N255million car scandal: Oduah’s 12 sins by Reps panel

A fresh insight into the report of the House of
Representatives Committee on Aviation on the
probe of the controversial two armoured
cars shows that 12 infractions are standing
against the name of embattled Aviation Minister
Stella Oduah.
The vehicles were bought at a total cost of
N255 million by the National Civil Aviation
Authority (NCAA) allegedly for the minister in
violation of due process.
Both the minister and the agency have denied
any breach of the rules and said the vehicles
were for operational use only.
However, the committee in its 20-page report,
which was laid before the plenary of the House
of Representatives on Thursday, said it traced
massive violations of the rules by the minister
in the transaction for 54 cars, including the
BMW armoured cars, by the NCAA.
The committee said it discovered that on April
25, 2013, the minister approved NCAA’s request
to procure 55 operational vehicles valued at
N564, 665,000.00.
The agency then went ahead to secure a loan
of N643, 088,250 for 54 vehicles.
But it could not explain what it wanted to do or
did with the balance of N78, 423,250.
The panel also said it could not trace one of the
disputed BMW cars based on the chassis
numbers on the receipt issued by Coscharis
Motors Limited.
The House has not fixed a date for the
consideration of the report.
The report reads in part: “The 2013
Appropriation Act provides for the purchase of
25 vehicles at the of N240,000,000 namely (i)
Toyota Pickup Hilux(5); (ii) Toyota Corolla(10);
(iii) Toyota Land Cruiser(5); (iv) Toyota Hiace
(3); and (v) Security Inspection Vehicles for
Safety/Security(2).
“That there was no appropriation for the
purchase of two (2) bulletproof (armoured
cars) in 2013 Appropriation Act.
“NCAA proposal for the purchase of the two
BMW armoured cars worth N140million was
earlier rejected by the Committee. What was
provided for in the budget were two security
vehicles for inspection of perimeter fence.
“That Hon. Minister of Aviation claimed that the
purchase of two (2) bulletproof BMW armoured
cars were provided for in the 2013 Budget of
the NCAA. This submission by the Hon.
Minister is incorrect.
“The 2013 Appropriation provides for two
operational/security vehicles for the inspection
of perimeter fences and not two (2) BMW
bulletproof cars as purported by the Minister
and NCAA.
“On April 15, 2013, the Nigerian Civil Aviation
Authority (NCAA) applied to the Hon. Minister of
Aviation via a memo NCAA/DG/04/1/13 for
approval to acquire a total of 51 operational
vehicles at a total cost of N564, 665,000.00.
“NCAA’s application was approved by the Hon.
Minister via a memo FMA/NCAA/ T44555/5.6/
T2/136 dated April 25, 2013. This approval
contradicts the following:
• The 25 operational vehicles approved in
NCAA 2013 Budget
• The approval value is above the limit of
Ministerial Tenders Board. Whereas the
approved revised thresholds for service wide
application pursuant to Section 16(2) Public
Procurement Act 2009(as amended) a
minister’s limit is N100million, in approving
N564, 665,000 as evidence Ref. No. /FMA/
T44555/S.6/T2/136. She was in breach of the
law.
• No evidence of Due Process was shown by
NCAA/Ministry of Aviation
“The Hon. Minister of Aviation also claimed that
the lease financing arrangement would ensure
that NCAA pays N100million by the end of 2013
fiscal year while the balance of N16million will
be paid in the following years.
“This amount according to the Minister fell
below what is required for the Federal Executive
Council (FEC) approval.”
The panel said that while documents from
NCAA indicated that on April 25, 2013
the minister approved the agency’s request to
procure 55 operational vehicles valued at
N564, 665,000.00, “there is no evidence to
show that the Hon. Minister presented NCAA’s
request to FEC for its approval.
“Furthermore, the attempt to procure now and
pay later is against the Extant Laws of the
Federation.”
On the armoured car which it claimed it could
not trace during investigation, the panel said:
“The stored receipt of NCAA in respect of the
two (2) BMW vehicles bears chassis No.
DW68044 and DW68032.
“Upon physical inspection of the vehicles in the
custody of NCAA by the Aviation Committee,
two BMW vehicles were cited and inspected
DW68011 and DW68044.
“The BMW vehicle with chassis number
DW68032 was not seen. Messrs Coscharis
explanation on this issue is not supported by
available documents.”
The panel made seven recommendations to the
House of Representatives as follows:
• Given the fact that the two BMW armoured
vehicles procured in the process were not
provided for in the 2013 Appropriation Law nor
was due process followed in their procurement,
the Ministry of Aviation and NCAA should
terminate with immediate effect all transactions
and loan agreement it entered into with First
Bank Nigeria Plc and all contracts awarded
thereto;
• That all monies so far spent on the entire
transaction should be recovered and returned
back to the Federation Account;
• The President, Federal Republic of Nigeria
should review the continued engagement of the
Hon. Minister of Aviation, Princess Stella
Oduah, having contravened the Appropriation
Act and Approved Revised Thresholds by
exceeding her approval limit of N100m with the
purchase of 54 vehicles value at N643m
• That EFCC and other relevant  anti-
corruption agencies should: (a) Further
investigate the discrepancies in the chassis
Number DW68032 of the vehicles on the one
reported to be delivered and the one inspected
by the committee; and (b) Further investigate
and if found wanting, prosecute all persons/
institutions involved in the transaction
• The former Acting DG, Mr. Nkemakola
Joyce, and Director of Finance, Mr. S. Ozigi,
should be sanctioned in accordance with the
Civil Service Rules for deliberately breaching the
2013 Appropriation Act/ Extant Laws of the
Federation
• That Coscharis Motors Nigeria Limited
should be investigated on the issue of waiver,
source and exact cost of the two BMW vehicles
supplied to NCAA;
• Coscharis should be made to pay the value
of the waiver into treasury account.