The destination inspection companies re-engaged by the Federal Government for a N20 billion six-month contract never asked for extension of the job when it expired in December, one of them told a House of Representatives committee in Abuja yesterday.
The Federal Government on December 31 renewed the contracts to Cotecna, SGS and GlobalScan for six months, which will fetch the companies a total of N19.8 billion during the period.

Under the renewed deal, Cotecna will receive $10 million monthly, SGS $7 million and GlobalScan $4 million.

The House of Representatives committee on Customs and Excise had been investigating the initial deal when the renewal was announced. At a resumed hearing on the matter yesterday, Managing Director of SGS, Mr. Balchin Niell, said they did not seek extension of their contract at the expiration of the seven-year deal on December 31.

Under the initial contract, the companies were supposed to provide destination inspection services and also train Customs staff who should take over the job by the end of last year. Responding to a question by committee chairman Rep. Sabo Mohammed Nakudu who sought to know at whose instance the contract was extended, Mr.  Niell said: “We were ready to hand over to Customs on the 31st of December but around 1600 hours we received a letter from the Federal Ministry of Finance that we should continue on the existing conditions.” He said the company was ready to hand over to Customs when “we got a phone call we should continue and report to the legal department of the Federal Ministry of Finance in one week.”

Rep Nakudu said, “I am really shocked because it does not add up that the companies did not ask for extension yet they were given.”

For his part, deputy comptroller of Customs Mr. Bashar Y.U. said the service was not involved in the contract extension.

“We did not sit with anyone over the extension. We were ready to take over on the 31st but we received a letter on the 31st that it has been extended by six months,” he said.

Consequently, the committee resolved to invite the Finance Minister Ngozi Okonjo-Iweala to appear before it to explain the rationale behind the extension.

“The extension amounts to conceding to a breach and failure of a fundamental term of the agreement between the Federal Government and the service providers which makes it mandatory for them to train local work force to take over from them,” Nakudu said.