The Nigeria Customs Service has offered explanations on why it would not shut down Intercontinental Hotel over a rice importation scam.
The NCS is engaged in a running battle with some importers of rice for failing to remit charges due to the government.
One of the companies, Conti Agro Nigeria Limited, is affiliated to Milan Nigeria Limited, owners of Intercontinental Hotel.
Owing to this, there had been insinuations that Intercontinental Hotel would be shut by the NCS if Conti Agro Nigeria Limited continues to defy the order of the government to pay up its outstanding charges.
But the NCS on Saturday said it would not shut the hotel.
It said the hotel cannot be held liable for a sin committed by a company that it only associated to it based on the fact that one of the directors has interest in the defaulting company.
A statement on Saturday by the spokesman of the NCS, Wale Adeniyi, said: “Nigeria Customs Service has found it necessary to clarify its position on its on-going battle to compel defaulting rice importers pay outstanding duties owed the Federal Government of Nigeria.
“This clarification has become necessary in view of media reports that Nigeria Customs Service plans to shut down Intercontinental Hotel. The confusion was created in view of the association of its owners, Milan Nigeria Limited with one of the defaulting Importers.
“Our records have shown that Intercontinental Hotel is not indebted to the Nigeria Customs Service, and will therefore not be shut down as insinuated. It is also necessary to clarify that the defaulting importers targeted for sanctions, Conti Agro Nigeria Limited is a separate legal entity from Milan Nigeria Limited, owners of Intercontinental Hotel.
“The Management of Conti Agro has commenced engagement with the Customs to make payments of duty owed by it, and resolve the issue.”