Members of the House of
Representatives Aviation Committee probing the purchase of the two armoured
vehicles by the NCAA yesterday flared up at officials of the agency for
allegedly evading some questions.
The committee turned down an attempt
by the NCAA to bring in a financial expert to answer questions on the deal.
Committee Chairman Nkiruka
Onyejeocha told the authority’s acting Director General Joyce Nkemakolon: “As
acting DG and chief accounting officer, you did not deem it fit to consult a
financial expert while making your decision to procure the two vehicles. It is
too late in the day to now call in a financial expert.”
The committee also did not take
kindly to the documents presented by the management of the agency to back up
its case.It said the documents did not look real.
Onyejeocha said: “This matter won’t
end here because when we come to the papers, going by what you submitted to us,
most of them are more or less pro-forma invoices and some look like they were
downloaded from the Internet, not real receipts.
“We are going to ask you to bring
the receipts of all the transactions you have done in NCAA from January to date
because we have not seen anything to show us that they are the real receipts.
“This will not end here.If we cannot
get the bulk of what we are looking for from you, we are going to send our own
people to go and look at your records from January to date.
“It is after we are in possession of
those documents that we can now call on your financial expert because what you
submitted is not the true reflection of what actually happened over the
period.”
A member of the probe panel, Mathew
Omegiara, accused the acting DG of showing disrespect to the panel by
suggesting that the organisation’s Director of Finance, Mr, Ozigi, should
respond to some questions on the deal.
The Rep snapped: “You are learned
enough to know that you can’t spend above certain limits and also that the
minister cannot give approval beyond certain limits.”
The NCAA, in the documents submitted
to the committee, disputed claims by the Bureau of Public Procurement (BPP)
that its purchase of the two cars breached regulations.
The NCAA insisted that it adhered to
the procurement laws in the deal.
The BPP had said the purchase,
having been in excess of N100million, ought to have been approved by the
Federal Executive Council (FEC) and not the Ministerial Tenders Board.
However, the aviation agency
insisted yesterday that the Appropriation Act 2013 was not breached as what was
required to pay for the two vehicles is below the appropriated benchmark for
the year.
Besides, it noted that towards the
effective implementation of its statutory regulatory responsibilities , it is
imperative that it is fully equipped with highly specialized tools and
facilities, including adequate operational vehicles to cover all 22 national
airports and over 400 airstrips.
It said: “To acquire the vehicles,
lease financing was adopted. Lease financing is one of the ways of acquiring
fixed assets in both public and private sector organizations. NCAA embarked on
lease financing in line with prudential cash flow management.
“Leasing improves cash flow and
enables an organization enjoy an asset before fully paying for it. This
approach minimizes the effect of initial capital outlay that occurs if outright
cash purchase is embarked upon.”
It explained that having identified
the need for the controversial cars,it wrote a letter on April 15,2013 to the
Ministry of Aviation to seek approval for the procurement. “On the 25th’ of
April, 2013, Federal Ministry of Aviation conveyed approval for the acquisition
of the operational vehicles through lease financing. “On the strength of the
above letter of approval from Federal Ministry of Aviation, the list of all
banks in Nigeria was obtained on 7th May, 2013 and were circulated with a
Request for Expression of Interest on the financing of the lease. E01 was
adopted because the procurement is two sided. First, the financier would have
to be selected before the supplier is determined. “This is in line with
procurement best practices. “On 24th May, 2013 the Request for Expression of
Interest (EOT) was publicly opened and minutes of the opening exercise were
documented. “The Evaluation of the Expression of Interest was held on 31st May,
2013 during which First Bank PIc, Union Bank Pic and Stanbic IBTC emerged
responsive. “ It said that the three banks were invited on June 10 to submit
financial proposals with First Bank emerging the highest rated responsive
bidder. That was followed by receipt of invoices from “a credible motor vehicle
dealers during which only Coscharis Limited quoted for BMvV Armoured Vehicles.
“On 28 June, 2013 NCAA Parastatal Tenders Board approved the selection of First
Bank for the Lease Financing as well as Metropolitan Motor Vehicles and
Coscharis for the supply of the vehicles. “This approval is predicated on the
due process documentations so far done. “Between 8th July, 2013 and August,
2013 various meetings were held with First Bank, contract agreement was signed
and necessary documentations were carried out. “On 13th August, 2013, suppliers
of the vehicles were contacted on the instance of First Bank. “Payment for the
vehicles is in 36 equal monthly instalments, out of which only two have been
paid as at 21 October, 2013.”
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