out of Nigeria, as vessels move in and out of the channels, they are expected to certain dues and levies.

    “When NPA was doing it, they were not efficient and government was losing money.”

    Epelle also faulted the interpretation of the contract by the Attorney General of the contract noting that the Attorney General does not have the authority to direct NPA to cancel the as a court of law has such authority.

    TheNewsGuru.com reports that the Managing Director of NPA, Ms Hadiza Usman had on Monday maintained that the boats pilotage monitoring and supervision contract with INTELS remains terminated.

    The NPA boss told newsmen on Monday in Lagos that the contract was terminated on the advice of the Attorney-General of the Federation (AGF) and Minister of Justice, Malam Abubakar Malami.

    According to her, the legal advice was contained in an AGF’s letter dated Sept. 27, 2017, which was a response to NPA’s May 31, 2017 letter in which it sought clarity on the matter.

    Usman said that she had raised letters and held several meetings with INTELS management to comply with the Federal Government’s directive on the Treasury Single Account (TSA) since she assumed office 15 months ago.

    “They (INTELS) maintained their stand not to make payment to NPA. They want to deduct 28 percent commission and other costs.

    “NPA says a TSA account has been opened and that at the end of the month, there will be reconciliation of accounts but INTELS refused.

    “Will I spend 15 months talking to a company to comply with the constitution of the country?” she asked.

    Usman explained that all further attempts by the NPA to get the company obey the payment directive was met with various excuses.

  • No going back on termination of NPA’s pilotage contract with INTELS – MD

    The Nigerian Ports Authority (NPA) boats pilotage monitoring and supervision contract with INTELS Nigeria Limited remains terminated, the authority’s Chief Executive, Hadiza Usman, has said.

    The NPA boss told newsmen on Monday in Lagos that the contract was terminated on the advice of the Attorney-General of the Federation (AGF) and Minster of Justice, Malam Abubakar Malami.

    According to her, the legal advice was contained in an AGF’s letter dated Sept. 27, 2017, which was a response to NPA’s May 31, 2017 letter in which it sought clarity on the matter.

    Usman said that she had raised letters and held several meetings with INTELS management to comply with the Federal Government’s directive on the Treasury Single Account (TSA) since she assumed office 15 months ago.

    “They (INTELS) maintained their stand not to make payment to NPA. They want to deduct 28 per cent commission and other costs.

    “NPA says a TSA account has been opened and that at the end of the month, there will be reconciliation of accounts but INTELS refused.

    “Will I spend 15 months talking to a company to comply with the constitution of the country?” she asked.

    Usman explained that all further attempts by the NPA to get the company obey the payment directive was met with various excuses.

    She said the NPA management would proceed on a transitional arrangement to engage another firm.

    On fear of job losses, the managing director said that the workers would be absorbed by any entity that took up the job.

    On repair of port access roads, Usman said she had sent so many letters to the Minister of Power, Works and Housing, Mr Babatunde Fashola, to provide clarity on budgetary provisions for the port access roads.

    Similarly, she said that the bad state of Ikom Bridge in Cross River had not allowed containers to move to the northern part of the country.

    The Managing Director, however, said that it was not under the purview of the NPA to provide N1.8 billion for the rehabilitation of port access roads.

    On the controversial contract on buoys, she said that the NPA management had discovered concerned officers that misguided the authority on the contract.

    “We need buoys. We are going to buy more buoys.

    “We hope that the controversy will be resolved to enable the firm – Marina Energy- to continue,’’ she said.

     

    NAN

  • De-categorizing port terminals will cause loss of government revenue – INTELS

    . . . Says NPA’s action violates port concession agreement

    Intels Nigeria Limited has said the decision by the Nigerian Ports Authority (NPA) to de-categorize port terminals in the country will lead to dearth in revenue accruing to the Federal Government from the ports.

    In its Witness Statement on Oath filed at the Federal High Court Abuja in a case instituted by the company against NPA and four others, a Senior Legal Manager of INTELS Nigeria Limited, Mr. Dominic Onwuchekwa, stated that the proposed de-categorisation of the terminals will not only jeopardise the prospect of the Plaintiff recovering its investments under the concession agreement signed with the Federal Government, but that it will also undermine the commitments made to its lenders.

    “In addition, the de-categorization will lead to a situation whereby all terminals will charge the lower fee of $1.2 per ton (even for oil and gas cargoes for which $5.83 per ton should be paid) in order to attract patronage from port users, but on the other hand short-changing the government itself and the people of Nigeria,” Onwuchekwa stated in the Witness Statement on Oath.

    He further averred that in discharging its obligations in accordance with the terms and conditions of the various Lease Agreements (including the Concession) with the Federal Government, INTELS expended huge sums of money in upgrading port facilities and building infrastructures as well as developing specialized oil and gas designated terminals based on the need and requirements of the oil and gas industry world-wide.

    “Conservatively, the Plaintiff has, thus far, expended over USD2 billion out of its own resources without amortization in various projects and has budgeted additional USD5 billion in phased Port Terminals development and infrastructural renewal,” he stated.

    He said the huge investment by INTELS in five concessioned port terminals across the country were made in response to the Federal Government’s quest and demand for investment in port infrastructure development in Nigeria.

    “In addition to the above, the Plaintiff had also expended these huge expenses because it had entered into and executed 5 nos. Lease Agreements on the Concessioned Port Terminals which life span were 25 years with option of renewal for a further term on each terminal,” Onwuchekwa stated.

    He said INTELS’ investment in the concessioned terminals was “based on the assurances and comforts from the 1st – 5th Defendants, especially the 3rd Defendant’s (NPA) categorization of Ports and Terminals, stating that the company “was persuaded into financing huge capital intensive projects for the benefits of the 1st- 5th Defendants and the people of Nigeria”.

    According to him, “this relationship was based on the understanding that the Plaintiff shall re-coup its investments from its agreements with the Defendants entered in respect of contracts at the Oil and Gas Terminal services. The dredging and the reclamation of the 95 hectares swampy area at Federal Lighter Terminal Onne is one example out of several entered into between the 3rd Defendant and Prodeco international Limited which was financed by the Plaintiff.”

    It will be recalled that Justice A.R. Mohammed of the Federal High Court, Abuja last month issued an interim order directing the Nigerian Ports Authority (NPA) and four others to maintain the status quo in a suit filed by INTELS Nigeria Limited on the de-categorization of terminals at the nation’s seaports.

    INTELS, which filed the suit number FHC/ABJ/CS/417/2017 at the Federal High Court Abuja, is, among other reliefs, asking the court to issue an order stopping NPA and other defendants including their representatives, agents or privies from implementing a proposed policy review which purports to cancel the designation of ports and terminals in Nigeria having led it into committing huge human, financial and material resources into developing five port terminals located in Calabar Terminal A, Warri Old Terminal A, Warri New Port Terminal B, Onne Port Federal Ocean Terminal A and Onne Port Federal Lighter Terminal B.

    The defendants in the suit are the Federal Government of Nigeria, Attorney General of the Federation, Nigerian Ports Authority, Bureau of Public Enterprises and the Federal Ministry of Transport.

    INTELS also asked the court to make a declaration that the five Lease Agreements it entered into and executed between the Plaintiff and the 3rd, 4th and 5th Defendants (who executed same for and on behalf of the 1st and 2nd Defendants) in respect of Warri New Terminal, Warri Old Terminal, Federal Lighter Terminal B, Calabar Terminal A and Federal Ocean Terminal A, all dated October 24, 2005 for 25 years renewable leasehold, are still subsisting.

    Other reliefs sought by the company include a declaration that the Defendants are duty-bound to honour, perform and fulfill their contractual obligations as stated in the five Lease Agreements all dated October 24, 2005 between the Plaintiff and the 3rd, 4th and 5th Defendants acting for and on behalf of the 1st and 2nd Defendants; a declaration that the Plaintiff has not in any way whatsoever and howsoever, breached, violated and or failed to perform any of its duties and obligations as stated in the five Lease Agreements entered into and executed between the Plaintiff, and the 3rd, 4th and 5th Defendants acting for and on behalf of the 1st and 2nd Defendants.