‘FAAN, Maevis dispute capable of discouraging foreign investments’

By Moses Ebosele The Guardian online

THE ongoing face-off between the Federal Airport Authority of Nigeria (FAAN) and its estranged concessionaire- MAEVIS Limited, is capable of discouraging genuine foreign investment in Nigeria, representatives of France based firm, RESA, has said.
Representatives of the firm, who spoke with selected capital market and business reporters in Lagos, on Monday, alleged that its software, which was handed over to Maevis, as part of the concession of some airports in Nigeria, was recently exposed to one of its competitor.
FAAN and MAEVIS are presently in court over allegations and counter allegations relating to contract executions, coupled with the alleged appointment of a new firm to take over from MAEVIS.
Representatives of RESA, who prefered to remain anonymous, explained that the software identified as crews, has allegedly been exposed to a competitor by FAAN with the alleged appointment “of a new firm without due process”.
The FAAN recently “enforced the termination of the MAEVIS concession, because the fundamental terms of the agreement were not complied with by MAEVIS,” he said.
On the other hand,  MAEVIS accused FAAN of disregarding series of court orders that directed both parties “to go to Arbitration as provided for by the Article 15 of their agreement”.
Explaining further, the source said “Government is a process. The problem in Nigeria is that every new Managing Director want to look at all previous contract all over again and in most cases call for renegotiation”.
The source said that lack of “strong  institution” has been a major factor responsible for the face-off between FAAN and MAEVIS, adding that the development, if not curtailed, was capable of sending wrong signal, especially to members of the international community.
The source explained that the contract, which was sealed in 2007 is expected to last till 2015, emphasising  that any contrary step ought to have been done legally in the interest of “security and the image of Nigeria” in the international arena”.