A
panel investigating Defence equipment procurement between 2007 and 2015 has
uncovered massive fraud in Army contracts.
The
Committee on Audit of Defence Equipment Procurement (CADEP), headed by Air Vice
Marshal Jon Ode, which submitted its third interim report to President Muhamadu
Buhari last week, recommended further investigations, which the president has
approved.
To
be investigated are two former Chiefs of Army Staff – Lt.-Gen. Azubike
Ihejirika and Lt.-Gen. Kenneth Minimah.
Sixteen
other retired and serving army officers are also to be probed, besides 12
serving and retired public officials and 24 Chief Executive Officers of
companies involved in the procurement of equipment.
They
are: 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 Mr. E.O, Oyemomi.
The
CEOs to be investigated include Col. Olu Bamgbose (retd.) of Bamverde Ltd; Mr.
Amity Sade of Doiyatec Comms Ltd and DYI Global Services and Mr. Edward
Churchill of Westgate Global Trust Ltd.
A
statement last night by the Committee gave the total amount spent on
procurement and operations within the period as N185,843,052,564.30 and
$685,349,692.49.
The
panel found that Army contracts were awarded by the Ministry of Defence without
‘’significant input from end-user (Nigerian Army) and to vendors who lacked the
necessary technical competence.
‘’As
an example, three 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 six units of 4X4 ambulances fitted with radios.
“The
committee discovered that the two companies collected N5,103,500,000.00,
representing 86 per cent of the total value of the three 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 five years after.
For
contracts awarded directly by the Army, the Committee found out that many were
characterised 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 two companies exclusively procured various types of Toyota
and Mitsubishi vehicles worth over N3,000,000,000.0 for the 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
two companies showed transfers to individuals related to then Chief of Army
Staff,’’ the report said.
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