Senate committee shocked by non-remittance of ports development levy

Dele Aderibigbe, Lagos
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THE Senate Committee on public Accounts has expressed its disenchantment with the withholding of ports development levy (pDL) by the federal ministry of finance, noting that some of the observable rot in the ports system might not be unconnected with the non remittance of the statutory seven per cent levy to the Nigerian ports Authority (NpA).

However, a member of the committee, Senator Abubakar Umar Argungu, has questioned the legality of further collection of the seven per cent port development levy, arguing that it was indeed, an additional burden to importers, which when ultimately passed to the Nigerian consumers only further worsens their dwindling purchasing power.

The beneficiaries of the levy were the NpA which receives four per cent of the levy, the Nigerian Shippers Council (NSC), two per cent; and the Raw Materials Research Council, one per cent.

Grilling the NpA managing director in respect of some of the facilities at the resumed public hearing of the committee last week in Abuja, the members had insisted that certain lacking facilities ought to be in place, a situation which prompted Mallam Abdul Salam Mohamed to explain that his organisation was doing its best, but for the non availability of the levy.

particularly taken aback was the committee chairman, Senator Ahmed Lawan Ibrahim, when he learnt that the NpA was denied every kobo from the port development surcharge account beginning from March 2007 till date, even though the levy collection from stakeholders had remained a daily exercise.

Collaborating an earlier submission of the Acting Comptroller General of Customs, Dr. Bernard Nwadialor, the managing director explained that it was the federal ministry of finance which determines the seven per cent and the amount disbursed to the beneficiaries.

He also identified projects which ought to be funded by monies from the levy, noting that the disbursement of the levy to the beneficiaries which ought to be done quarterly had since been suspended and expressed regret that this had affected the execution of such projects.

Responding to a question, Abdul Salam Mohammed explained that though the port Act gave powers to the management to spend its surplus funds of the proceeding year on purpose-related activities, no such surplus had, however, existed, let alone channeling such funds outside the mandate of the authority.

Reiterating an earlier submission of the NpA’s Executive Director, Finance, Mr. Adetola Atekoja; the managing director told the Senate committee that the NpA, last year, contributed the sum of 20 million US Dollars to the federation account from its internally regenerated revenue, reiterating that the management was determined to make the remittance quarterly, this fiscal year.

Meanwhile, the organisation has indicated that it has no funds in any of the distressed banks. Responding to a question, Mr. Atekoja stated that the Authority did not have any substantial amount in the distressed banks, adding that most of what was actually trapped in the affected banks have since been recovered.