FG Uncovers N3.7bn Scam in FAAN
Yuguda: Slok Airline remains banned
From Cletus Akwaya in Abuja
The Federal Ministry of Aviation has uncovered a scam of N3.7 billion from contracts awarded by the Federal Airports Authority of Nigeria (FAAN) and has already commenced moves to recover the monies from the people involved.
Giving account of his stewardship for the first half of the year, Aviation Minister, Mallam Issa Yuguda, disclosed that a committee set up to review about 2,059 contracts awarded by FAAN had submitted a report which helped the Federal Gover-nment save N3, 779, 497, 171.36 from the contracts.
He said from the report, the total debt profile of FAAN was established to be N11, 396, 311, 039.77 instead of the N12 billion earlier reported.
Yuguda, at a ministerial briefing hosted by Minister of Information and National Orien-tation, Chief Chukwu-emeka Chikelu, said some of the contracts being reviewed were awarded to satisfy some extraneous requests and in most cases not in accordance with the procedures and regulations governing award of contracts in the public service.
The Minister disclosed that a number of measures have been initiated to implement the report with the approval of President Olusegun Obasanjo. Some of the measures he gave as "stoppage of payment of spurious contracts worth N2.2 billion, change of purchasing policy" and reorganization of both the audit and accounts departments to more effectively carry out their functions.
Yuguda also said investigation showed that FAAN was operating 12 bank accounts against the three recommended by the office of the Accountant General of the Federation. He added that the FAAN failed to obtain ministerial approval for loans it took amounting to N1.33 billion as at September 30, 2003 and for which staff pensions funds were pledged as lieu to obtain the facilities.
"In the light of its findings, disciplinary actions would be meted out to those who took the loans, while "illegal (bank) charges which include interest, brokerage commissions and management fee amounting to N716, 626, 559.43 should be refunded to FAAN."
"Furthermore, the sum of N675 million, being pension funds and $1,000,700 domiciliary account being held by banks should also be recovered and credited to FAAN's accounts," Yuguda added.
Meanwhile, Yuguda said Slok Airline remained banned for breaking the guidelines for airline operators.
"I have revoked the licence of Slok Airlines and I have explained to Nigerians why I did it. There was a serious breach of the regulations, and all airlines that applied know what will happen to you. I've explained to Nigerians, I have been invited to the National Assembly and I explained it today. It is my responsibility as the number one regulator of the aviation industry to ensure that rules and regulations are complied with and to ensure that the laws that govern aviation industry are complied with.
"If in the course of doing my job, and I have to keep doing my job, if any airline breaches regulations that pose a threat to security. I will not hesitate to revoke their licenses, the law is not meant only for poor people, if you break the law, the law will break you," he said in response to a question.
The Minister's comments appeared to have sealed the hope for reprieve for the airline, owned by Abia State Governor, Chief Orji Uzor Kalu, and banned late last year for allegedly using an unregistered aircraft in its fleet as well as alleged engagement of unqualified personnel.
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