Controversy is brewing over the implementation of the $470 million National Public Security Communication System (NPSCS) by Chinese firm ZTE Corporation.
Part of the project consists of the installation of Close Circuit Television (CCTV) cameras in many parts of the Federal Capital Territory.
The NPSCS is based on the Global Open Trunking Architecture (GoTa), a new technology which provides strategic telecommunications solutions to targeted clientele.?
The project, which is funded through a $600 million credit facility obtained from EXIMBANK China, was awarded by the federal government in August 2010 and was expected to be completed in May 2011.
But due to delay in completing the contract formalities and securing the loan, the project was said to have commenced early in the year.
The vendor, ZTE Corporation, founded in 1985, is said to be a leading global provider of telecommunications equipment and network solutions and China’s largest listed telecoms equipment company. The firm has been listed as an A-share company on the Shenzhen Stock Exchange and on the Stock Exchange in Hong Kong, thus becoming the first Chinese company to hold both A and H shares.
LEADERSHIP investigations showed that the firm has deployed the GoTa technology for the strategic national security needs of several countries including Ghana, Senegal, Morocco, Kazakhstan, Mongolia, Norway and Malaysia.
Former minister of finance Olusegun Aganga led a federal government delegation to Beijing where the loan agreement with the Chinese EXIMBANK was signed in June 2010.
Former minister of police affairs, Adamu Waziri and inspector-general of police Halfiz Ringim were also part of the delegation.???
The $600 million financing portfolio for the project was secured as a soft credit line with 3 per cent interest repayable in 10 years after an initial 10 years of grace.?
LEADERSHIP learnt that the NPSCS project was conceived by the government to deal with national security challenges and emergency situations in the country.
When completed, the multi-million dollar project would create a dedicated trunk system for inter-agency communications and linkages as well as remove critical national security agencies from private network operators and service providers.
It would also provide value-added services like private and group calls, broadcasting, emergency calls and encryption.?
The secure national telecommunications network would also be used in election monitoring and verification of results as well as disaster management and control.
The scheme, which is expected to cover the 36 states of the federation, the Federal Capital Territory as well as critical national infrastructure was initiated by the late President Umaru Yar’Adua in 2008.
Yar’Adua had, during a visit to China on March 1, 2008, made a brief stop at Shangahi where he held talks with top executives of ZTE Researching and Development Center.
The outcome of the discussion culminated in the signing of a Memorandum of Understanding (MoU) between the federal government and the management of ZTE Corporation.
The government, LEADERSHIP learnt, had made a down payment of $70, 500,000 which is 15 per cent of the total contract sum and signed a Sovereign Guarantee to the tune of $399,500,000 to enable ZTE source the loan from the Chinese government.
However, the project is being piloted with the installation of solar-powered security cameras and allied security infrastructure in many parts of the Federal Capital Territory.
But it is learnt that some of the materials deployed for the critical national security infrastructure are of low quality compared to what is used in China.
A source who disclosed this in an email to LEADERSHIP also indicated that the project vendor, ZTE Corporation, also provides seamless services to U-Mobile, a major telecommunications firm in Malaysia.
According him, U-Mobile recorded a seven-hour disruption to its operation, a situation which led to the loss of several millions of dollars.?
He also indicated that the Chief Executive Officer of U-Mobile, Dr. Kaizad Heerjee, later claimed the disruption was caused by network upgrade carried out by ZTE.
The source argued that ZTE should not have allowed the downtime in U-Mobile’s network to linger up to seven hours, adding that the Chinese firm was incapable of handling Nigeria’s critical security network.
Part of the mail reads, “The fact is that ZTE Corporation, which caused the serious interruption and which failed to recover the network on time, is the same vendor being used for the Nigeria National Security Communication System.
“The quality of the system delivered so far denotes the lackluster attitude that this Chinese vendor attaches to its business endeavours.
“Some facts of this project are: ZTE Corporation was awarded the said contract, which was valued at $470 million, to build a security network in August 2010.
“The project delivery schedule was nine months after contract signing, which was May 2011. But up till now, the project is barely half-deployed.
“The quality of the project delivery is very substandard. For example, in the beginning of the project delivery, the solar panels to provide the CCTV systems, which have an attendant cost of about $USD 5000 each, were installed very close to the ground, easily attracting theft.?
“Also, some of the poles on which these solar panels are mounted have been found in certain parts of Abuja to be leaning or have completely collapsed only one month after being erected.”
While the Chinese vendor flaunts details of similar projects it carried out in other countries, it however adopted a secrecy approach in the case of Nigeria.?
Article 4 of its MoU with Nigeria specifically indicates that the terms agreed upon by the parties be kept secret.
“The terms of this MoU are agreed by both parties to be confidential. All confidential information shall not be disclosed to third parties or used for any other purpose or the possibility of a business relationship between the parties unless agreed by both parties,” the Article reads.
In one of its presentations to the federal government before the contract was awarded, the firm flaunted details of its transactions with the Ghanaian Government and also noted how the authorities of that West African state praised the quality of its products.
It is, however, not known why the same company would insist that details of its business transaction with Nigeria should be kept under wraps.
But foremost constitutional lawyer, Itse Sagay said it was wrong for the federal government to allow the Chinese firm to include a clause to keep the transaction under wraps.
He said, “It is clearly a violation of transparency and accountability. As far as I am concerned, and from the Nigerian point of view, that clause is illegal. It is contrary to the laws of this country and it is suspect even internationally.
“All these things were possible because it’s a Chinese firm that is given the contract.? There is nothing wrong about that but where it is wrong is when they try to shroud the deal in secrecy.?
“That is why it is wrong and makes the whole deal very suspicious. What is it that they want to hide? Nigerians should not have allowed such a clause to remain.?
Attempts to speak with officials of the Chinese firm failed, as our correspondents who visited the Maitama office of ZTE Corporation in Abuja were not attended to.
A mail was also sent to its Global Customer Support Center but, days after an acknowledgement that the mail had been received and forwarded to its relevant official, nothing has happened.
Part of the mail from the company reads, “Thank you for contacting ZTE. We will forward this email to relevant person.? Thanks!? Best Regards.”??
Attempts to also speak with the force public relations officer, Sola Amore, were also rebuffed as he slammed the phone on our correspondent and would not respond to a text message sent to his phone.
A similar attempt to speak with the chief press secretary to the minister of police affairs, Mr. Odaudu, failed as he would neither take calls to his mobile line nor respond to text messages sent to his phone.?
However, Senate spokesman Sen. Enyinna Abaribe told LEADERSHIP that the National Assembly was not aware of the $600 million loan secured by the federal government to finance the project.
In a text message to LEADERSHIP, he wrote, “I do not have any information regarding any loan approval sought from the National