₦airaland Forum

PRESIDENT APPROVES FURTHER INVESTIGATION INTO NIGERIAN ARMY PROCUREMENT SCANDALS

President Muhammadu Buhari has approved the recommendation of the Committee charged with investigating the Defence Equipment Procurement from 2007 to 2015, for further investigation of those involved, after the committee found a number of irregularities in the contract awards.

The approval followed the Third Interim Report of the Presidential Committee on the Audit of Defence Equipment, which was released on Thursday.

Among those to be investigated are 18 serving and retired military personnel, 12 serving and retired public officials and 24 Chief Executive Officers of Companies involved in the procurement. All were either accounting officers or played key roles in the Nigerian Army procurement activities during the period under review.

Those listed for further investigation include two former Chief of Army Staff, Lt.-Gen. O.A. Ihejirika (Rtd) and Lt.-Gen. K.T.J. Minimah (Rtd); former Minister of State for Foreign Affairs II, Dr Nurudeen Mohammed and three former Permanent Secretaries in the Ministry of Defence - Mr. Bukar Goni Aji, Mr. Haruna Sanusi and Me. E.O, Oyemomi.

Also, the CEOs to be investigated include Col. Olu Bamgbose (Rtd) of Bamverde Ltd; Mr. Amity Sade of Doiyatec Comms Ltd and DYI Global Services and Mr. Edward Churchill of Westgate Global Trust Ltd.

According to the Committee, the total amount spent for procurement and operations within the period were N185,843,052,564.30 and $685,349,692.49.

It found that the Nigerian Army Contracts awarded by the Ministry of Defence for the period under review were often awarded without ''significant input from end-user (Nigerian Army) and to vendors who lacked the necessary technical competence''.

''As an example, 3 contracts with a total value of N5,940,000,000.00 were awarded to DYI Global Services Ltd and Doiyatec Comms Nig. Ltd (owned by the same individuals) for the procurement of military hardware including 20 units of KM-38 Twin Hull Boats and 6 Units of 4X4 Ambulances fitted with radios. The committee found that the 2 companies collected N5,103,500,000.00, representing 86% of the total value of the 3 contracts worth N5,940,000,000.00, but only performed to the tune of N2,992,183,705.31,'' the report said.

The committee also found that a contract worth N169,916,849.77 for the procurement of 53 Armoured Vehicles Spare Parts, with 90 days completion time, is yet to be completed 5 years after.

With respect to contracts awarded directly by the Nigerian Army, the Committee found that many of the contracts were characterized by ''lack of due process, in breach of extant procurement regulations and tainted by corrupt practices.

''In this regard, a review of the procurement carried out by Chok Ventures Ltd and Integrated Equipment Services Ltd established that between March 2011 and December 2013, the 2 companies exclusively procured various types of Toyota and Mitsubishi vehicles worth over N3,000,000,000.0 for the Nigerian Army without any competitive bidding.

''Though the committee found no credible evidence of delivery of the vehicles, the vendors were fully paid based on job completion certificate authenticated by the then Chief of Logistics. Also, analysis of the various bank accounts of the 2 companies showed transfers to individuals related to then Chief of Army Staff,'' the report said

AVM Jon Ode (Rtd)
President of the Presidential Committee on the Audit
of Defence Equipment Procurement in the Armed Forces
(2007-2015)

​NOTE: FULL 3RD INTERIM REPORT OF THE COMMITTEE IS ATTACHED HEREWITH​ (Pages 1-4 below; 5-7 in another post)

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BY Garba Shehu

Senior Special Assistant to the President (Media and Publicity)

OUT OF THE BLUE, a group calling itself the Niger Delta Avengers, NDA sprouts. They kill soldiers and policemen. They kidnap and kill oil company workers. Piracy on the high seas. They asked oil companies to stop operations and pack out of the Niger Delta region.

They blow up oil pipelines, power and other infrastructure. They attack and kill prominent individuals,ransacking homes up and down the coastal areas, including lately, Lagos and Ogun states.

All these for what?

It is still unclear what they want. From the diverse, if vague and inchoate voices of the militants, some say they want to take control of the oil resources in the region. Sometimes when the rhetoric gets uglier, they call for the breakup of Nigeria as a country!

The scariest part of what is happening is that the media, in their appetite for sensational stories are egging them on to make a great display of seditious, anti-national sentiment. In the last stages before her government's defeat of the Irish Republican Army,IRA Prime Minister Margaret Thatcher likened publicity for the terrorist to oxygen needed for survival. "We must deny terrorists the oxygen of publicity," and the independent English press gave the Prime Minister a free pass.

In the midst of these unfolding events, President Muhammadu Buhari had maintained an uncharacteristic aloofness.

Many had thought for instance that he would tackle the new onslaught on the economy with the same hawkishness that characterized his tenure as military Head of State in the 80's. But he did not panic, either.

In fact several of the political leaders of the Delta, themselves severely under pressure for their inability to keep up with salary payments have been in the forefront of the calls for the "strongest possible military action" against the terrorists. The country's third richest state, Delta State gave notice a week ago that workers salaries can no longer be guaranteed.

So far, the President has resisted the urge to pull the trigger. Yes, the army has mobilized to the region but military action has been stayed as the country absorbs the incredible shock that has come with the fall of oil revenues. Records of oil exports are at their lowest levels in 30 years.

The Punch newspaper, in an editorial on Friday July 1 warned the government about inherent "landmines" in any negotiations: "It is like dealing with a blackmailer: he keeps making all sorts of demands, reasonable and otherwise. Worse, there is a high probability that other splinter militant groups will emerge based on the negotiations with the NDA. They will threaten the state expecting to be negotiated with. At the end of the day,the government would have numerous groups to contend with than it can handle."

In my conversation on this issue with General Babagana Munguno, the National Security Adviser precisely two weeks back, he informed this reporter that he met 14 groups claiming leadership to the renewed onslaught on the nation's economic jugular vein.

Each of the groups had been brought to him by a serving governor or a former one; a serving minister or one that had left office with assurances that "this group is the one to talk to."

The amazing discovery he made from his meetings is the lack of unity among them as each group that came attacked the one that came before it as inconsequential.

Leaning on an editorial by the influential British newspaper the Economist, the Punch recommended strong military action. Quoting the Economist, the newspaper said "Buhari should not try to buy them off. Rather, he should arrest those those who have committed acts of violence or extortion."

At a meeting with the Niger Delta Dialogue and Contact group led by His Royal Majesty King Alfred Diete-Spiff at the State House last Thursday, President Buhari spoke most extensively on his own approach to the crisis in the region.

He told Diete-Spiff, himself a former military governor of the old Rivers State that peace and stability in the the Delta region and the country is the priority of his government and there will be no compromise on this. To show respect for the visiting ruler, President Buhari recalled that he was "a bloody army Lieutenant" when the Amanyanabo of Twon Brass was a military governor.

He disclosed that his decision on what to do dealing with the problem of the region will be based on the reports he is expecting from the Minister of State, Petroleum Resources, Ibe Kachikwu who is interfacing with all stakeholders; the Special Adviser to the President on the Niger Delta overseeing the amnesty program and the new management of the Niger Delta Development Commission, NDDC.

Allying fears that he would jettison the Niger Delta Peace Plan he inherited from the previous administration, President Buhari told his visitors that he had read the agreements and the gazette outlining the amnesty program.

He said he had asked his officials on assignment on the Niger Delta to look around and see how many of the signatories to the amnesty agreement are still around.

"Let them find out what has been achieved and what is left and then write a report.

"I have asked the Minister of State Petroleum to work with the oil companies. We need to get as much intelligence as is possible before we start talking.

"I sympathize with the investors who borrow money, half way through, their investment is blown away.

"I have encouraged law-enforcement agencies to contact leaders like you (Amanyanabo). When I move in, I will have plenty of information so as to deal with the issue once and for all. We will talk to as many groups as possible. We won't give up.

"Whatever remains of the Yar'Adua agreement will be met."

He then talked about the impact of the collapse of the oil prices, which averaged about 100 US Dollars from 1999 to 2015, saying that its fall to about 30 Dollars a barrel some weeks ago was shocking. "I would have been in coma if not for the fact that I was in Oil (sector as a past minister) for three years."

He then sent an important message at this meeting: "We intend to rebuild this country so that our children and grandchildren will have a good place. But a lot of damage has been done. Tell the people to be patient.

"When you get together, pacify the people. Let them be patient. We will utilize (their) resources with integrity."

The President's conciliatory note came a day after he hosted the National Council of Traditional Rulers to a Ramadan Iftar, at which event he asked the rulers to "beg the militants in the name of God to stop their sabotage of the economy." He appreciated the efforts they and the oil companies were making and said he did not wish to undermine them. This equally signaled a highly conciliatory direction for the resolution of the crisis.

It is clear from the foregoing that the President is taking a bit of time but it is also because he is determined to find a lasting solution to the recurring crisis in the Delta.

It is important for the country that a lesson be learned from the many past meetings and agreements between government groups and the militants that have yielded only short term political dividends. What is wrong with those agreements that they don't last?

How many of those agreements, joint statements, ceasefires and peace declarations do we have on record so far? Why haven't they given us peace?

Second issue the President is obviously weighing is the integrity of the country's internal capacity for the resolution of crises.

Over the years, this country has evolved ways of dealing with problems, real or imagined that threatened its existence from time to time. The amazing thing about it is that solutions emerge from within, that is without the involvement of external influences. This why we have come this far.

In his desire to build a country in which every part is carried along, he is mindful of the fact that if any part of the body is paralyzed, the whole body cannot be said to be alright. The President is mindful of the fact that the Delta region is an important part of the whole.

But as he charts his course for a permanent peace in the Niger Delta, it is important however that militants don't mistake his efforts as a sign of weakness.

The Presidency has dismissed as laughable the desperate attempt by Governor Ayo Fayose of Ekiti State to link President Buhari's wife Aisha to US Congressman William Jefferson's bribery scandal for which the American lawmaker was convicted in 2009.

Reacting to Fayose's allegations in a press statement, the Senior Special Assistant to the President on Media and Publicity, Malam Garba Shehu, said ordinarily the presidency would have ignored Fayose because he is a man "childishly obsessed with the desire to grab the headlines and insulting people at will because of his incurably boorish instincts."

Malam Garba explained however that the presidency chose to respond on this occasion for the sake of innocent Nigerians who might be misled by Fayose's shameless and blatant distortion of facts.

He said ignoring Fayose carries the risk of giving traction and credibility to outright and brazen falsehoods inconsistent with the status of anybody that calls himself a Governor or leader.

According to Shehu, Aisha had no direct, indirect or the remotest connection with William Jefferson's corruption scandal in the United States.

He challenged Fayose to tell Nigerians if the so-called Aisha whose pictures he proudly, but ignorantly shared, was the same Aisha married to President Muhammadu Buhari, or if the Aisha of his idle imagination had any relationship by blood or any relationship in whatever form, with President Buhari's wife.

Shehu also challenged Fayose to produce evidence from the records of investigation and subsequent trial of Jefferson to prove that Buhari's wife Aisha was in anyway linked to that scandal. He explained that common names alone are not enough to automatically link innocent people to crimes or scandals, especially in an era of identity thieves.

He further challenged Fayose to show proof when and where Aisha Buhari was invited for interrogation in connection with Congressman William Jefferson's bribery scandal, let alone indicted for a crime locally or abroad.

According to the Presidential Media Aide, free speech does not entitle Governor Fayose to falsely accuse innocent people of crimes they knew nothing about.

He warned Fayose that Aisha Buhari is entitled to protect her reputation from being recklessly maligned, adding that political opposition is not a licence to attack people's reputation brazenly without legal consequences.

Op-Ed for the Wall Street Journal - June 13, 2016
http://www.wsj.com/articles/the-three-changes-nigeria-needs-1465842888

Nigeria is at a crossroads. Just over a year ago, people voted in a historic democratic election to end corruption and business as usual, opting instead to build an economy that delivers for all Nigerians.

The old order was based on an unsustainable commodities supercycle. While the boom had many positives and contributed to Nigeria becoming Africa’s largest economy, it fostered an epidemic of corruption and inefficiency. Foreign businesses and financial institutions also benefited as some people spent and sometimes hid huge sums abroad, lifted by the rising tide of oil exports and dollar revenues.

Now we are living in a new world of low energy prices. The economy has slowed while unemployment and inflation have jumped. Longstanding structural imbalances and overdependence on imports have been cruelly exposed. We are an oil-rich nation that imports most of our gasoline. We are a farming nation that imports most of our basic food staples. This is simply not acceptable or sustainable.

Our solutions must be in proportion to the challenges. Fundamental change takes time and we are driving not one but three changes to reposition Nigeria for inclusive growth.

• Restore trust

We have begun to tackle the endemic corruption and mismanagement that is crippling our economy and corroding trust in our institutions. The anticorruption fight is at the heart of combating poverty and improving security. We have stepped up enforcement and new prosecutions to get our house in order, and I have called for foreign governments to work with us to identify where funds stolen during previous administrations are lodged and for multistate cooperation to combat oil theft.

Fighting corruption is not enough. We need accountable government and a public sector that can do more with less. We have already taken initial steps by bringing all government finances into a single treasury account where we can monitor spending and impose discipline, implementing zero-based budgets and benchmarks targeted at waste and fraud, and establishing electronic platforms for government agency interface.

• Rebalance our economy

In a world of lower oil prices and dollar revenues, the only sustainable path is to reduce Nigerians’ overreliance on imports. We must rebalance our economy by empowering entrepreneurs and producers, big and small, to create more of what their fellow Nigerians demand. The supply of foreign exchange to the economy must be increased. This requires radically increasing exports and productivity and improving the investment climate and ease of doing business.

Nigeria’s growth and job creation will be led by the private sector. We are a young, entrepreneurial society with vibrant success stories in new industries such as telecommunications, technology and entertainment. Government is doing its part to lower taxes on small businesses, eliminate bureaucracy to bring the informal economy out of the shadows and provide development funding for priority sectors such as agriculture. The central bank has moved to introduce greater flexibility in our exchange-rate policy. These actions are a downpayment on our people’s ability to succeed.

• Regenerate growth

We must reposition our economy by attracting investment in domestic industries and infrastructure. Nigeria has huge untapped gas reserves and also a critical shortage of electricity. Our private sector loses too much of its revenue due to brownouts and power outages. Half of my fellow Nigerians have no access to the power grid. Investment in our power infrastructure, restructuring of the state-run oil-and-gas sector and development of other industries such as solid minerals, metals and petrochemicals will help to create a virtuous circle of growth and exports while creating jobs and reducing poverty.

I am optimistic that our actions are providing the breathing room Nigeria needs during this period of fundamental change. But we cannot improve living conditions and restore fiscal health without making people feel safe and secure—just as we cannot defeat militancy without reducing poverty and dislocation.

One of our main achievements this past year has been to unite regional and global allies to push back Boko Haram. What we do in the next three years to build an economic bridge to Nigeria’s future will be just as important for bringing lasting peace and prosperity.

Mr. Buhari is the president of Nigeria.

The newly launched Jobs portal of the Federal Government "[url]N-Power.gov.ng[/url]", has recorded over 400,000 successful registrations since it opened for submissions at on Sunday, June 12, 2016, according to the Job Creation Unit in the Presidency.

“We have been very impressed by the enthusiastic response to the call for applications. As at noon on Monday June 13, only 36 hours after the launch of the portal, 403, 528 applicants had successfully registered on the site and were in the middle of completing the application process,” said Mr. Afolabi Imoukhede, Senior Special Assistant to the President on Job Creation.

“We are also very pleased that the registrations have been taking place without any hitches or system failures, considering the volume of response.”

All together the website has received over 35 million hits since Saturday midnight.

The Jobs Scheme, known as ‘N-Power’, is one of the five initiatives of the Social Investment Programmes of the Federal Government of Nigeria, described by President Mohammdu Buhari in his Democracy Day Speech as “by far the most ambitious social protection programme in our history.” A total sum of N500B has been provided for the programme in the 2016 Budget, an unprecedented development in Nigeria's budget history.

N-Power is designed to help young Nigerians acquire and develop life-long skills to become solution providers in their communities and to become players in the domestic and global markets.

It will provide employment opportunities for 500,000 graduates as teachers, agriculture extension advisers, healthcare assistants, and civic and adult education instructors in communities across Nigeria.

There will also be a pool of 100,000 software developers, hardware service professionals, animators, graphic artists, building services professionals, artisans and others.

Applications for the Scheme commenced on Sunday June 12 on the portal: www.npower.gov.ng, and will open until July 25, 2016, after which screening and shortlisting will be carried out.

The Buhari presidency assures all Nigerians that this application process would not only be structurally robust, transparent and fair, the selection process that will follow would also be based on objective criteria that has nothing to do with party affiliations.

Unemployed Nigerians both graduate and non-graduates would be drawn from across the country on state by state basis in the final analysis.

Mrs Maryam Uwais, Special Adviser to the President on Social Investments, said: "We are committed to ensuring transparency, equity, fairness and balance in the selection process, always bearing in mind our sundry nuances and contexts, to achieve efficient and optimal results in our NPower Programme."

Laolu Akande
Senior Special Assistant-Media & Publicity
In the Office of the Vice President
June 13, 2016