As Customs, Webb Fontaine ICT Contract Terminates by December, Stakeholders Kick Against Renewal

…Insists $3.2bn Modernisation Project Will Expose Ghost Workers in Customs Service

By DAPO OLAWUNI

Even though Justice Inyang Ekwo of the Federal High Court, Abuja Division had in June 2022 issued a restraining order against the $3.2billion customs modernisation project also known as e-Customs, there are indications that the last have not been heard about the contract.

This is even as stakeholders in the import and export business have called on the Federal Government not to renew the contract of Messer’s Webb Fontaine, an ICT solutions provider for the Nigeria Customs Service when it expires by December 2022.

The operators alleged that Webb Fontaine activities have increased the cost of cargo clearance at Nigerian ports, especially due to its alleged epileptic services and servers breakdowns.

Following the award of the customs modernisation project to a Chinese firm; Huawei Technologies, the stakeholders said this contract automatically subsumes that of Webb Fontaine, and the modernisation project would make custom better positioned.

Recall that in 2005, a contract was signed between the Federal Government and Messrs Webb Fontaine Consortium for the Installation, Operation, Management of Information Technology and Telecommunication Hardware and Software, Training and Power Supply Equipment, and associated services for Implementation of ASYCUDA++/World in Nigeria.

The project was to build an integrated customs information system on a Build, Own, Operate, and Transfer (BOOT) basis for a period of seven years which was subsequently extended on two occasions.

Part of the agreement that was reached was that Webb Fontaine will collect 0.6% of whatever Nigeria Custom generates monthly.

The first extension was from January 1 2013 for six months, and the second extension from June 8, 2013, indefinitely.

A World Customs Organization (WCO) trained expert on import, export and customs matters, Mr Okey Ibeke confirmed that the contract between Customs and Webb Fontaine would be terminated by December 2022.

Mr Okey who is the Managing Director of International Trade Advisory Services Limited (ITAS) was addressing journalists in Lagos recently.

He said “In the cargo clearance chain, there is a company called Webb Fontaine that provides ICT infrastructure for the customs, even the generators you see at the customs commands are being fueled and maintained by Web Fontaine, they have been doing this for more than ten years, although their contract would expire by December 2022.
Anytime you see that the customs servers are down, it is Web Fontaine that is responsible”

Meanwhile, a freight forwarding expert, Dr Segun Musa in an exclusive chat with DAILY TREND urged the Federal Government not to renew the contract with Web Fontaine, saying that the company have disappointed Nigerian Port users, and that it’s activities has added to the cost of doing business at the port.

Dr Musa who is Deputy President of National Association of Government Approved Freight Forwarders (NAGAFF) said that the customs modernisation project is being kicked against by corrupt customs officers.

“Webb Fontaine have actually failed us and they have disappointed us, we are regularly confronted with their server not working, this has caused the cost of cargo clearance to increase. Again, we are confronted with a lot of human interference on the platform of Webb Fontaine which has made us lost huge some of money

“The platform being operated by Webb Fontaine is archaic, and it does not give room for automation, in the sense that anywhere you are, you can make payments, do your data capture and release cargoes online. The world has gone digital, beyond all these analogue platforms.

“I think it is time the government jettison Webb Fontaine, since the contract have been awarded to another company. They should be looking forward to something modern.
Everything that Webb Fontaine is doing and what they are not doing, it is already inclusive in the contract of Huawei Technologies” he stated

Dr Musa, a former Lagos Governorship Aspirant said that Nigeria Customs Service could be likened to a mafia platform, whereby officers encourage the old system to continue because it is enriching few individuals.

“It is like a cash cow whereby people make billions of money that supposed to go into Federal Government coffers

“Webb Fontaine has been compromised for supporting such an unethical conduct, this is why another private company has to be engaged that would be more of rigid bilateral contract.

“All the propaganda you are reading about people kicking against the modernisation project are being sponsored by fraudulent customs officers. Many customs officers have become rich, they do not want the corrupt system to change

“So, they are the ones financing some clearing agents and some of their camp boys to discredit the Huawei Technologies and the Modernisation Project.

“I was among the people that sent proposals the federal government, initially, out proposal was for the government to privatise the customs, we insisted that officers would not lose their jobs, it is only those that are not relevant in the scheme of things that would lose their jobs, if you are relevant, they would engage you

“The customs cannot continue to carry deadwoods, almost 50 percent of the people in the customs service today are not supposed to be there, some of them were given uniforms at home, and their data picture were inputed into the system of customs, they know nothing, more than perpetuating fraudulent activities in the service, these are the people that would be jettisoned out of the system

“They are the ones causing a lot of bottlenecks, uneccessary delays in the system and frustrating it. These people are so rich, you would see customs officers that are billionaires, how much is their salaries? You would see an officer that join customs today building houses and buying cars, these are the same guys that are now sponsoring agents to discredit the Huawei project

“The project has not commenced, as one of the people that proposed this project to the government, we said that they should engage stakeholders, here they would be able to express their fears about the project.
But today, they are condemning the project even before commencement

“As far as IT is concerned in this country today, Huawei is one of the first three, if not for the problems that America has with China, Huawei was the company building platforms for America.

“Before the contracts are awarded, it passes through a lot of security checks and background checks, it’s not that you just take a contract to the President and he approves immediately.
The security concerns have been included in the MoU and Bilateral agreement.

“If you are condemning Huawei that it is a security risk because of our data, Webb Fontaine is a South African company, who told you that they have not compromised our data?
Our concerns should be more about something that would facilitate trade, ease of doing business, safe cost and transparency

“If you say that it is a waste of resources, do you know how much we are paying to Webb Fontaine?

Dr Musa told our correspondent that the court case instituted against the customs modernisation project would be vacated very soon.

According to him “Webb Fontaine cannot continue, before the expiration of their contract, the court case would have been vacated. We are also engaging the National Assembly. The people that approached the court for this injunction failed to substantiate why they are kicking against it, they only abused privileges of the Judiciary. If you look at their arguments, it holds no merit and content” he concluded.

On his part, another industry expert, Dr Eugene Nweke argued that, in view of the modernization concession of the Nigeria Customs ICT infrastructure to another foreign firm, there should be a detailed explanation with regards to the present state of the Webb Fontain Contract with the Government through the FMOF dated 3rd July, 1997.

“The idea behind this question stems from the fact that, it is the same Finance Ministry that is at the center of contract supervision on behalf of the government, and noticeably, it is also on record that, the Optic Server hosted in the orbit for the Customs satellite supports was a very narrow tunnel, which had impeded the operational outputs, hence, the challenges raised by the Customs and the incessant server breakdown experienced at the operational zone”

On his part, President of Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) Otunba Frank Ogunojemite in response to inquiries by DAILY TREND said the Webb Fontaine contract is long overdue for scrapping.

“They are long overdue to go. That contract should be scrapped at expiration date.

“I suggest that Ministry of Finance should de-monopolize the service and make them pay for disruption in their services that made the freight forwarders unable to capture SGD’s and lead to huge rent

“Freight Forwarders incurred demurrage as a result of disruption in the service while Customs too were unable to generate revenue accordingly.
Web fontan sub-standard services has astronomically increased the cost of importation” Otunba Ogunojemite told DAILY TREND

The $3.2 billion e-Customs project to be financed by the Africa Finance Corporation (AFC) and managed by Huawei Technologies Limited under a 20-year concession window. When fully implemented, it is expected that it would quadruple Customs’ current N210 billion monthly revenue collection.