Following recent refusal of entry to the free zone of Samsung Heavy Industries Nigeria (SHI) staffs, the management of Lagos Deep Offshore Logistics, LADOL, broke silence on reasons for such action, Vanguard writes. LADOL explained that the action to deny entry of SHI was in pursuance to the company’s gross negligence and total insubordination to the Nigeria local content laws and other regulatory requirements respectively. Recall that SHI operates a fabrication and integration yard (SHI-MCI yard) in LADOL free zone, which was used to integrate the Egina Floating Production Storage Offloading (FPSO) vessel, which has sailed away to the 200,000 barrels per day Egina oilfield.
Speaking over the weekend to journalist, LADOL, stated that, “As a responsible Nigerian company, Ladol has put public duty and national interest ahead of its private interests and concerns for some time, with respect to the Egina project and the actions of Samsung. “However, LADOL now has no choice but to bring to the fore issues that have arisen due to the actions of Samsung.” Background The company noted that, “Samsung’s dealings in Nigeria in the past four years have been fraught with mischief and reckless disregard for all stakeholders: Ladol as business partners; Nigerian regulators; Nigerian workers and citizens. Samsung has brazenly and persistently flouted Nigerian laws and breached contracts it duly signed with Ladol and its affiliates.
“These breaches include but are not limited to: refusal to abide by Conditions of Service for Nigerian Staff and abuse of Nigerian workers, violating procedures of the Nigerian Customs Service, violation of Nigerian Immigration Procedures, breaches of Nigerian Content Development and Monitoring Board regulations, refusal to Remit Statutory Tariffs to the Federal Government despite several demands from the Nigerian Export Processing Zone Authority. “Others are, sponsoring the publication of malicious and false information about Nigerian Government Agencies and the business climate in Nigeria, thereby denigrating the Ease of Doing Business regimen in Nigeria, persistent failure to Comply with Rules and regulations of the Free Zone, concealing sums of money provided for in the Head Contract from Ladol, their local content partner.”
Also, the company explained that the SHI, has been demanding huge unconscionable variations from their client (Total/NNPC Joint Venture) and by extension from the Nigerian people, adding that, “SHI has been involved in exclusion of their Nigerian content partner from operational activities, and thereby refusing to transfer technology, blatant repudiation of major contractual terms in agreements duly signed with Ladol.” The company explained that the inescapable conclusions, due to the frequency and seriousness of these infractions are that “Samsung’s activities threaten the safety and peace of the Free Zone and of other responsible Nigerian and foreign Enterprises doing legitimate business within the zone. “Samsung is committed to operating in a manner that brazenly defies our Nigerian regulators, flouts our laws, maltreats Nigerian workers and sabotages the economy of our dear country.
As a result of Samsung’s recidivist operational practices and breaches, the following have now occurred: Samsung failed to meet the minimum standard required to qualify for an Operating License in a Free Zone, their license has therefore expired without renewal. “Samsung’s Sublease Agreement has been duly terminated. Ladol has filed a court action (Suit No FHC/L/CS/1459/2018) against Samsung related to their fraudulent activities in Nigeria.”
The company, howeveer, noted that “Ladol as a Nigerian company is resolute about enforcing its rights and protecting our country from companies and contractors that flagrantly disobey our laws and disrespect their local partners.” Meanwhile, Vanguard investigation reveals that SHI will lose over $300 million of investments if sacked from the island as it will be difficult for the Korean firm to remove the fixed assets in the yard and to evacuate the fixed assets would require dredging of the river, which will gulp millions of dollars.
