Fresh trouble for Atiku’s INTELS as OGFZA alleges rules’ violation

Orders audit, firm threatens litigation, demands payment of N550m debt

Oil and gas logistics giant and port concessionaire, INTELS Nigeria Limited (INL), is in fresh trouble as the Oil and Gas Free Zones Authority (OGFZA) has ordered a comprehensive audit of a decade of its operations (2006-2016).The development came as INTELS, a company largely owned by former Vice President Atiku Abubakar, began to feel relief from a similar rift with the Nigerian Ports Authority (NPA).
  
OGFZA, in a letter to the Managing Director of INTELS, Simone Volpi, obtained by The Guardian yesterday, said it had appointed a team of auditors to carry out the compliance audit of the embattled firm, a concessionaire of NPA, over alleged “serial violation” of the laws and regulations governing operations in the free zone.

The Managing Director of OGFZA, Umana Okon Umana, said the audit would also focus on INTELS’ refusal to submit to the inspection of its records, warehouses, and equipment imported under the zero duty regime of the free zone in compliance with the OGFZA Act.

In the letter, OGFZA also drew INTELS’ attention to the fact that its Free Zone operating licence had expired since December 31, 2016, and had not been renewed following its failure to comply with conditions precedent to the renewal.

These include the payment of any outstanding amount due to the authority, and presentation of any other documents, returns, or information which the OGFZA may require.The authority alleged that although INTELS had paid the licence renewal fee, it failed to comply with the other conditions as stipulated in section 35 (a-c) of the 2003 Oil and Gas Free Zones Regulations.

In a swift reaction, INTELS threatened legal action against Umana, for levelling “false and malicious allegations” against the company and its management, saying they were injurious to the business interest as well as reputation of INL.

INTELS also demanded the payment of outstanding debts totalling about N560 million allegedly owed it by OGFZA. These include about $1.72 million for the use of its facilities by OGFZA at various locations in Onne, Heliconia Park Estate, Aba Road Estate both in Port Harcourt, Rivers State, and Warri, Delta State. There is also the sum of $27,548.85 and another almost N245million for various services it rendered to OGFZA.

In a seven-page letter to Umana, INTELS said it was compiling the losses being suffered due to Umana’s actions both in his official and private capacities. “We have no doubt that as these are deliberate actions, you are well aware of the consequences as these are clearly crude, irresponsible and off-limits. At the appropriate time, we will initiate necessary legal measures to ventilate this grievance,” INTELS stated.

The company further accused OGFZA of seeming “to be suffering from a confused interpretation of what could be described as free zone-related activities against other port or NPA related activities.”

INTELS, however, admitted “there are a few cases of overlap, but those are easily traceable to transactions involving free zone cargoes and in those instances the role of the OGFZA is clearly defined along with aspects of the transaction for which it is entitled to charge fees. Still, such fees do not extend to the rates covered by NPA related activities.”