Friday, November 1, 2013

N255m armoured cars not for me —Oduah •Insists due process was followed •No waiver for armoured cars —Finance Ministry


THE embattled Minister of Aviation, Mrs Stella Oduah, on Thursday, finally appeared before the House of Representatives Committee on Aviation probing the reported purchase of two armoured BMW cars for her by the Nigeria Civil Aviation Authority (NCAA) at the cost of N255 million, as the minister claimed that the controversial amoured vehicles were never purchased for her use.
The committee had adjourned the investigative hearing on Wednesday till Thursday, to allow the aviation minister present her case before it.
The minister, while addressing the committee chaired by Honourable Nkiruka Onyejiocha, maintained that “many have abused me that I allegedly spent the sum of $1.6 million of government funds to purchase for myself two number bulletproof BMW cars for my personal use,” stressing that “the allegation concerning the purchase of bulletproof cars for me by the NCAA is false in its entirety.
“Sadly, other than the conjecture, the publication has not supported this inflammatory statement with any rational basis. As a matter of fact, their justification and confirmation, which they brandish, is nothing but the erroneous responses of my aides.”
She said “there was nothing in the approved documents reflecting my name when the budget was being made. At no time did I ever request for any vehicle from the NCAA.
“It was the agency that had the need and made the request to the Federal Ministry of Aviation. After the purchase on a three-year lease financing arrangement, the vehicles were never delivered to me.
“The vehicles were also not registered in my name but that of the agency. All I did was to approve the request of the agency, subject to it doing the needful, as evidenced by my minutes on the letter dated April 15, 2013.”
The minister, however, noted that the acquisition of the vehicles by the NCAA was borne out of the need to upgrade the agency’s dilapidated vehicle fleet, in line with its ongoing restructuring at the agency, adding that apart from the two BMW bulletproof vehicles under investigation, 52 others of different makes and sizes were also purchased in a lease financing arrangement with the FirstBank of Nigeria at a total cost of N643 million to service all the 22 Federal Government-owned airports across the country.
Justifying the purchase, the minister said as an important player in the International Civil Aviation Organisation (ICAO), coupled with the expected emergence of a Nigerian as the president of organisation’s  General Council in a few days, “it is not out of place for NCAA to upgrade its fleet of vehicles to ensure the safety of expected international visitors and guests as the country plays its expected role in ICAO’s activities.”
The minister, however, dissociated herself from the comments made by her spokesman and the coordinating spokesperson for the aviation parastatal agencies.
She said a report of her spokesperson that the alleged purchase of the vehicles rose over concerns for her safety was “inaccurate and erroneous.”
She stated further that online publications that she compelled the NCAA to purchase cars for her were “false and malicious” allegations, adding that they were “false in its entirety.”
The minister added that the defence of her aide, the coordinating spokesperson for aviation agecnies and NCAA boss, Captain Fola Akinkuotu, “was no attempt to either deliberately mislead the public or conceal any information regarding this transaction; and also to formally apologise for whatever tension or perception of same as a result of the foregoing.”
She, however, said the whole controversy was created by “the entrenched interests in the aviation sector who, for over 38 years, have held the sector by the jugular and refused to allow any meaningful development and change to take place.
“For the over 38 years that our airports were a damning commentary on our status, even when our airspace existed without the requisite navigational equipment and facilities to make the airspace safe; this group of persons saw no evil and heard no evil.
“Under the leadership of President Goodluck Jonathan and the overwhelming support of the National Assembly, my team and I have changed the game in favour of Nigeria towards attaining its pride of place in the aviation world.”
On whether the NCAA spent monies not approved by the appropriation Act 2013, the minister said “the NCAA will never spend monies that have not been appropriated by the National Assembly.”
She further said the NCAA, in carrying out the transaction, acted within the framework of the Medium Term Expenditure Framework (MTEF) approved by the National Assembly, stressing that “with regard to acquisition of operational and other security and safety vehicles for the next three years, in a manner, comply with Section 80(4) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), which prohibits the spending of monies from any fund of the Federation, except as appropriated by the National Assembly.”
While debunking the insinuation that the NCAA had spent N255 million on the purchase of the two bulletproof BMW cars, she pointed out 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 FirstBank 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 FEC approval.”
According to her, “the deal between the NCAA and FirstBank of Nigeria Plc, which came to a total sum of N643 million, is a mere understanding and not an obligation. That is why it is included in the MTEF which could be called off in the event that the two parties decide to discontinue, hence all title documents are in the joint names of NCAA and FirstBank of Nigeria Plc.
“It is my understanding that by the end of the year, the total amount to be paid by NCAA to FirstBank of Nigeria Plc will be N100 million only, based on an understanding the NCAA has with the bank and the balance of N16 million only will be paid in the following year.
“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 the lease financing arrangement with FirstBank of Nigeria Plc 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,” she stated.
The minister also insisted that the purchase of the two bulletproof vehicles was approved by the National Assembly, saying, “in addressing the issue of authorisation by the National Assembly as contained in item six of the budget, we invite your honours to consider the narration.
“In the narration, your honours will observe that the two number security/safety vehicles are provided for distinctively.”
When reminded by a member of the committee, Jerry Manwe, that the National Assembly rejected armoured cars in the budget she was defending, the minister said “NCAA will answer that.”
Another member, Zakari Mohammed, also asked her why she exceeded her approval limit for the ministry, to which she replied that her comment on the letter to NCAA was not final, but advisory.
The committee shifted blame to the former acting Director General of NCAA, who was tackled for initiating a memo to the minister for a purchase out of budget and even beyond approved limit.
Manwe further asked the minister that “if the armoured cars were not for you (minister) as you claimed, who is using them now?”
The former acting DG, who answered the question on behalf of the minister, said “anyone can use any car in the pool. Anybody can use them; but those kind of cars are for VIP movement, including foreign dignitaries, including the minister, and even you honourable member.”
The committee, at the end of the investigative hearing, assured Nigerians that it would do justice to the investigation.

No waiver for armoured cars —Finance Ministry
The Federal Ministry of Finance has denied news reports that it granted duty waiver for the armoured cars, while it clarified that the waiver in question was granted the Lagos State government for the National Sports Festival.
In a statement issued on behalf of the Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala by her media adviser, Paul Nwabuiko, the ministry affirmed that the Lagos State government applied and got the approval after meeting the conditions.
The statement also clarified that at no point in time was the armoured cars included in the waiver, thereby disowning statement credited to Cosma Maduka of the Coscharis Motors that the waiver for the supporting event covered the armoured cars.
According  to the finance minister, “it is important to clarify that the waiver granted to the Lagos State government did not include the purchase of armoured vehicles.”
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