House of Reps Committee Orders IGP To Compel Mediterranean Shipping Company MD And DMD To Answer it’s Summons.
The House of Representatives Committee on Public Petitions, has ordered the Inspector General of Police to Compel the appearance of the Managing Director of Mediterranean Shipping Company Nigeria Limited, Andrew Lynch and the Deputy Managing Director, Jake Iosso, before the committee. The development, arose following the refusal of the global shipping giant to answer the summons served it and appear before the committee.
The House Committee on Public Petitions during it’s sitting on Wednesday, 2nd July, to hear the petition by the Citizens Whistleblowers Coalition against Mediterenean Shipping Company (MSC), gave the order, following persistent refusal of the shipping giant to answer it’s summons. The sitting was presided over by Hon. Martins Nwogu, the Deputy Chairman of the Committee on Public Petitions in the absence of the committee chairman.
Mediterranean Shipping not only failed to honour the summons for the second time, but also failed to file a response to the petition. The committee having established that MSC was duly served the summons through a letter to their office and also through a publication in a national daily,
Hon. Uzoma Abonta, lawyer to the Citizens Whistleblowers Coalition, in his presentation to the committee, noted that MSC has shown that it operates in flagrant disregard to Nigerian laws and institutions and urged the committee to compel MSC to appear before the parliament, failing which their license to operate in Nigeria should be suspended. He also urged the committee to extend the summons to NPA, FIRS, FCCPC, Nigerian Shippers Council, Nigerian Customs Services and other regulatory agencies in the maritime sector.
Hon. Martin Nwaogu, cited Section 88 and section 89 of the constitution, which grants powers of investigation to the national Assembly to conduct investigations on any matter within Nigerian borders and procure evidence or invite any person to appear before it.
The House Committee on Public Petitions further invoked Section 89 (C/ and (D) to compel the Managing Director and Deputy Managing Director of MSC to appear before the House. The committee also ordered the Inspector General of Police to Compel them to appear before the committee at the next date for the hearing is fixed for July 31st.
Section 88 of the Nigerian Constitution outlines the investigative powers of the National Assembly. These powers allow the National Assembly to investigate any matter within its legislative competence, including the conduct of government officials and the administration of public funds. This power is crucial for the legislature’s oversight function and its ability to hold the executive branch accountable.
Specifically, Section 88 empowers the Senate and the House of Representatives to: Investigate any matter or thing with respect to which it has power to make laws: This includes scrutinizing the implementation of existing laws and the effectiveness of government programs. Investigate the conduct of any person, authority, ministry, or government department: This allows the legislature to look into the actions of individuals and institutions involved in the execution or administration of laws or the disbursement of public funds. Investigate the disbursement or administration of public funds: This power enables the legislature to monitor how public money is spent and to ensure transparency and accountability in financial matters.
On the other hand, Section 89 of the Nigerian Constitution outlines the powers of the National Assembly regarding evidence and investigations. Specifically, it empowers the Senate, House of Representatives, or any of their committees to procure evidence, examine witnesses, summon individuals, and compel the production of documents during investigations authorized under Section 88.
Recall that a civil society group, Citizens Whistleblowers Coalition (CWC) had in a petition titled, PETITION AGAINST MEDITERRANEAN SHIPPING COMPANY NIG. LTD AND MEDITERRANEAN SHIPPING COMPANY S.A., GENEVA FOR DELAY IN DELIVERY OF THE SHIPMENTS, ARBITRARY, INCONSISTENT AND OPAQUE CHARGES, ILLEGAL DETENTION OF SHIPMENTS, EXTORTION, UNFAIR PRACTICES AND TAX EVASION.
According to the petition, MSC Shipping Nigeria, which operates out of 41 Creek Road, Apapa Quays, Lagos, (with Phone Contacts: 08058623515, 08039338833), has not been declaring their revenues accurately and also has been evading paying proper taxes, when their worldwide revenues are in excess of €83bn with Nigeria being their biggest market in Africa. MSC’s shipping practices are often depicted by many as being oppressive and unfair to Nigerians especially as it relates to demurrage and detention charges.
The petition further alleged that, MSC prides itself as the largest Container line worldwide, with over 200,000 employees and revenues in excess of €86 billion. However, a company no matter its size should have regard for the laws of the land where it generates revenue.
Over the years, stakeholders in the nations Maritime industry have continued to cry out against the malpractices being perpetrated in the nations Maritime transport industry by MSC Nigeria Limited.
In May 28, 2021, Importers and clearing agents, under the auspices of Nigerian Association of Government Approved Freight Forwarders and Association of Nigerian Licensed Customs Agents, threatened to stop shipping consignments into Nigeria through MSC Shipping Line over allegations of container deposit scams allegedly being perpetuated by officials of the company in Nigeria. This of course, will affect the volume of imports into the country, with grave implication on the nations economy.
MSC Nigeria Limited, allegedly, collects container deposits from freight forwarders and licensed customs agents acting on behalf of the importers, but they fail to refund the money after the container has been returned. The company collects deposits ranging from N200,000 to N400,000 on 20foot container and 40foot containers respectively.
Complaints against MSC Nigeria are legion. They include:
1) Excessive Shipping Charges.
On December 10, 2024, Three Nigerians, Ms. Liman Okpeku, Francis Francis and Maureen Akinbobola on behalf of themselves and other agents, petitioned MSC to the ICPC for excessive charges, alleging that MSC extort TELEX CHARGES from importers and agents. This they contend is unlawful and ought not to be collected at both Port of loading and point of discharge.
2) Rip off through Demurrage .
Importers and agents accuse MSC of perfecting the Act of Rip offs, through Demurrage caused by delibrate delays by MSC to deliver goods, for which they have been paid. Other rip offs include additional terminal and shipping bills.
3) ADAVURUKY LOGISTICS LINKS allege that they paid MSC, N264,000 as demurrage over delay caused by MSC and Terminal Operator. Also JOKBEMI NIGERIA LIMITED, allege that it paid MSC N469,000 for delays caused by MSC.
4) NAGAFF (Nigerian Association of Government Approved Freight Forwarders and ANLCA (Association of Nigerian Licensed Customs Agents) has accused MSC of collecting Container Deposits on behalf of importers but fail to refund same after the container has been returned. Applications written for refund of deposits since November 2020 has not been paid.
According to the petition, “We equally note that MSC’s actions offend several provisions of the Federal Competition and Consumer Protection Act 2018 which applies to services rendered by any company in Nigeria. For instance, MSC’s opaque handling of D & D charges and DRV rates is contrary to the provisions of section 115 of the Federal Competition and Consumer Protection Act 2018 (‘FCCPA’) which requires the disclosure of prices of any goods and services. The D & D charges and DRV rates are equally contrary to section 127 of the FCCPA which prohibits manifestly unfair, unreasonable and unfair prices.
The petition concluded that MSC is taking Nigeria and Nigerians for a ride, as it boasts that it has a monopoly of the Nigerian Shipping Industry and is therefore untouchable.
