Following the recent refusal of entry to workers of the Samsung Heavy Industries Nigeria (SHI), the management of Lagos Deep Offshore Logistics, LADOL has justified the sacking of the fabrication and integration company from the free zone over expiry of operating licence.
SHI is the operator of a fabrication and integration yard (SHI-MCI yard) in the 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. The SHI-MCI yard is a joint venture between LADOL and SHI, with SHI having 70 per cent stake and LADOL 30 per cent.
The yard is the only one of its kind in Africa, designed to make Nigeria a hub of FPSO fabrication in the continent.
With the current development, it is believed that SHI will lose over $300m of investments if sacked from the island, as it will be difficult for the Korean firm to remove fixed assets in the yard.
In a statement over the weekend by the managing director of LADOL, Dr Amy Jadesinmi, she said the action was in pursuant to the Samsung’s gross misconduct to compliance of stipulated laid down rules said constant violation of procedures of the Nigeria Customs Service (NCS) and the Nigeria Immigration Procedures.
She said:“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.
“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.
Jadesimi further said that as a result of the flagrant disregard to laid down rules, SHI’s license, which has expired, will not be renewed.
She said: “Also, Samsung’s Sublease Agreement has been duly terminated and Ladol has filed a court action (Suit No FHC/L/CS/1459/2018) against Samsung.’’