Thursday, November 7, 2013

House Of Reps Aviation Committee Dismisses All Claims By Stella Oduah

The House of Representatives Committee on Aviation has concluded that
Mrs. Stella Oduah, the Minister, is a serial liar.
In a report on its investigation obtained by SaharaReporters, the
committee dismissed every single claim the Minister made during her
testimony to the committee earlier in the week concerning the purchase
of two bulletproof cars for her by the Nigerian Civil Aviation
Authority (NCAA).
It stressed there was no appropriation for the purchase of the two
armoured cars, and stressed that the NCAA proposal for the purchase of
the two MBW armoured cars was rejected.
"There was no provision for armoured vehicle in Nigerian law for a
minister in any event, any procurement for an armoured vehicle must be
provided for in the appropriation act and backed by relevant
approval," the report said.
The committee also noted that the Minister and the Director-General of
the NCAA claimed that both vehicles were purchased under a lease
agreement with First Bank plc.
"The assertion is not true because First Bank plc clearly stated that
they were procured under auto loan, this is clearly shown by the loan
agreement between NCAA and First Bank."
Furthermore, it said, "The document submitted shows that BMW chassis
No. DW68044 and DW68032 while on ground committee inspect BMW vehicle
chassis No. DW68044 and W68011 , the identity of W68011 is still
unknown to the committee because the vehicle chassis number did not
tally with the documents submitted."
Turning to other testimonies, the committed recalled that the Minister
of Finance, Dr. Ngozi Okonjo-Iweala, clearly stated in her
presentation that her Ministry did not approve any waiver for the two
vehicles.
"Coscharis Motors Limited claimed that the Federal Ministry of Finance
granted it import duty VAT, ETLS, CISS, and port charges waiver to
import two number bullet proof BMW armored cars, this claim is false.
The Hon. Minister of Finance in the testimony before the committee
stated that the Federal Ministry of Finance only granted waivers to
Lagos State Government through Coscharis Motors Limited in 2012 for
the importation of 300 units vehicles for use during the 2012 Eko
Games and that the waiver did not include the importation of two BMW
armored cars."
Similarly, both Mrs. Oduah and the DG of NCAA claimed in their
presentation that the procurement of the operations vehicles complied
with the relevant laws of public procurement, fiscal responsibility
and due process. This claim was countered by the Bureau of Public
Procurement assertion that it was not part of the transaction between
NCAA, First Bank and Coscharis Motors Limited to procure the
operational vehicles. Furthermore, no evidence at complying with due
process was shown however."
The committee further recalled that Mrs. Oduah also testified that the
lease financing arrangement would see NCAA pay N100m by the end of
2013 fiscal year while the balance of N16m will be paid in the
following year. The amount, according to the Minister, fell below
what is required for Federal Executive Council (FEC) approval.
"However, documents from NCAA indicate that on April 25th 2013, the
Hon. Minister approved the sum of N564, 665,000,00m. There is no
evidence to show that the Hon. Minister presented NCAA's request to
Federal Executive Council for its approval."
The committed observed that neither the Minister of Aviation and NCAA
submitted copies of necessary documents to validate the claim that the
transactions followed due process whatsoever.
"The pre-shipping inspection end-user certificate issued by the office
of National Security Adviser (NSA) to Coscharis Motors Limited is for
three nos armoured BMW 760 Li High Security vehicles with chassis
number DW68032, DW68044 and DW68047," the committee said.
"From the records Coscharis Motors delivered to the NCAA two nos
armoured BMW cars with chassis number DW68032 and DW68044, Coscharis
may have to explain the ownership and whereabouts of the third
armoured car with chassis number DW68047, since neither of the three
armoured cars had approval."
Full text of the findings in the 40-page report
Findings of House Committee on Aviation
1. Pursuant to purchase order Ref: No NCAA/DG /PROC/0708/Coscharis
dated 13th August 2013 NCAA procured the split of two MBW 760Li Bullet
proof vehicles along with 52 other vehicles from Coscharis and
Metropolitan Motors.
A total sum of N643.088.258m of N255, 150.00 was paid for the purchase
of two MBW vehicles. N643, 088,250.00 was provided by Messrs first
bank Nig. Plc under an auto loan agreement.
2. The 2013 Appropriation Act provides for the purchase of 25
vehicles at the cost of N240million namely Toyota Pickup Hilux 5nos,
Toyota Corolla 10nos, Toyota Land cruiser 5nos, Toyota Hiace Bus 3nos,
security inspection vehicles 2nos for safety / security purposes and
inspection of perimeter fence.
3. That there was no appropriation for the purchase of the two BMW
(armoured cars) in the 2013 Appropriation Act. The NCAA proposal for
purchase of the two BMW armoured cars was rejected, what was provided
for in the budget were two security vehicles for the inspection
perimeter fence.
4. There was no appropriation for the purchase of the two armoured
cars indeed NCAA proposal for the purchase of the two MBW armoured
cars was rejected
5. There was no provision for armoured vehicle in Nigerian law for
a minister in any event, any procurement for an armoured vehicle must
be in provided for in the appropriation act and back by relevant
approval
6. The Appropriation Act provides for two operational security
vehicle for the inspection of parameter fences and not BMW bullet
proof cars as purported by the Minister.
7. The Hon. Minister and the DG NCAA claimed that both vehicles
were purchased under a lease agreement with First Bank plc, the
assertion is not true because first bank plc clearly stated that they
were procure under auto loan, this is clearly shown by the loan
agreement between NCAA and first bank
8. The document submitted shows that BMW chassis No. W68044 and
W68032 while on ground committee inspect BMW vehicle chassis No.
W68044 and W68011 , the identity of W68011 is still unknown to the
committee because the vehicle chassis number did not tally with the
documents submitted.
9. The Hon. Minister of Finance in her presentation clearly stated
hat her ministry did not approve any waiver for the two BMW armoured
vehicles
10. The Nigerian Custom Service submitted documents
that negate his position
CONSULTANT'S FINDINGS
1. On April 15th 2013 the NCAA applied to the Hon. Minister of
Aviation via a memo NCAA/DG/D4/1/13 for approval to acquire a total of
55 operational vehicles at a total cost of N554, 655,000.00million,
NCAA's application was approved by the Hon. Minister in a memo
FMA/NCAA/T44555/5.6/T2/136 dated April 25th 2013, this approval is
against the:
i. 25 operation vehicles approved in NCAA 2013 budget
ii. The approval value is against the limit of a ministerial
tender board
iii. No evidence of due process was shown by NCAA /Ministry of Aviation
2. At the point of procurement NCAA preordered 54 operational
vehicles valued at N643, 088250.00million as against 55 operational
vehicles valued at N564, 565,000. 00m approved by the Hon. Minister.
3. The Hon. Minister of Aviation also claimed that the lease
financing arrangement will see NCAA pay N100m by the end of 2013
fiscal year while the balance of N16m will be paid in the following
year, this amount according to the minister fell below what is
required for Federal Executive Council (FEC) approval, however,
documents from NCAA indicate that on April 25th 2013, the Hon.
Minister approves the N564, 665,000,00m there is no evidence to show
that the Hon. Minister presented NCAA's request to Federal Executive
Council for his approval.
4. Coscharis Motors Limited claimed that the Federal Ministry of
Finance granted it import duty VAT, ETLS, CISS, and port charges
waiver to import two number bullet proof BMW armored cars, this claim
is false. The Hon. Minister of finance in the testimony before the
committee stated that the Federal Ministry of Finance only granted
waivers to Lagos State Government through Coscharis Motors Limited in
2012 for the importation of 300 units vehicles for use during the 2012
Eko Games and that the waiver did not include the importation of two
BMW armored cars.
5. Both the Hon. Minister and the DG of NCAA claimed in their
presentation that the procurement of the operations vehicles complied
with the relevant laws of public procurement fiscal responsibility and
due process. This claim was countered by the Bureau of Public
Procurement assertion that it was not part of the transaction between
NCAA, First Bank and Coscharis Motors Limited to procure the
operational vehicles. Furthermore, no evidence at complying with due
process was shown however.
6. Presentations for both the Hon. Minister of Aviation and NCAA did
not include copies of the following documents to validate the claim
that the transactions follow due process:
a. Copies of advertisement of solicitations for bids published in at
least two national newspapers and the website of NCAA as well as any
procurement journal
b. Copies of bids submission registers and duplicate copies of the
receipt issued to bidders on submission of bids
c. Minutes of public bidding for technical and financial proposal
including list of (CSOs) and professional observers
d. Copies of bids evaluation by the sub technical committees of the
tenders board
e. Copies of minutes of meeting of the tenders board approving the
winning bidder
f. Copies of bids rejection on notice if any
g. Copies of acceptance of bids issued by NCAA to the successful bidder.
h. Letter of notification of award of contract
i. Evidence of budgetary allocation for the procurement as approved
by the National Assembly
7. The pre-shipping inspection end-user certificate issued by the
office of National Security Adviser (NSA) to Coscharis Motors Limited
is for three no. armoured BMW 760 Li Security with chassis number
DW68032, DW68044 and DW68047.
From the records Coscharis Motors delivered to the NCAA two nos
armoured BMW cars with chassis number DW68032 and DW68044, Coscharis
may have to explain the ownership and whereabout of the third armoured
car with chassis number DW68047, since neither of the three armoured
cars had approval.

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