Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Friday, 25 October 2013

House Probe: Oduah Approved N403m Above Budget for Cars

110713N.-Stella-Oduah-New.jpg - 110713N.-Stella-Oduah-New.jpg

The vehicle purchase scandal rocking the Nigeria Civil Aviation Authority (NCAA) got messier yesterday, as it emerged that the two BMW armoured cars and other operational vehicles bought by the agency gulped a total of N643 million, being N403 million above the N240 million stipulated in the 2013 Appropriation Act.
In the initial budget proposal submitted to the National Assembly, the NCAA had requested the sum of N140 million for the purchase of two bulletproof cars at the cost of N70 million per unit.
When this request was turned down, the parliament approved the sum of N240 million only for the purchase of operational vehicles.
However, evidence brought before the House Committee on Aviation probing the controversial armoured car deal yesterday showed that though the budget provided for a total of 25 operational vehicles, the NCAA turned around to procure a total of 54 vehicles, including the BMW armoured cars at triple the cost of what was provided in the budget for the vehicles.
Chairman, House Committee on Aviation, Hon. Nkeiruka Onyejeocha, expressed anger that the NCAA committed public funds to such a deal in contravention of the budgetary approvals made by the National Assembly.
Onyejeocha and other members of the committee raised a number of questions as to the legality of the transaction and whether it followed due process.
However, at the opening of the investigation, there was some buck passing as the Director General, NCAA, Capt. Fola Akinkuotu, said most of the decisions leading to the controversial purchases were made prior to his assumption of duty as the agency's boss.
The lot fell on the Director of Airspace   in NCAA, Mr. Joyce Nkemakonam, to explain the role of the agency since he was in the saddle when the decisions were made.
Nkemakonam's testimony raised a lot of dust when he insisted that the transaction followed due process as it received the approval of the Ministry of Aviation. He however had difficulties providing evidence for his claims.
He also had difficulties wriggling out of the questions pertaining to the flouting of the Appropriation Act and Section 80 of the Constitution.
In its testimony, the Bureau of Public Procurement (BPP) told the committee that it had no information on the said purchase of the two bulletproof cars.
Mr. Ayo Adegbile, who represented the Director-General of BPP, Mr. Emeka Ezeh, said it had no documents to present because the purchases did not pass through the due process office as prescribed in the Public Procurement Act.
According to him, a procurement of that magnitude ought to have been passed and approved by the Federal Executive Council (FEC).
He explained that going by the extant rules and a circular from the Secretary to the Head of Service of the Federation, procurement from N100 million upwards should be approved by FEC, while only those below that threshold could pass through ministerial tenders boards.
The committee had some initial problems deciding on whether or not to conduct the investigation in the absence of the Minister of Aviation, Ms. Stella Oduah, who was away in Israel on official assignment.
Permanent Secretary in the Ministry, Mr. George Ossi, had explained that Oduah would not be available till after next Monday because she was away signing the Bilateral Air Service Agreement (BASA) deal with her counterpart in Israel.
Other stakeholders such as the Nigeria Customs Service and First Bank Nigeria Limited were also absent, while Coscharis Motors was partially represented but had no presentations because the firm got the invitation late and its top level managers were outside the country.
Given the absence of key invitees and the short notice, the Aviation Committee resolved that Oduah and these other stakeholders should appear before it to give oral and documentary evidence next Tuesday.

Tuesday, 13 August 2013

E DON HAPPEN ---> FG Can’t Meet ASUU’s Demands, Says Okonjo-Iweala



If the words of the Minister of Finance, Dr.
Ngozi Okonjo-Iweala are to be believed, the
five-week old strike action by the Academic
Staff Union of Universities (ASUU) may not
be resolved anytime soon as she declared
that government has no resources to meet the union’s demands. Speaking earlier today in Minna at the
annual National Council on Finance and
Economic Development meeting with
theme, “Restructuring Nigeria’s Finances”,
Mrs. Okonjo-Iweala explained that the
striking university lecturers were asking for N92 billion in extra allowances; an obligation
the Federal Government cannot meet as it
moves to reduce the structure of public
expenditures. According to the coordinating minister for
the economy, “At present ASUU wants the
government to pay N92 billion in extra
allowances when resources are not there
and when we are working to integrate past
increases in pensions. We need to make choices in this country as we are getting to
the stage where recurrent expenditures
take the bulk of our resources and people
get paid but can do no work.” She argued that if the demands of the
striking lecturers are met and “we continue
to pay them salaries and allowances, we will
not be able to provide infrastructure in the
universities.” The minister noted that when she assumed
office “the share of recurrent expenditure
in our total budgets had increased
astronomically. “ “In fact recurrent expenditures accounted
for about 77.2 per cent of the federal
budget and we are now working to re-
balance this ratio,” she added.