President Muhammadu Buhari has today directed the Economic and Financial
Crimes Commission (EFCC) to carry out investigation into the misconduct
established against some retired and serving officers of the Nigerian
Air Force and Nigerian Army.
Below is an official statement released by Garba Shehu, the
Presidential Senior Special Adviser on Media & Publicity, today in
Abuja and obtained by SaharaReporters;
"On the recommendation of the committee established to audit the
procurement of arms and equipment in the Armed Forces and Defence sector
from 2007 to 2015, President Muhammadu Buhari has directed the Economic
and Financial Crimes Commission (EFCC) to carry out further
investigation into the misconduct established against the following
retired and serving officers of the Nigerian Air Force and Nigerian
Army:
(1) Air Chief Marshal AS Badeh (Rtd)
(2) Air Marshal MD Umar (Rtd)
(3) Air Marshal AN Amosu (Rtd)
(4) Maj-Gen. ER Chioba (Rtd)
(5) AVM IA Balogun (Rtd)
(6) AVM AG Tsakr (Rtd)
(7) AVM AG Idowu (Rtd)
(8) AVM AM Mamu
(9) AVM OT Oguntoyinbo
(10) AVM T Omenyi
(11) AVM JB Adigun
(12) AVM RA Ojuawo
(13) AVM JA Kayode-Beckley
(12) Air Cdre SA Yushau (Rtd)
(13) Air Cdre AO Ogunjobi
(14) Air Cdre GMD Gwani
(15) Air Cdre SO Makinde
(16) Air Cdre AY Lassa
(16) Col N Ashinze
(17) Lt Col. MS Dasuki (Rtd)
Following the submission of the audit committee's second interim
report, President Buhari has directed the EFCC to investigate the roles
of the officers and the following companies and their directors in
fundamental breaches associated with the procurements by the Office of
the National Security Adviser (ONSA) and the Nigerian Air Force (NAF).
(1) Messrs Societe D’ Equipments Internationaux
(2) Himma Aboubakar
(3) Aeronautical Engineering and Technical Services Limited
(4) Messrs Syrius Technologies
(5) Dr Theresa A. Ittu
(6) Sky Experts Nig Ltd
(7) Omenyi Ifeanyi Tony
(8) Huzee Nig Ltd
(9) GAT Techno Dynamics Ltd
(10) Gbujie Peter Obie
(11) Onuri Samuel Ugochukwu
(12) Spacewebs Interservices Ltd
(13) Oguntoyinbo Tayo
(14) Oguntoyinbo Funmi.
(15) Delfina Oil and Gas Ltd
(16) Chief Jacobs Bola
(17) Mono Marine Corporation Nig Ltd
(18) Geonel Intergrated Services Ltd
(20) Sachi Felicia
(20) Mudaki Polycarp
(21) Wolfgang Reinl.
The breaches identified by the Audit Committee include
non-specification of procurement costs, absence of contract agreements,
award of contracts beyond authorised thresholds, transfer of public
funds for unidentified purposes and general non-adherence to provisions
of the Public Procurement Act.
Furthermore, the procurement processes were arbitrarily carried out
and generally characterized by irregularities and fraud. In many cases,
the procured items failed to meet the purposes they were procured for,
especially the counter insurgency efforts in the North East.
A major procurement activity undertaken by ONSA for NAF was that
concerning the contracts awarded to Societe D’ Equipment Internationaux
(SEI) Nig Ltd.
Between January 2014 and February 2015, NAF awarded 10 contracts
totalling Nine Hundred and Thirty Million, Five Hundred Thousand, Six
Hundred and Ninety US Dollars ($930,500,690.00) to SEI Nig Ltd.
Letters of award and End User Certificates for all the contracts
issued by NAF and ONSA respectively did not reflect the contract sums.
Rather, these were only found in the vendor’s invoices, all dated 19
March 2015. Additionally, some of the award letters contained misleading
delivery dates suggesting fraudulent intent in the award process. The
observed discrepancies are in clear contravention of extant procurement
regulations.
The SEI contracts included procurement of two used Mi-24V
Helicopters instead of the recommended Mi-35M series at the cost of One
Hundred and Thirty Six Million, Nine Hundred and Forty Four Thousand US
Dollars ($136,944,000.00).
However, it was confirmed that the helicopters were excessively
priced and not operationally air worthy at the time of delivery. A brand
new unit of such helicopters goes for about Thirty Million US Dollars
($30m).
Furthermore, the helicopters were delivered without rotor blades and upgrade accessories.
Additionally, the helicopters were undergoing upgrade while being
deployed for operation in the North East without proper documentation.
It was further established that as at date, only one of the helicopters
is in service while the other crashed and claimed the lives of two NAF
personnel.
The Committee established that ONSA also funded the procurement of 4
used Alpha-Jets for the NAF at the cost of Seven Million, One Hundred
and Eighty Thousand US Dollars ($7,180,000.00). However, it was
confirmed that only 2 of the Alpha-Jet aircraft were ferried to Nigeria
after cannibalization of engines from NAF fleet.
This is contrary to the written assertion of the former Chief of
Air Staff, Air Marshal AN Amosu to the former NSA that all the 4
procured Alpha-Jets aircraft were delivered to the NAF.
The non-militarisation of the Alpha-Jets made them unsuitable for
deployment to the North East and they are currently deployed only for
training at NAF Kainji.
Furthermore, the procurement of the Alpha-Jets was contrary to the
recommendation of the assessment team. The Committee found that the
conduct of Air Marshal Amosu was deliberately misleading and
unpatriotic.
The contract for the procurement of 36D6 Low Level Air Defence
Radar for the NAF was awarded to GAT Techno Dynamics Ltd in April 2014
at the cost of Thirty Three Million US Dollars ($33m) and was funded by
ONSA.
The Committee established that the radars were excessively priced
as a complete set of such radars (comprising 6 radars including the
Control Centre) goes for Six Million US Dollars ($6m) averagely. The
Committee observed that the radars were delivered without the vital
component of Identification Friend or Foe (IFF) that distinguishes
between own and adversary aircraft, which has significantly degraded the
operational capabilities of the NAF in the North East.
It was further observed that the sum of Three Million, Three
Hundred Thousand US Dollars ($3.3m) was fraudulently included in the
contract agreement as VAT and With Holding Tax and subsequently paid
into the bank accounts of Spacewebs Interservices Ltd and Delfina Oil
and Gas Ltd.
The Committee further established that Two Million US Dollars ($2m)
from the proceeds was transferred to Mono Marine Corporation Nig Ltd,
which is jointly owned by principal characters in this deal. The
Committee opined that the infractions of extant regulations by these
companies were clearly intended to defraud.
It was established that between September 2009 and May 2015, the
NAF expended about Fifteen Billion Naira (N15bn) on the maintenance of
its Alpha-Jets, C-130H aircraft and Mi-24V/35P helicopters. Out of this
amount, Four Billion, Four Hundred and Two Million, Six Hundred and
Eighty Seven Thousand, Five Hundred and Sixty Nine Naira, Forty One Kobo
(N4,402,687,569.41) was paid out for contracts not executed.
It was also observed that in carrying out these maintenance
activities, contracts worth over Two Billion, Five Hundred Million Naira
(N2.5bn) were awarded to Syrius Technologies, a Ukrainian company that
was not registered in Nigeria. Regrettably, in spite of these
expenditures, the status of NAF fleet remained operationally appalling
as only 3 Alpha-Jets, 2 C-130H and one each of Mi-24V and Mi-35P were
serviceable as at 28 May 15.
In October 2013, NAF awarded contracts to DICON for the supply of
weapons and ammunition at the cost of Five Hundred and Ninety Nine
Million, One Hundred and Eighteen Thousand Naira (N599,118,000.00).
However, only 2 of the 7 items contracted were delivered to NAF while
the outstanding 5 items remained undelivered despite repeated requests
to DICON.
The Committee also found that the delivered ammunition were about
40 years old, thereby casting doubts on their shelf life. The failure of
DICON to fully execute the contract and the delivery of aged ammunition
diminished the capacity of the NAF in North East operation.
The Committe uncovered insider dealings by military officers in
procurement activities undertaken by ONSA and the NAF. The officers were
found to have misused or abused their offices for personal gains by
influencing award of contracts to private companies in which they have
substantial interests.
For instance, an officer serving in the ONSA used his office to
secure 2 contracts for his company, Geonel Integrated Services Ltd, for
the protection of 20 Dams and Presidential Air Fleet security at the
cost of Six Billion, Two Hundred and Fifty Million Naira
(N6,250,000,000.00) and Five Million US Dollars ($5m) respectively.
Furthermore, some NAF officers used their companies to collect VAT
and With Holding Tax that were never remitted to FIRS while another
officer was found to have cross transferred about Five Hundred Million
Naira (N500m) between a NAF company, Aeronautical Engineering and
Technical Services Limited, SkyExperts Nig Ltd and Huzee Nig Ltd,
companies in which he had personal interests.
It would be recalled that in its First Interim Report, the
Committee on Audit of Defence Equipment established that the sum of Six
Hundred and Forty Three Billion Naira (N643bn) and Two Billion, One
Hundred Million US Dollars ($2.1bn) interventions were received for
defence procurements by DHQ and the Services between 2007 and 2015.
In continuation of its assignment, the Committee has so far
established that the nation spent about Twenty Nine Billion Naira
(N29bn) and Two Billion US Dollars ($2bn) on NAF procurement activities
alone."
Garba Shehu,
SSA to the President
(Media & Publicity)
January 15, 2016.
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