MONDAYBUSINESS ECONOMIC INSIGHT

Members of the Maritime Workers Union of Nigeria (MWUN) yesterday vowed to shut down the operations of Saipem in Nigeria over the company’s alleged indebtedness running into more than $29 million (N10.6 billion) for various services at the port.

Saipem is said to owe the Nigerian Ports Authority (NPA) $19.3 million (N6.9 billion) for pilotage services and also owes dockworkers, who are members of MWUN, through their stevedoring contractor, Agwut A. International Ltd, more than $10.4 million (N3.7 billion) for accumulated stevedoring services.

President-General of MWUN, Comrade Adewale Adeyanju disclosed this in Lagos weekend while addressing some of the problems confronting members of the union.

The Executive Director, Marine and Operations of NPA, Dr. Sokonte Davies confirmed the company’s huge debts in a letter dated November 15, 2017.

In the letter with reference number HQ/ED/ M&O/OP/1130 addressed to the Managing Director of Saipem Contracting Nigeria Ltd, Davies said the huge indebtedness and Saipem’s lackluster attitude to meeting its financial obligations for the pilotage and stevedoring services is capable of stoking industrial crisis in the port.

Davies stated in the letter: “We are constrained to once more draw your attention to the looming industrial crisis you are stoking by the refusal of your company to pay outstanding stevedoring claims to Messrs Agwut A. International Ltd.”