NLNG may incur N1bn fine for local content infringement

The Nigeria Liquefied Natural Gas Limited (NLNG) may incur a fine of about N1 billion for failure to comply with the Nigerian Local Content Policy.

A Niger Delta- based company, Macobarb International Ltd, while disclosing disclosed this on Tuesday, alleging the NLNG had maliciously and fraudulently terminated its contract.

Macobarb’s Managing Director, Mr. Ogboru Shedrack, claimed the NLNG refused to follow through the contractual agreement on a security related project.

The project, Ogboru revealed was awarded in appreciation of contractor’s competence.

He noted the gas company had shown no interest in its (Macobarb’s) efforts to amicably settle the misunderstandings, despite its (NLNG’s) persistent payments failures.

He also emphasised the NLNG’s resolve on taking up the matter in a law court is only a way to kill time, considering Nigeria’s judiciary system.

Ogboru further described the development as part of efforts to thwart the President Muhammadu Buhari-led government’s fight against corruption.

“It’s a disservice to the Federal Government efforts at fighting corruption when these elements portray Nigerian Court as dumping ground to buy time by offending parties or a place where justice is for sale to highest bidder, as NLNG who violates contract they crafted, boastfully ask abused contractor to go to court. This indeed, is a disservice to Nigeria,” Ogboru stressed.

Noting that these actions were carried out without the knowledge of some personalities in the company, he claimed that few persons, in connivance with others in the NLNG legal/litigation departments, are bent on putting Nigerian contractors out of business.

Expressing optimism that justice will be served, the MD said the company is ready to go to court.

Among demands Macobarb International Limited will be making are an order of Court directing Nigeria LNG Ltd to pay to Macobarb Int’l Ltd “the sum of NGN957,676, 562.50 being the standing-by costs”, a declaration that the letter of termination of contract dated 27 November, 2015, is “ineffectual and otiose,” as well as, the payment of N200 million for damages owing to the breach and unlawful end of contract.

 

Source: The Nation

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