ICTN Scheme: Court strikes out FG’s suit against Donnington Nigeria Ltd

The Federal High Court Abuja Friday struck out the objection by Federal Ministry of Transport, on behalf of the Federal Government, to the suit filed by Donnington Nigeria Ltd, seeking to annul the purported award of contract for the Implementation of Advanced International Cargo Tracking Note (ICTN) Scheme in the country.

Friday’s ruling is a major setback for Nigeria in the case, in which it is accused of wrongful award of the CTN multi-billion contract.

The court had on 4th of July adopted the objections of some of the defendants in the case and adjourned to 8 November for ruling.

The defendants that asked the court to throw out the case are: The Federal Ministry of Transport, Antaser Belgium, Velocity Logistics Ltd and Sham Crystal Investments Ltd, who were listed as 5th, 6th, 7th and 8th defendants in the suit marked: FHC/ABJ/CS/2351/2022, against the Federal Govt of Nigeria and the Attorney-General of the Federation.

Antaser, Velocity, Winslow, Equal and Saham crystal  are among the companies said to have being unduly favoured in the award process after the Nigeria Government unilaterally appointed five other companies to implement the Cargo Tracking Scheme, instead of Donnington Nigeria Ltd, which had complied with all the requirements, including gaining presidential approval on 4th May 2021, for the re-introduction of the scheme. Donningnton said it had also secured other relevant approvals from the various ministries and agencies.

In their preliminary objection, the defendants challenged the competence of the plaintiff’s action on the ground that the suit is “an abuse of court process” and therefore the court lacks jurisdiction to entertain the matter.

The plaintiff however opposed all the notices of preliminary objection by the defendants and adopted all its processes.

Ruling, the presiding judge, Binta Nyako dismissed the preliminary objection of the defendants for lacking in merit.

According to Justice Nyako, a single action can give rise to multiple claims.

The judge then adjourned the matter to 6th of February 2025 for hearing.

The CTN case is metamorphosing into an Achilles heel for the Nigeria Government as it has now assumed an international dimension, with Donnington foreign partners initiating international arbitration over the matter. This would further dampen the country’s already poor image plus the risk of possible foreign assets seizure if the outcome is unfavourable to the Nigerian Government.

Recall that international embarrassment following a legal debacle that led to a Chinese firm seizing properties belonging to the Federal Republic of Nigeria abroad in pursuit of a court judgement, including presidential jets and real estate properties in Liverpool, United Kingdom.

The Federal Government of Nigeria had awarded the CTN contract to Antaser Belgium, Velocity Logistics and Marine Ltd, Saham Crystal Investment Ltd, Winslow Logistics Ltd and Equal Logistics Ltd, who are listed as 6th, 7th, 8th, 9th and 10th defendants in the suit filed by Donnington Ltd.

The plaintiff, which initially got a presidential approval for the said contract, alleges that the contract was later taken from them in violation of Nigerian laws and wrongfully awarded to the 6th to 10th Defendants, without due process.

They also alleged that the beneficial owners of the the companies that got the award were top government officials, who abused their offices to corner the juicy contract, using the companies as proxies.

CHECKPOINTCHARLEY had reported that certified documents obtained from the Corporate Affairs Commission in Nigeria, show that appointees of former President Muhammadu Buhari’s Government may have used proxy companies to hijack the Cargo Tracking Scheme Contract, which triggered the legal tussle between Donnington Ltd and the Government of Nigeria.

There were also indications that the multi-billion Naira contract, was awarded without due diligence, as investigations reveal that four out of the five companies used were not registered with the Special Control Unit Against Money Laundering, SCUML of the Economic and Financial Crimes Commission EFCC, which tends to suggest that the government officials involved unduly influenced the Bureau of Public Procurement BPP, whose duty it is to carry out due diligence.

Only Velocity Nigeria Ltd was duly registered, according to checks. The four others companies, which were not endorsed by SCUML, as required, are Antasar Nigeria Ltd, Equal Logistics Ltd, Winslow Logistics Ltd and Sahams Crystal Investment Ltd.

This was confirmed by the Economic and Financial Crimes Commission in a letter with ref : EFCC/SCUML/CE/TA/VOL.1/093 to solicitors of Donnington Nigeria Ltd, which was dated 30th March 2023.

It was in response to their inquiry after they had gone to court to challenge the alleged sham award of the said CTN Contract.

Just recently, the Minister of Blue and Marine Economy, Gboyega Oyetola, admitted that the cargo tracking agreement entered into by the federal government regarding the International Cargo Tracking Notes, ICTN, was signed in error.

The minister confessed this while being questioned by a House investigative panel looking into the delay in implementing the cargo tracking project, which experts say is costing the country $500 million monthly.

The hearing, organised by the House of Representatives Committee on Shipping Exercises, Customs, Port and Harbour, and Maritime Safety, Education, and Administration, is probing the non-implementation of the contract.

Mr Oyetola, who was represented by Babatunde Sule, a director in the Ministry of Blue and Marine Economy, justified the delay, said the process approved by the Federal Executive Council, FEC, was flawed.

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