Teddy Oscar, Abuja
The minister of aviation, Princess Stella Oduah, has finally broken her silence on the controversy surrounding the bulletproof BMW cars that were allegedly bought for her by the Nigerian Civil Aviation Authority (NCAA) for $1.6 million (about N255 million).
Oduah, who was to appear before the House of Representatives’ Committee on Aviation investigation on the first day of the hearing last Thursday, could not do so because she was away to Israel on national assignment with President Goodluck Jonathan to conclude negotiations on the Bilateral Air Service Agreement (BASA).
The minister, who finally made her appearance at the National Assembly on the Day-3 of the hearing on Thursday, refuted the allegation that the bulletproof cars were bought for her.
She regretted that efforts to clear the air on the situation further complicated matters.
“In the last few weeks, i have received all sorts of bashings in the media. Many persons have also risen to my defence. Many have abused me, some out of a genuine sense of outrage that I allegedly spent the sum of $1.6 million of government funds to purchase for myself two number bulletproof BMW cars for my personal use. You may recall that there have been attempts at clarifying issues pertaining to this particular procurement. In the process, some of the issues were further muddled up,” she observed.
Speaking before the committee, the embattled minister, who also denied that NCAA did overspent on its 2013 appropriation for vehicles, explained that NCAA has only planned its budget in such a way that its cash flow is able to accommodate spending.
“The media has been awash with the purported spending of monies by the NCAA to the tune of $1.6 million (N255 million) and other figures on the purchase of vehicles by the NCAA. Honourable chairman, it is not true that the NCAA has spent such amount of money on purchase of vehicles. It is also not true that the NCAA has purchased two bulletproof BMW vehicles for the honourable minister of aviation.
“Honourable members, as pointed above, my understanding is that what the NCAA has done is to plan for the acquisition of vehicles for the next three years within the MTEF (Medium Term Expenditure Framework) through lease financing arrangement with First Bank Plc. Under this arrangement, NCAA would have paid N100 million by the end of fiscal year 2013.
“The sum is below the appropriated amount of N240 million and less that what is required for FEC (Federal Executive Council) approval. It would appear that what the NCAA has done within the framework of the MTEF and its desire to be prudent, is to plan its budget in a manner that the cash flow of the authority is able to accommodate spending,” she explained.
Oduah also observed that the purchase of the bulletproof cars were dully appropriated in the 2013 Budget by the National Assembly.
“Honourable members, another falsehood in the public domain relating to this lease financing arrangement is that the NCAA purchased two bulletproof vehicles for me as the minister of aviation. This is totally false. The two number security/safety BMW vehicles, which the NCAA acquired, are for the security and safety as appropriated by the NASS in the 2013 Budget in Item 6.
“The title documents, which are in the names of NCAA/First Bank Plc, as well as spare keys of all the vehicles purchased under the lease financing arrangement are currently with First Bank of Nigeria Plc, as is the case with such arrangements and best practice,” she said.
Oduah, who further defended the reason behind the purchase of the two bulletproof cars, said that they were necessary for international and regional organisations’ uses.
“With the appointment of a new director general, restructuring of the agency, the need for additional operational tools, including vehicles became imperative. Moreover, the fact that NCAA, as the regulator of the industry, often plays host to dignitaries from ICAO and a host of other international and regional organisations made it imperative to have various specifications of operational vehicles, including the purchase of the two numbers security/safety vehicles,” she added.
Oduah, who hinted that NCAA is committed to First Bank Plc to only the tune of N100 by December 31, contrary to the speculated N116 million, said that the N643 million deal between NCAA and First Bank Plc was not an obligation per se.
“It is also my understanding that the deal between the NCAA and First Bank of Nigeria Plc, which came to a total sum of N643 million is a mere understanding and not an obligation. That is why it is included in the Medium Term Expenditure Framework, which could be called off in the event that two parties decide to discontinue; hence, all title documents are in the joint names of NCAA and First Bank of Nigeria Plc.
“It is my understanding that by the end of this year, the total amount to be paid by NCAA to First Bank of Nigeria Plc will be N100 million only, based on an understanding the NCAA has with the bank, and the balance of N16 million only will be paid in the following year,” she added.
