Airports Contract Scam: House of Reps Allege Widespread Fraud Among Jonathan’s Cabinet Members

8 Min Read
Stella Oduah

Serving ministers own some of the companies handling contracts in airports scattered across the country, the chairman, House of Representatives Committee on Anti-Corruption, Values and Ethics, Honourable James Faleke, has disclosed.

Faleke, in an exclusive interview with Sunday Tribune, maintained the stand of the House to expose everyone involved in unethical practices in the aviation industry, saying; “On the aviation contracts that we are probing, we went to the Corporate Affairs Commission and found out that most of the companies handling the contracts awarded are ministers’. Even if that is the only thing we would achieve in this House, we will expose everybody involved in this aviation corruption.”

He noted that a particular contract was “to provide new security strategy for airports at the cost of N9.4 billion and they have paid N6.247 billion to this contractor. This is just one out of about 100 cases. The issue is this; what is new security strategy? When they say aviation is working, the issue is; at what cost? And then, a contractor that is asked to renovate Enugu Airport is the same that is asked to renovate Port Harcourt and Kano airports. And these are contractors without pedigree.”

Meanwhile, Honourable James Abiodun Faleke represents Ikeja Federal Constituency of Lagos State in the House of Representatives where he chairs Committee on Anti-Corruption, Values and Ethics. In this interview with KOLAWOLE DANIEL, he speaks on his committee’s readiness to probe award of contract in the aviation sector, issue of plea bargain, among others. Excerpt:

WHAT was the outcome of the probe of the expenditure of SURE-P road project by the House of Representatives?
We started by looking at the expenditure of SURE-P, especially as it concerns road contracts and based on the petitions we receive that the payments that were made to most of those contractors were fictitious. And so, we went into it and discovered that those petitions had no grounds; we saw the details of the contracts; the certificates of completion.

Along the line, we discovered issues that were actually not part of the petition; that most of our contractors handling projects got the contracts at a lower value and in between the execution, the contracts were reviewed, at times, two three times higher than the original cost. I think it is a ploy used mainly as part of the corruption tactics. We are writing our own report to the House. During that period too, the minister of works actually came up with a press briefing to say that they had completed 32 federal roads and we felt if you had completed 32 federal roads, where were the roads? Let Nigerians get to know, and so, what we did was to write the minister and he responded and we advertised the roads in the newspapers for Nigerians to make comments on.

So, we are waiting because we can’t go round; we don’t even have the votes to confirm whether actually these roads are there or not. But if after investigating the documents, we are so sure that it is necessary for us to go and see, we will write to the leadership for funding. Ours is a committee that has no fund, but we can write to the leadership and I am sure they would approve it for us.

Again, what informed the decision of the House to probe the Economic and Financial Crimes Commission (EFCC) over the seizure of offenders’ properties?
All Nigerians know that so many corrupt officials have been tried and properties seized, either by the courts or by the EFCC and as of today, we are unable to account for these properties and the money so seized. The question is if a fraudulent person is arrested and tried and found guilty and he paid back the sum, where is this money going to? Has it gone to the federation account? These are the issues. Who is holding them? Before you know it, it changes hands and goes to the wrong hands and you just discover that you have not won any battle at all.

What is your take on the plea bargain issue?
For me, and for us in the committee, that is the worst thing that has happened in the fight against corruption in this country. I don’t know where they brought this issue of plea bargain from. For us, it is an impediment to fighting corruption because it is telling the citizenry to steal whatever they can steal and if they go to court they can negotiate their way out of the problem. We are against it and we will continue to fight against it.

Is that why Nigeria’s rating on the corruption index is not improving?
It is all about impunity with which we do things in the country. I am actually looking into the Bureau of Public Procurement (BPP) Law that allows this bureau to give no objection certificate. All agencies are using this loopholes of no objection certificates to issue contracts of N20 billion without advertising it through selective tendering. They would write to the BPP and they would approve.

We are investigating aviation now. Through selective tendering, aviation awarded a contract worth N12.8 billion. Selective tendering is supposed to come in a situation where those contractors are the only ones that have those items or have capacity to do the job. In other words, if I give the job to contractor B and he does not have the capacity, we still have to go back to contractor A who has the capacity or is the sole representative of the manufacturers in this country.

Everybody is saying aviation is working; at what cost? We have got a petition and we have written letters to authorities in aviation; we have asked them to submit documents to us. We have written the contractors because we are aware that so many of the contractors had been paid since 2012 and yet, they have not started any project. There was this particular contract that was awarded to MSI-Security Nigeria Limited on 20/09/2012. The contract is to provide new security strategy for airports at the cost of N9.4 billion and they have paid N6.247 billion to this contractor. This is just one out of about 100 cases. The issue is this, what is new security strategy?

Read more at Tribune

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