How Stella Oduah's Ministry Inflated Car Purchases From N240m To N643m

IT was revelations galore, yesterday, as former Acting Director-General of Nigeria Civil Aviation Authority, NCAA, Mr Joyce Nkemakolam told House of Representatives members how the approved budget of N240 million for cars was jerked up to N643 million by the Ministry of Aviation.

The former acting D-G made the revelation before the House Committee on Aviation investigative hearing into the purchase of BMW bullet proof cars at N255.15 million allegedly bought for the Minister of Aviation, Princess Stella Oduah.

Also, members of the committee demanded that the Aviation Minister must appear before the committee next Tuesday or face sanctions.

Her non-appearance made the lawmakers order the Permanent Secretary of the Ministry, Mr George Ossi and officials of Accident Investigation & Prevention Bureau, AIPB out of the hearing.

A representative of the Bureau for Public Procurement, Mr Ayo Adedipe told the committee that none of the purchases was brought to the notice of the agency.

Chairperson of the committee, Rep Nkiruka Onyejeocha simply said: “AIB, you are not wanted here until we start investigations on crashes, and as for the Permanent Secretary, leave here since the Minister is not here.”

The total sum approved in the 2013 budget for vehicles was N240 million but the agency has committed the sum of N643 million to the purchase of operational vehicles.

The Acting DG was put in the lime light as the substantive D-G washed his hands off the issue as he told the committee he was not in office when the issue of the budget implementation started and that the process of purchase of the vehicles started during the tenure of the acting D-G.

The lawmakers noted that the security vehicles approved for the NCAA was for monitoring of the perimeter fences of airports, which the BMW bullet-proof cars were not suitable for. The committee also reminded the agency that its initial 2013 budget proposal only contained the request for bullet-proof vehicles which was rejected at the point of budget defence.

On the purchased BMW cars, Nkemakolam in his unsigned presentation, said: “Due to the impromptu departure of the former D-G, who started this process since 2012, I inherited all these things. The utility vehicles are purchased annually to service the 22 airports in the country and due to old age there is need to acquire new ones.

“The bullet-proof cars were bought so that we can  use them when the country hosts dignitaries from IATA,, ICAO and other international bodies and it was through lease financing.

“We sent a letter to the Ministry on April 5 and got approval on April 15 to go ahead with the lease financing in line with best procurement practices. First Bank, Stanbic and Union banks emerged as potential lessors for the 54 cars at N643,88,250.00million.

“First Bank eventually won and we were expected to complete the payment in 36 months before we finally own the vehicles. In conclusion, I wish to point out here that we are expected to pay N23,249,181.00 million monthly, so ownership of the vehicles is still with First Bank.”

The Chairperson, at this juncture, asked him:”So you got approval from the Ministry of Aviation and you know what Section 84 of the constitution says, that you cannot withdraw from the consolidated account  or any public fund without recourse  to the National Assembly?”

A member of the committee, Zakari Mohammed also asked the current D-G to tell members when he resumed and when his employment was consummated and “when did you take over from the acting D-G? The story is slightly different now as it appears you have two different budgets. We also want all the bank statements and transactions in the last six months submitted.”

The new D-G, Fola Akinkuotu said: “I was nominated on March 14 and confirmed July 25 but resumed on August 14.”

Another member, Rep Jerry Manwe asked the acting D-G that since  N240 million was approved for 25 cars which he had jerked up to 54,  who authorised him to do these things?

The acting D-G  could not provide any glaring answer and all he could do was to ask for assistance from the Director of Finance, Mr Nuhu Ozigi but the members turned down his request. They insisted that the presentation which he had to eventually sign was in his name.

In the document submitted to the committee the agency admitted that the 2013 budget approved for five Toyota Hilux Pickup vans, 10 Toyota Corolla cars, five Toyota Land Cruiser SUVs, three Toyota Hiace buses, all at a cost of N240 million but eventually they bought 54 vehicles through the bank lease for the sum of N643 million which was financed by the bank.

It was also discovered by the committee that the financing agreement between the agency and the bank showed that NCAA was to repay the sum with an interest of about N500 million to be paid on the N643 million within 36 months. Two months instalments on the repayment, the agency said, have been made to the financing bank.

When asked by the committee on the propriety of committing the 2014 and 2015 budgets  to repayment of excess debt incurred illegally in the process of implementing the 2013 budget, the agency could not provide any answer.