• Minister denies requesting armoured cars , NCAA’s officials trade blame

• Okonjo-Iweala disowns duty waiver for Coscharis Motors

• Senate probes NNPC, demands documents on chartered jets, others


DESPITE a spirited defence by the Minister of Aviation, Stella Oduah, the House of Representatives Aviation Committee probing her insisted yesterday that she violated the 2013 budgetary provision and the Procurement Act.

Besides, as part of its probe of Ministries, Departments and Agencies (MDAs), the Senate yesterday focused on the Nigerian National Petroleum Corporation (NNPC).

The Senate Committee on Petroleum Resources (Downstream) requested that NNPC submit documents relating to its 2013 budget implementation, distribution of petroleum products across the country, the number of aircraft in the corporation’s fleet, how much is spent on hiring of aircraft as well as their ownership.

Although the management of NNPC was unable to honour the invitation yesterday, the Senator Magnus Abe-led committee also requested that documented evidence of crude swap arrangement be produced next week when they would be appearing before the committee.

Two members of the House of Representatives Committee on Aviation – Jerry Manwe (Taraba, PDP) and Zakari Mohammed (Niger, PDP) – faulted the minister’s claim that the procurement of the two BMW 7 series armoured cars worth N255 million was in line with the provision of the 2013 budget.

Zakari particularly disagreed with Oduah on the basis that the approval which amounted to N546 million ran contrary to the provision of the Public Procurement Act that specifies that no minister can grant monetary approvals beyond the threshold of N100 million.

Manwe remarked that there were discrepancies in the N546 million approved by the minister and the N643 million the Nigerian Civil Aviation Authority (NCAA) eventually used to procure the entire 54 operational vehicles, including the two armoured cars.

He further reminded the minister that budgetary approval for the NCAA was N240 million, asking the minister whether it was appropriate to use bulletproof cars for security and the inspection of perimeter fencing at the nation’s airports.

The minister insisted that the expenditure was still within the 2013 budgetary provision since the payment for the vehicles was supposed to be spread within 36 months, adding that the NCAA had already paid N52 million out of its budgeted sum in line with its obligation for the BMW cars to the FBN.

Agreeing that the two armoured cars couldn’t have been used to inspect the nation’s 22 airports, the minister said the procurement of the vehicles was in order since there was no difference between a security car and an armoured vehicle.

But when pressed by Zakari whether the decision by the NCAA to obtain the loan for the procurement of vehicles from the FBN was in tandem with the Public Procurement Act, the minister absolved herself of blame on the grounds that when she granted the approval for the purchase of the armoured cars, she simply wrote in her memo to NCAA, “approve, do the needful,” implying that she expected the NCAA authorities to ensure that the entire transaction was carried out in line with due process and laid down rules.

The director-general of the NCAA, Mr. Fola Akinkuotu, exonerated himself of blame, saying that since he was not in office at the time, Mr. Joyce Nkemakolam, who was acting DG of the agency, was in a better position to explain what transpired at the time.

For about 15 minutes, Nkemakolam was nowhere to be seen but he eventually showed up at the venue of the public hearing and said he had presumed that “do the needful” meant complying with the internal rules guiding the NCAA.

Nkemakolam, who stated that the loan for the vehicles could not be terminated based on the agreement reached between the NCAA and the FBN, noted: “We were not of the mindset that we were exceeding the amount approved. We were of the mindset that we were still within the limits of the law.”

Though he said he was not privy to information on who got receipt of the BMW armoured cars from Coscharis Motors and those entitled to use them, Nkemakolam, who is the director of aerodrome services in the NCAA, disclosed that the cars could be made available to VIPs, including the aviation minister and members of the National Assembly.

In her closing remarks, the Chairman of the committee, Mrs. Nkiruka Onyejiocha, insisted that there was budgetary approval for the procurement of 25 vehicles amounting N240 million as against the conflicting figures of 51, 54 and 56 operational vehicles procured by the NCAA at N643 million.

She assured that the finding of her committee would be made known within the time limit of one week set by the leadership of the House of Representatives.

In her defence earlier, the minister said: “At no time did I ever request any vehicle from the Nigerian Civil Aviation Authority (NCAA). It was the agency that had the need and made the request to the Ministry of Aviation. After the purchase on a three-year lease financing arrangement, the vehicles were never delivered to me. The vehicles were not registered in my name but that of the agency.”

Oduah said that the NCAA’s procurement of the vehicles through a lease agreement with the First Bank of Nigeria (FBN) was in accordance with the 2013 Appropriation Act, the Nigerian Civil Aviation Act 2006, and the Medium Term Expenditure Framework (MTEF).

The minister said the procurement of the armoured cars might not be out of place considering the fact that Nigeria which was on the verge of emerging president of the ICAO council could host dignitaries from the group and other international and regional organisations.

“My understanding is that what the NCAA has done is to plan for the acquisition of vehicles for the next three years within the MTEF through a lease financing arrangement with the FBN Plc. Under this arrangement, NCAA would have paid N100 million by the end of fiscal year 2013.

“The sum is below the appropriated amount of N240 million and less than what is required for the Federal Executive Council (FEC) approval. It would appear that what the NCAA has done within the frame-work of the MTEF and its desire to be prudent is to plan its budget in a manner that the cash flow of the authority is able to accommodate spending.”

The minister, who insisted that the BMW armoured cars were actually approved by the National Assembly, stated: “The NCAA owes its very existence to the benevolence and wisdom of the National Assembly expressed through the promulgation of the NCAA Act 2006. As the regulator of the civil aviation industry, the NCAA, pursuant to powers granted under the Civil Aviation Act 2006, makes and enforces regulations towards ensuring safety and security of Nigeria’s airspace. The NCAA, in addition, plays a pivotal role in carrying out Nigeria’s international obligations and responsibilities. Our role in the ministry and under the law is what I have carried out which is to support this from a policy and execution standpoint only.

“We reiterate that NCAA has not spent any money not appropriated by the National Assembly. Indeed, what they have spent so far on all the vehicles acquired through lease financing arrangement with First Bank is N52 million. By so doing, they have saved the nation cost and the possible embarrassment that may arise if the events we have pointed out earlier were to occur.

“We further reiterate that the NCAA did not purchase two bulletproof vehicles for me as the minister of aviation. We reiterate that the NCAA purchased two security vehicles for the operation of the NCAA in line with monies approved for the NCAA under the Appropriation Act passed by the National Assembly.”

But the Finance Ministry which the Customs Service on Wednesday claimed granted waivers to the supplier of the vehicles, Messrs Coscharis Motors Nigeria Ltd, debunked the allegation.

The ministry clarified that the waiver was for the Lagos State Government for the procurement of vehicles for the Eko 2012 Sports Festival and not to Messrs Coscharis.

The Customs Service also declared that the N10.1 million waiver loss to the Federal Government as reported by some dailies yesterday represented only the value of the three armoured cars and not the value of the entire 300 cars imported for the Lagos Sports festival.

These clarifications were contained in statements issued by the Ministry of Finance and the Nigeria Customs Service respectively.

The Finance Ministry’s statement signed by Mr. Paul Nwabiukwu, the Special Adviser to the Co-ordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, yesterday reads in part: “Recent media reports which claim that the Federal Ministry of Finance granted a waiver to Coscharis Motors Nigeria Ltd for the purchase of armoured cars are totally false and without foundation.

“Rather, on June 23, 2012, the Lagos State Government applied for Waiver of Destination Inspection Charges and Duty Exemptions for Coscharis Motors Nigeria Ltd, the official Automobile Partner for the National Sports Festival (“Eko 2012”), to purchase 300 vehicles on its behalf for the event.

“Since the Lagos State Government met the laid down criteria, the waiver was granted. It is also important to clarify that the waiver granted to the Lagos State Government for the event did not include the purchase of armoured vehicles,” the statement further insisted.

The Customs’ statement by Assistant Comptroller-General of Customs, Joseph Attah, said the Customs’ representative at the public hearing never alleged that the Finance Ministry granted waivers to Messrs Coscharis Motors Nigeria Ltd.

He also clarified that N10.1 million being reported as value of waivers for the entire 300 vehicles imported was not true as the amount represented the value of the waivers for the three armoured vehicles amongst the 300 vehicles imported.

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