One of the recommendation of the committee established to audit the procurement of arms and equipment in the Armed Forces and Defence sector from 2007 to 2015, President Muhammadu Buhari has directed the Economic and Financial Crimes Commission (EFCC) to carry out further investigation into the misconduct established against the following retired and serving officers of the Nigerian Air Force and Nigerian Army:
(1)Air Chief Marshal AS Badeh (Rtd)
(2)Air Marshal MD Umar (Rtd)
(3)Air Marshal AN Amosu (Rtd)
(4) Maj-Gen. ER Chioba (Rtd)
(5)AVM IA Balogun (Rtd)
(6)AVM AG Tsakr (Rtd)
(7)AVM AG Idowu (Rtd)
(8)AVM AM Mamu
(9)AVM OT Oguntoyinbo
(10)AVM T Omenyi
(11)AVM JB Adigun
(12)AVM RA Ojuawo
(13)AVM JA Kayode-Beckley
(12)Air Cdre SA Yushau (Rtd)
(13)Air Cdre AO Ogunjobi
(14)Air Cdre GMD Gwani
(15)Air Cdre SO Makinde
(16)Air Cdre AY Lassa
(16)Col N Ashinze
(17)Lt Col. MS Dasuki (Rtd)
Following the submission of the audit committee's second interim report, President Buhari has directed the EFCC to investigate the roles of the officers and the following companies and their directors in fundamental breaches associated with the procurements by the Office of the National Security Adviser (ONSA) and the Nigerian Air Force (NAF).
(2)Air Marshal MD Umar (Rtd)
(3)Air Marshal AN Amosu (Rtd)
(4) Maj-Gen. ER Chioba (Rtd)
(5)AVM IA Balogun (Rtd)
(6)AVM AG Tsakr (Rtd)
(7)AVM AG Idowu (Rtd)
(8)AVM AM Mamu
(9)AVM OT Oguntoyinbo
(10)AVM T Omenyi
(11)AVM JB Adigun
(12)AVM RA Ojuawo
(13)AVM JA Kayode-Beckley
(12)Air Cdre SA Yushau (Rtd)
(13)Air Cdre AO Ogunjobi
(14)Air Cdre GMD Gwani
(15)Air Cdre SO Makinde
(16)Air Cdre AY Lassa
(16)Col N Ashinze
(17)Lt Col. MS Dasuki (Rtd)
Following the submission of the audit committee's second interim report, President Buhari has directed the EFCC to investigate the roles of the officers and the following companies and their directors in fundamental breaches associated with the procurements by the Office of the National Security Adviser (ONSA) and the Nigerian Air Force (NAF).
(1)Messrs Societe D’ Equipments Internationaux
(2) Himma Aboubakar
(3)Aeronautical Engineering and Technical Services Limited
(4)Messrs Syrius Technologies
(5) Dr Theresa A. Ittu
(6)Sky Experts Nig Ltd
(7)Omenyi Ifeanyi Tony
(8)Huzee Nig Ltd
(9)GAT Techno Dynamics Ltd
(10) Gbujie Peter Obie
(11) Onuri Samuel Ugochukwu
(12)Spacewebs Interservices Ltd
(13)Oguntoyinbo Tayo
(14) Oguntoyinbo Funmi.
(15) Delfina Oil and Gas Ltd
(16)Chief Jacobs Bola
(17)Mono Marine Corporation Nig Ltd
(18)Geonel Intergrated Services Ltd
(20)Sachi Felicia
(20) Mudaki Polycarp
(21)Wolfgang Reinl.
(2) Himma Aboubakar
(3)Aeronautical Engineering and Technical Services Limited
(4)Messrs Syrius Technologies
(5) Dr Theresa A. Ittu
(6)Sky Experts Nig Ltd
(7)Omenyi Ifeanyi Tony
(8)Huzee Nig Ltd
(9)GAT Techno Dynamics Ltd
(10) Gbujie Peter Obie
(11) Onuri Samuel Ugochukwu
(12)Spacewebs Interservices Ltd
(13)Oguntoyinbo Tayo
(14) Oguntoyinbo Funmi.
(15) Delfina Oil and Gas Ltd
(16)Chief Jacobs Bola
(17)Mono Marine Corporation Nig Ltd
(18)Geonel Intergrated Services Ltd
(20)Sachi Felicia
(20) Mudaki Polycarp
(21)Wolfgang Reinl.
The
breaches identified by the Audit Committee include non-specification of
procurement costs, absence of contract agreements, award of contracts
beyond authorised thresholds, transfer of public funds for unidentified
purposes and general non-adherence to provisions of the Public
Procurement Act.
Furthermore,
the procurement processes were arbitrarily carried out and generally
characterized by irregularities and fraud. In many cases, the procured
items failed to meet the purposes they were procured for, especially the
counter insurgency efforts in the North East.
A
major procurement activity undertaken by ONSA for NAF was that
concerning the contracts awarded to Societe D’ Equipment Internationaux
(SEI) Nig Ltd.
Between January 2014 and February 2015, NAF awarded 10 contracts totalling Nine Hundred and Thirty Million, Five Hundred Thousand, Six Hundred and Ninety US Dollars ($930,500,690.00) to SEI Nig Ltd.
Letters of award and End User Certificates for all the contracts issued by NAF and ONSA respectively did not reflect the contract sums. Rather, these were only found in the vendor’s invoices, all dated 19 March 2015. Additionally, some of the award letters contained misleading delivery dates suggesting fraudulent intent in the award process. The observed discrepancies are in clear contravention of extant procurement regulations.
Between January 2014 and February 2015, NAF awarded 10 contracts totalling Nine Hundred and Thirty Million, Five Hundred Thousand, Six Hundred and Ninety US Dollars ($930,500,690.00) to SEI Nig Ltd.
Letters of award and End User Certificates for all the contracts issued by NAF and ONSA respectively did not reflect the contract sums. Rather, these were only found in the vendor’s invoices, all dated 19 March 2015. Additionally, some of the award letters contained misleading delivery dates suggesting fraudulent intent in the award process. The observed discrepancies are in clear contravention of extant procurement regulations.
The
SEI contracts included procurement of two used Mi-24V Helicopters
instead of the recommended Mi-35M series at the cost of One Hundred and
Thirty Six Million, Nine Hundred and Forty Four Thousand US Dollars
($136,944,000.00).
However, it was confirmed that the helicopters were excessively priced and not operationally air worthy at the time of delivery. A brand new unit of such helicopters goes for about Thirty Million US Dollars ($30m).
However, it was confirmed that the helicopters were excessively priced and not operationally air worthy at the time of delivery. A brand new unit of such helicopters goes for about Thirty Million US Dollars ($30m).
Furthermore, the helicopters were delivered without rotor blades and upgrade accessories.
Additionally,
the helicopters were undergoing upgrade while being deployed for
operation in the North East without proper documentation. It was further
established that as at date, only one of the helicopters is in service
while the other crashed and claimed the lives of two NAF personnel.
The Committee established that ONSA also funded the procurement of 4
used Alpha-Jets for the NAF at the cost of Seven Million, One Hundred
and Eighty Thousand US Dollars ($7,180,000.00). However, it was
confirmed that only 2 of the Alpha-Jet aircraft were ferried to Nigeria
after cannibalization of engines from NAF fleet.
This
is contrary to the written assertion of the former Chief of Air Staff,
Air Marshal AN Amosu to the former NSA that all the 4 procured
Alpha-Jets aircraft were delivered to the NAF.
The
non-militarisation of the Alpha-Jets made them unsuitable for
deployment to the North East and they are currently deployed only for
training at NAF Kainji.
Furthermore, the procurement of the Alpha-Jets was contrary to the recommendation of the assessment team. The Committee found that the conduct of Air Marshal Amosu was deliberately misleading and unpatriotic.
Furthermore, the procurement of the Alpha-Jets was contrary to the recommendation of the assessment team. The Committee found that the conduct of Air Marshal Amosu was deliberately misleading and unpatriotic.
The
contract for the procurement of 36D6 Low Level Air Defence Radar for
the NAF was awarded to GAT Techno Dynamics Ltd in April 2014 at the cost
of Thirty Three Million US Dollars ($33m) and was funded by ONSA.
The
Committee established that the radars were excessively priced as a
complete set of such radars (comprising 6 radars including the Control
Centre) goes for Six Million US Dollars ($6m) averagely. The Committee
observed that the radars were delivered without the vital component of
Identification Friend or Foe (IFF) that distinguishes between own and
adversary aircraft, which has significantly degraded the operational
capabilities of the NAF in the North East.
It
was further observed that the sum of Three Million, Three Hundred
Thousand US Dollars ($3.3m) was fraudulently included in the contract
agreement as VAT and With Holding Tax and subsequently paid into the
bank accounts of Spacewebs Interservices Ltd and Delfina Oil and Gas
Ltd.
The Committee further established that Two Million US Dollars ($2m) from the proceeds was transferred to Mono Marine Corporation Nig Ltd, which is jointly owned by principal characters in this deal. The Committee opined that the infractions of extant regulations by these companies were clearly intended to defraud.
The Committee further established that Two Million US Dollars ($2m) from the proceeds was transferred to Mono Marine Corporation Nig Ltd, which is jointly owned by principal characters in this deal. The Committee opined that the infractions of extant regulations by these companies were clearly intended to defraud.
It
was established that between September 2009 and May 2015, the NAF
expended about Fifteen Billion Naira (N15bn) on the maintenance of its
Alpha-Jets, C-130H aircraft and Mi-24V/35P helicopters. Out of this
amount, Four Billion, Four Hundred and Two Million, Six Hundred and
Eighty Seven Thousand, Five Hundred and Sixty Nine Naira, Forty One Kobo
(N4,402,687,569.41) was paid out for contracts not executed.
It
was also observed that in carrying out these maintenance activities,
contracts worth over Two Billion, Five Hundred Million Naira (N2.5bn)
were awarded to Syrius Technologies, a Ukrainian company that was not
registered in Nigeria. Regrettably, in spite of these expenditures, the
status of NAF fleet remained operationally appalling as only 3
Alpha-Jets, 2 C-130H and one each of Mi-24V and Mi-35P were serviceable
as at 28 May 15.
In
October 2013, NAF awarded contracts to DICON for the supply of weapons
and ammunition at the cost of Five Hundred and Ninety Nine Million, One
Hundred and Eighteen Thousand Naira (N599,118,000.00). However, only 2
of the 7 items contracted were delivered to NAF while the outstanding 5
items remained undelivered despite repeated requests to DICON.
The Committee also found that the delivered ammunition were about 40 years old, thereby casting doubts on their shelf life. The failure of DICON to fully execute the contract and the delivery of aged ammunition diminished the capacity of the NAF in North East operation.
The Committee also found that the delivered ammunition were about 40 years old, thereby casting doubts on their shelf life. The failure of DICON to fully execute the contract and the delivery of aged ammunition diminished the capacity of the NAF in North East operation.
The
Committe uncovered insider dealings by military officers in procurement
activities undertaken by ONSA and the NAF. The officers were found to
have misused or abused their offices for personal gains by influencing
award of contracts to private companies in which they have substantial
interests.
For
instance, an officer serving in the ONSA used his office to secure 2
contracts for his company, Geonel Integrated Services Ltd, for the
protection of 20 Dams and Presidential Air Fleet security at the cost of
Six Billion, Two Hundred and Fifty Million Naira (N6,250,000,000.00)
and Five Million US Dollars ($5m) respectively.
Furthermore,
some NAF officers used their companies to collect VAT and With Holding
Tax that were never remitted to FIRS while another officer was found to
have cross transferred about Five Hundred Million Naira (N500m) between a
NAF company, Aeronautical Engineering and Technical Services Limited,
SkyExperts Nig Ltd and Huzee Nig Ltd, companies in which he had personal
interests.
It
would be recalled that in its First Interim Report, the Committee on
Audit of Defence Equipment established that the sum of Six Hundred and
Forty Three Billion Naira (N643bn) and Two Billion, One Hundred Million
US Dollars ($2.1bn) interventions were received for defence procurements
by DHQ and the Services between 2007 and 2015.
In continuation of its assignment, the Committee has so far established
that the nation spent about Twenty Nine Billion Naira (N29bn) and Two
Billion US Dollars ($2bn) on NAF procurement activities alone.
Garba Shehu
SSA to the President
(Media & Publicity)
January 15, 2016
Garba Shehu
SSA to the President
(Media & Publicity)
January 15, 2016
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