Amaechi’s Aircraft Ineligible for N-Registration & Why the Pilot Did Not Tender the Manifest

The whole aircraft registration scandal is just unfortunate yet intriguing. The Rivers State Government fell prey to poor advice and this is the simple truth. I feel sorry for the governor who has been super mired in the minutiae of this brouhaha and must have been taken aback by the emerging facts and the damning implications. The truth is

that the Rivers State Government does not qualify to register its aircraft in the United States. The eligibility criteria set by the US Federal Aviation Authority (FAA) as retrieved from the US FAA website on May 2, 2013, which is still valid as I write is that:

"An aircraft is eligible for U.S. Registration if it is not registered in another country and it is owned by:



1. U.S. citizen as defined in 14 Code of Federal Regulations Part 47.2.

2. Resident Alien (foreign individual lawfully admitted for permanent U.S. residence

3. U.S. governmental unit or subdivision

4. A non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.)

5. An aircraft may be registered only by and in the legal name of its owner.

The eligibity criteria is very clear, and as it is evident the Rivers State Government or their advisers understood that the state's aircraft was not eligible for such a registration. In a smart move, they got an American trustee/trustor in the Bank of Utah Trustees, satisfying the first eligibility criteria. Still, the aircraft did not meet other FAA eligibility conditions - eligibility conditions 4 which states that: "A non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.)".

It also failed the US FAA eligibility criteria 5 which states clearly that: " An aircraft may be registered only by and in the legal name of its owner." Therefore, the story about trustee and trustor put up by the state commissioner of information only showed clear unpreparedness, because an aircraft can only be registered in the United States only BY and IN the legal name of its OWNER. Therefore, the deal between the Rivers state government and the Bank of Utah is an OWNER TRUST. This means the legal owner of the aircraft is the Bank of Utah, and the titles of the aircraft does no bear Rivers state government. The government of Rivers state is just an 'absolute user' in the period of the trust.

What this means is that the Nigerian authorities actually have no business with the Rivers state government on this matter. Hence, it is the responsibility of the Bank of Utah Trustees to engage the Federal Civil Aviation Authority of Nigeria. That may have been the reason why the FCAA has not contacted the government of Rivers State. The grounding notice will be sent to the OWNER of the aircraft - the Bank of Utah.

Also, the most damning part of this aircraft registration saga is the final condition, which the Rivers state aircraft does not satisfy. Which is that the aircraft must be based in the United States or 60% of all flight hours must be from flights starting and ending within the US. This is clearly the reason why the flight manifest cannot be tendered to the Nigerian aviation authorities. Tendering the flight manifest means that the local flight times and log of the aircraft will be shown and the US authorities will nullify the registration. This is a very obvious fact.

In early 2011, the Federal Aviation Administration (FAA) ignited a minor firestorm when it temporarily halted approval of ownership trusts as permitted owners of U.S. registered aircraft. The FAA’s action froze many aircraft transactions and cast doubt on foreign buyers’ ability to register aircraft in the U.S. The FAA moratorium was in response to situations in which the trustee of an aircraft ownership trust seemed unable to provide the FAA with basic information as to the aircraft’s operational status. The FAA quickly “unfroze” the processing of ownership trust applications, and over for almost a year tried to fix the situation. It is the pressure of the FAA on trustees, to submit aircraft report that may have constrained the pilot of the RVSG aircraft from submitting the manifest.

The implication of registering a local aircraft in a foreign land to 'preserve value' is that Rivers state public funds is paid to the US FAA as registration fees and taxes. As Robinson Sibe, an online commentator put it: "How can we grow our own aviation industry if we run to the US to register state owned aircrafts? Imagine a province in China going to register their aircraft in US. Imagine a free man putting his wife in trust of a stranger 'to preserve value'."

The other consequence of this registration is that Rivers state may pay hugely for this. First, the US authorities will definitely penalize the Bank of Utah Trustees for registering a foreign based aircraft and manipulating the flight log, and the Nigerian authorities may seize the aircraft as it is an illegal immigrant without improper flight logs and papers.

I do feel and very deeply that the Rivers State Government had been wrongly advised on this matter, but also it will be good to know if the former aircraft which Governor Peter Odili used was also registered in the United States.

However, I think the Rivers state government deserves a fair hearing, even though at moments like this, the oratory of Magnus Abe, former commissioner of information and serving senator, is missed. It is important that all parties thread the part of caution as security in the state remains fragile.

If there is one thing Governor Amaechi has achieved in Rivers state, it is the restoration of order and security, and as the treasure base of the nation, it is important that politicians consider the fortunes of the people of Rivers state while act their drama.

Ross Alabo-George is an observer.

Port Harcourt


Source:

http://elombah.com/index.php/special-reports/15675-amaechi-s-aircraft-ineligible-for-n-registration-why-the-pilot-did-not-tender-the-manifest

Is this how far they want to go.... certificated e-diots...

Omo_Tier1: Is this how far they want to go.... certificated e-diots...

asking you to be reasonable is like asking for the impossible

Hmmmn now the intrigue is unfolding! I knew there was a hidden dragon behind these issue.
So state exec. and rich nigerians do not register their airplanes in Nigeria! what a loss of revenue to the country, these is just too shameful, yet they pay lip service to national development.
How will favourable climate for aviation development occur in Nigeria when its citizens/government do not trust in their country enough to invest in it?
Imagine Rivers state government registering an aircraft that carries its state Number one citizen bearing the registration licence of the state of UTAH! and generating huge revenue to UTAH,USA.
A STATE IN THE US POPULATED BY MORMONS(CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS), where until a few years ago the church doctrine was that the likes of Amechi and all the citizens of rivers state + all black people were considered subhuman and therefore incapable of being members of their church and by extension the state they occupy.
I weep for Nigeria.

Leadership is still a major issue in this country.When elected official are not patriotic and will willingly debase their country by registering a state owned aircraft as foreign and by extension contributing to the economy of a foreign state while their own economy/people are in poverty, just for the convenience of ease of travel!
If the government is so unpatriotic what then is expected of its citizens.
Yet the person perpertuating this policy is one viewed as a likely vice presidential candidate for Nigeria.
Its time we as Nigerians start to look at policies of politicians when they clamor for positions rather than their ethnicity , and regional affinity if the country must move forward.
Folks Like Amaechi should be very toxic in nigerian political arena not for his opposition to the presidency which i see as his right for free speech and right of association, and independent thought which he is entitled by the constitution, but for his unpatriotic stance to his country.
This same governor was the one that during the NGGTour in rivers state, It was reveled that Some of his teachers complained that Although he built great primary/secondary school in the state,but the management of the schools has been outsourced to Indians. where he pays the Indians more money than nigerian teachers with the same qualifications.
Which country outsources the education of its citizen to foreigners? Any developing nation that seeks advancement must invest in the education of its citizen case in point Singapore with no natural resources but has forged ahead into and advanced economy simply by raising the level of education of its citizen.
While Gov. Ameachi must be commended for his investment in educational infrastructure, he needs to do more in the aspect of training his educational staff up to the standard that will befit the kind of school he has in mind for rivers state. Not outsourcing school mgt. as that model will not be sustainable after his administration.But rather a gradual training of teachers/administrators/technicians sourced from rivers state with teeming population of unemployed graduate who will jump at such opportunity will be a more sustainable model.
Until the above is done, governor amaechi will still be perceived by many as an unpatriotic nigerian citizen and rightly so for his willingness to waste the commonwealth of rivers state on foreigners/improve the economy of nations far advanced than ours that does not require such help from rivers state.
My intent on writing this piece is not to vilify the governor but to offer a constructive critique. I must add that i admire the governor for his independent thought and investment in education and healthcare. I love the kind of schools he is building in RS.