Nigeria truly appears to be a cesspit of corruption where public funds are fraudulently carted away, and with impunity by those placed in positions of authority.
In what seems a continuation of this trend, the Federal Airports Authority of Nigeria (FAAN) squandered a whopping N228 million to repair three (3) generating sets at the Nnamdi Azikiwe International Airport (NAIA), Abuja, an amount which at the time of the repair, could have bought four brand new generators of equal capacity (1250KVA) as those repaired.
The money, it was learnt was hurriedly approved by the management and paid upfront to the contractor; Julius Berger Nigeria Plc against “all known financial rules” as observed by O.K. Bello, the chief internal auditor of FAAN, in his memo to the acting general manager (audit), dated May 28, 2009 objecting to the deal.
Whereas a letter seeking ministerial approval for the contract to repair the generators - Nos 2,3 and 4 at the airport, was forwarded to the then minister of aviation, Fidelia Njeze, on May 14, 2009, and approved by the minister in a letter signed on her behalf by M. Ayo Akindeko, to the then managing director of FAAN - Richard Aisuegbeogun, on May 18, 2009, the chief internal auditor of the authority was made privy to the deal on May 28, 2009, after payment had been approved and the accounts department raised voucher and payment certificate issued in favour of Julius Berger, on the recommendation of director of airport safety and engineering services on May 22, 2009.
Documents seen by BusinessDay showed that the chief auditor, in a letter dated May 28, 2009 and forwarded to the acting general manager (audit) observed as follows: That “N228 million cost of repair of the generators is above ministerial approval level, and will need President in Council approval.
“Due process certificate is not attached to payment voucher prepared by the Account Department.
“Letter of award is also not attached to the file.
Paying N228 million before job is done implies that ‘we are paying 100% advance payment; this is against all known financial rules’.
That quotation obtained from John Holt Engineering showed that Lister or Perkings of same capacity brand new will cost N55.6 million per generator set”.
Going by the documents obtained by BusinessDay, the N228 million, as at the time of the transaction, could have been used to purchase four brand new Lister or Perkings generating sets of same capacity at the cost of N55.6 million per unit.
Bello also left a note of warning: “With all these observations if you still want us to treat the file, please direct further”. And from all documents seen by BusinessDay on the transaction, the chief internal auditor was by-passed.
As has become the case in the nation’s public sector, FAAN opted for repairs at a higher cost totaling N206 million, less Value Added Tax (VAT) and Withholding Tax (WAT).
The deal was executed when the current managing director of FAAN, George Uriesi was director of airport operations and Azuka Onyia was director of finance and accounts.
The huge sum of money squandered on generators which also guzzle diesel at prices which remain top secret, is done at the expense of the comfort of passengers whom the airports are meant to serve.
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