How NEMA paid N400 million demurrage to clear N414.8 million Chinese rice donation

How NEMA paid N400 million demurrage to clear N414.8 million Chinese rice donation

The National Emergency Management Agency (NEMA) paid a whopping sum of N400 million in demurrage to clear Ñ414 million rice donated by the Chinese government to Internally Displaced Persons (IDPs)  in the North East, the Director General of the agency Mustapha Yunusa Maihaja,  has said.

Documents submitted to the committee by the Ministry of Finance dated July 20, 2017 indicates that the total quantity of the rice is 6,779 metric tonnes valued at N414.8 million while the Ministry of Agriculture paid another sum of N272.5 million as duty.

However, the figure of N400 million excludes the cost of transporting the rice from the ports to the warehouses of the agency, while about half of the goods are still at the ports accumulating more demurrage.

The House of Representatives Committee on Emergency and Disaster Preparedness expressed dismay over the inefficient handling of the rice donations adding that the officials in charge did not discharge their functions well, leading to unnecessary spending of taxpayers’ money.

The lawmakers were reacting to the presentations made by government agencies during its investigative hearing on breach of public trust by the National Emergency Management Agency on Wednesday.

While making a presentation before the committee, representative of the Comptroller General of Nigeria Customs Service,  Assistant Comptroller General Ekekezie Kaycee, said three batches of the Chinese rice arrived at the Nigerian port on the 9th of May, the second,  15th August, and the last, 11th September,  2017 respectively.

She added that the value of the rice, which came in 151 containers in total, as stated on the bill of lading are as follows: 7, 405, 222 Yuan, 9, 219, 650 million Yuan and 11, 247, 973 Yuan, at an exchange rate of N46.245 to one Yuan.

Altogether, she informed the committee, 3, 779 metric tonnes of the rice have been cleared, leaving a balance of 3000 metric tonnes.

Similarly, the representative of the Minister of Budget and National Planning, Mr Iloma Simon, said while making a presentation before the committee that they procured waivers for the rice from the Miinistry of Finance three separate times when the goods arrived at the port. His Agriculture Ministry counterpart said the ministry paid for the clearing of the rice and provided warehouses for storage but is yet to receive any consignment.

In his summission, the Director-General of NEMA, Engr Mustapha Maihaja, said the agency could only start clearing when it received the bill of lading six months later.

He added that due to the emergency situation, the agency relied on Section 43 of its establishment Act and engaged Global View Logistics and Baltic Air and Maritime Services without following due process on procurement. The first clearance was done in January, 2018. He also added that the 110 containers of rice cleared have been taken to Borno and Yola.

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