Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,194,682 members, 7,955,523 topics. Date: Sunday, 22 September 2024 at 08:18 AM |
Nairaland Forum / Nairaland / General / Politics / How Banks Financed N255m Bullet Proof Cars, 54 Others (935 Views)
Bullet Proof Cars Tinubu Flew In From Germany / Federal Government Agency Buys 10 Bullet Proof Cars / Jonathan And Sambo To Buy 2 Bullet Proof Cars @ 280 Million Naira!. (2) (3) (4)
How Banks Financed N255m Bullet Proof Cars, 54 Others by donhuko: 7:09am On Oct 30, 2013 |
The controversial bulletproof cars allegedly bought for the Minister of Aviation may be the costliest ever bought by any government official in Nigeria, it emerged yesterday. Besides, The Nation obtained details of the transaction. The Ministry of Aviation is alleged to have spent N255 million on two armoured BMW cars for the minister. Aside this, it was gathered that the Nigerian Civil Aviation Authority (NCAA) will be paying 19 per cent cumulative nterest to First Bank, which financed the cars and 54 other “operational vehicles”. It is estimated that the bank stands to make about N122.170m from the deal spread over three years. A source explained the price difference for the armoured vehicles. He said: “It is not a car you buy across the shelf. It is a customised vehicle and any customised product is not something that you can see in the competitive market. It is based on the negotiation of the person that is buying. It is based on the agreed specification between the two of you that will determine the price.” The source cleared his agency of any financial irregularities, saying “we are not involved in that because our own is to finance the loan. So if the person who is getting the loan is satisfied with the price, that is when you are submitting back to us.” Three banks were initially shortlisted for the transaction. They are Stanbic IBTC, Union Bank and First Bank. Thereafter a letter “conveying the approval of the honourable Minister of Aviation for the engagement of First bank based on competitive proposal was sent to us,” the source said, pleading not to be named because he is not permitted to talk to the media. The government agency that negotiated the terms of the loan required to buy the cars gave the banks 90 per cent all inclusive terms, 18 per cent interest and then 0.5 per cent management fees to be charged by the bank. Thereafter, the car dealers, the source said, sent their invoices. Metropolitan Motors was to supply 54 vehicles. Coscharis supplied the two armoured vehicles. First bank paid the money directly to Metropolitan and Coscharis. Coscharis was paid in August. Metropolitan got its cash in September. Reminded that the agency spent more than what it got approval for, the source said “well, the answer is that the budgetary allocations for 2013 for this operational vehicle is N240 million for the total cars they bought, that is why they used this auto loan instrumental payment arrangement”. “The total amount for all the 56 cars is N643 million, but the impact for the first year is about N139 million, so that is why we are saying they did not spend above the budgetary allowance that the House approved, which is N240 million. So they are still working within that because they are not paying the whole money. Next year, they will get another allocation, so they will still pay from it. So that is it. It is rolled over for 36 month” he said. Source: thenationonlineng.net/new/bank-financed-n255b-bulletproof-cars-54-others/ |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by Infomizer(m): 7:19am On Oct 30, 2013 |
No be who carry shiiit na im fly go support? *hiss* |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by biafranqueen: 7:21am On Oct 30, 2013 |
I said it wow that interest rate is awful high 18% I thought Government would get a better rate because less risk involved What does an average citizen pay on loans? So the interest rate is almost as much as the car jeez zzz |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by Nobody: 7:23am On Oct 30, 2013 |
This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah? |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by biafranqueen: 7:26am On Oct 30, 2013 |
Sincere 9gerian: This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah?all I can say is that Nigerians are getting ready to get f ed up like Americans with Credit 18% REALLY. This is obviously a common practice in the FG the people's outcry should be for how much money they get per year for all these perks really do they need new cars new furniture etc every year the allowances are too much, but this has nothing to do with her that is the system! According to reports Fashola already dash his and it is not even 3 years yet |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by Jeel: 7:27am On Oct 30, 2013 |
This is issue is simply been over flogged 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by donhuko: 7:35am On Oct 30, 2013 |
Jeel: This is issue is simply been over flogged I agree with you on this....Several politicians have done worse and gone unpunished and even unnoticed. I wonder why this has been dragged to this extent. Even the so-called critics, activists and opposition members have done worse. 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by ballabriggs: 7:45am On Oct 30, 2013 |
Another line of defence from the hardened criminals. If I make a budget to purchase and I go on with a finance lease to acquire the same asset, what I have done is to violate that budget as finance lease is like taking a loan. It must be stated explicitly in a budget and in subsequent years lease payments must be included, in the budget till all your liabilities are fulfilled. What the hardened criminals have done here is even to put them in more soup. They are rogues and you will need to torture them before they say the truth. 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by eightsin(m): 8:06am On Oct 30, 2013 |
Someone is bout to loose her job. |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by donhuko: 8:45am On Oct 30, 2013 |
eightsin: Someone is bout to loose her job.That is almost impossible my brother....not guilty until proven guilty !!! 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by nameo: 10:34am On Oct 30, 2013 |
ballabriggs: Another line of defence from the hardened criminals.Then if the NCAA, not even the Minister, is 'guilty' of wrong and extravagant expenditure that might have been somewhat away from strict adherence from Procurement laws, BUT NOT that they were corrupt in this instance. The fact that a lease agreement with Banks was used in the acquisition of those cars shows that accusation of corruption against the Minister or Agency has been largely overflogged and a bit exaggerated. WASTE and Extravagant Spending, Yes; but, Corruption in other to line their pockets, No. 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by takedat(m): 12:11pm On Oct 30, 2013 |
Sincere 9gerian: This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah?Her major sins are Abuse of Office, waste and fraud, judging by the information available in public domain. 1. Abuse of Power: a) The NA which is the arm of government empowered to appropriate funds has denied ever appropriating any sum of money for the procurement of armoured vehicles in the 2013 Appropriation Act. The minister on her own gave the approval without recourse to the NA. A violation of the Appropriation Act. b) Such an amount is beyond the threshold of the NCAA, and needs a FEC approval. For the Presidency not to have come out to acknowledge ever approving such, also amount to Abuse of office and misconduct. c) The Bureau of Public Procurement has also denied ever issuing a 'Certificate of No Objection' to NCAA or the Ministry of Aviation. It means NCAA violated the Public Procurement Act. Another Abuse of Office. 2. Fraud: Even if we should go by the argument of the NCAA that the cars were procured under a lease agreement. N240million was approved for the purchase of operational vehicles, an extra N403million was spent bringing it to a total of N643million borrowed from First Bank. The lease agreement would yield an interest of N122million at the end of the 3 year repayment plan. N122million added to N643million will make it N765million for the purchase of 54 Operational vehicles. The question begging for answer is; a) Even if the 54 operational vehicles were all captured in the Mid-Term Expenditure Framework(the planning tool), nothing stops the Ministry/NCAA from procuring the vehicles as captured in the MTE Framework for a period of 3 years. Why didn't the ministry approach the FEC to send a supplementary appropriation bill to the NASS for additional funds to be appropriated if the need for urgency arose? N122million would be fraudulently drained from public purse at the end of 36months repayment plan. 3. Waste: Buying 2 cars for N255million. The President in the 2012 budget requested for 2 bulletproof vehicles for himself and the Vice President at the cost of N280million, but had to jettison the idea due to public outcry. Why should a ministry engage in such waste? A ministry we are told is struggling to send its workers for overseas training? N122million cumulative interest is also a waste. These allegations are enough for the Presidency to sack all those involved. *Note; till date no one is able to verify if those armoured vehicles were procured because the agency have denied journalists, physical inspection of the vehicles. It is possible those cars were not procured, but paper work done in order to defraud Nigeria. There is also the new revelation from FAAN. 1 Like |
Re: How Banks Financed N255m Bullet Proof Cars, 54 Others by nameo: 1:38pm On Oct 30, 2013 |
take dat: Her major sins are Abuse of Office, waste and fraud, judging by the information available in public domain.. |
(1) (Reply)
Power Sector Reforms: Interstate Electric Takes Over Enugu Disco On Nov 1 / Governors Babangida Aliyu&Sule Lamido: says we are still in PDP / He Was Stripped Naked, Thrown Into Cage & Eaten Alive By Dogs [DETAILS]
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 45 |