[size=18pt] Borishade, Fani-Kayode, others to refund N5.4bn[/size] - Senate

Taiwo Adisa, Abuja - 02.02.2009

The Senate Committee on Aviation, which probed the N19.5 billion Aviation Intervention fund released during the tenure of President Olusegun Obasanjo has recommended that the four persons named in the management of the fund including the two former Ministers of Aviation, Professor Babalola Borishade and Chief Femi Fani-Kayode, should refund N4.5 billion to the coffers of the government.

Others mentioned in the report who are to refund part of the money include the former Managing Director of the Federal Airport Authority of Nigeria (FAAN), Mr. Rowland Iyayi and the Managing Director of Avsatel Company Limited, Mr. George Eider. The recommendation is contained in the report of the committee headed by Senator Anyim Ude, which will be debated by the Senate tomorrow.

It was also gathered that the committee recommended that the Federal Government should intensify the ongoing probe of the affected officials especially in the area of contract awards that covered the Aviation Intervention Fund. The report of the aviation committee had suffered a setback in the Senate last year, following the rejection of the initial report by the senators.

Senators had claimed that the report was scanty and that the chairman did not carry along his members in compiling the report. The current report has already been laid before the Senate and is scheduled for debate tomorrow.

It was gathered that the report also recommended that the Economic And Financial Crimes Commission (EFCC) should continue the prosecution of the arrested persons in connection of the N19.5 Billion aviation fund. The Committee recommended that the former Ministers and the aviation Chiefs should refund the said N4.5 billion which was part of a loan of N6.5 billion said to have been sourced from Zenith Bank without the approval of the Federal Executive Council.

The Committee stated that it discovered that the Safe tower project was actually executed with the sum of N1.1 billion. The Senate Committee was early last year mandated to probe the usage of the N19.5 billion aviation fund, leading to the appearance of Prof Borishade and Chief Fani-Kayode before the committee.

After appearing before one of the public hearings of the Committee last year, the two former Ministers and Iyayi were arrested after the Austrian, Eider was earlier picked up by operatives of the EFCC iinside the National Assembly.

Also, the committee in its recommendations asked the Federal government to further investigate the usage of the N2billion meant for the payment of severance allowances for the retirees in the Aviation sector .It was believed that some ghost workers had benefited from the disbursement of the money, while nearly 400 workers who made away with about N780 million were regarded as ghost workers.

Chief Fani-Kayode had defended himself while appearing before the Senate Committee saying he had a copy of approval by the Federal Executive Council (FEC). He said, “I have a copy of FEC approval here, the contract was supposed to be funded from the Natural Resources Development Fund and to be paid back in five years.”

Prof. Borishade also defended himself while appearing before the committee. He said: “When I left in November 2006, the contracts had been awarded but no withdrawals were made.” The appearances of the two Ministers were however characterized by contradictions as they continued to make counter allegations. For instance, Fani Kayode was to contradict Borishade, when he insisted that the former Minister had made some payments before he left office.

He said :”I cannot be held responsible for the N8.4 billion that was spent before I came in or for what happened to or what was spent out of the approximately N7.2 billion that I left behind. I can only be held responsible and accountable for the approximately N3.8 billion intervention fund and 11.5 billion Rivers State Government Soft Loan that I administered.”