Monday, 22 October 2012

Opposition as Reps move to abridge CBN autonomy


CBN Governor, Sanusi Lamido Sanusi
Stakeholders in the financial sector,  including a former Minister of Finance, Mr. Adamu Ciroma, and an ex-Central Bank of Nigeria  Governor,  Chief Joseph Sanusi, on Monday, opposed the bid by the House of Representatives to tamper with the CBN autonomy.
They cautioned the House against altering the  globally accepted  trend, which encourages an autonomous and financially-independent apex bank.
There is a bill before the House, which seeks to amend the CBN Act 2007 by transferring the power of the board of the bank to approve its budget to the National Assembly. The bill also proposes to cut the membership of the board from 12 to seven and to appoint another person, other than the CBN governor, as the chairman of the board.
Ciroma and Sanusi spoke at a public hearing organised in Abuja by the Joint House Committee on Banking/Currency and Justice to amend the CBN Act.
Ciroma, a former CBN governor, wondered what aim the proposals would achieve. He argued that to whittle down the power of the CBN governor or exclude the deputy governors from the decisions of the board was “out of line with international best practices.”
Ciroma said, “The CBN board has always been made up of executive members of the bank and private sector persons who have distinguished themselves.
“There is  a great danger in excluding the governor and the knowledgeable people in the economy and banking system from the CBN.”
On his part, Sanusi told the committee that the proposals were strange to him, adding that he was at a loss over what the House  aimed  to achieve.
Sanusi said, “We are not moving in the right path because in all countries of the world, the CBN governor heads the board.
“The only exceptions will be inconsequential CBNs. To be different has very serious implications for inflation. “It means we have a CBN that no longer has control.”
Sanusi observed that the proposed amendments must have come out of some misunderstanding between the current CBN governor, Mr. Lamido Sanusi, and the National Assembly. He urged both parties to make efforts to bridge any communication gap between them.
CBN Deputy Governor (Banking Operations), Mr. Tunde Lemo, also kicked against the amendments on the grounds that a CBN without autonomy was as good as no CBN.
He explained that due to the impact of the bank’s policies on the economy, it could not afford to subject its decisions to external influences such as the National Assembly.
“The CBN Act, 2007, works effectively as it is now and requires no amendments,” he said.
According to Lemo, the aim of the apex bank is not to make policies that will achieve immediate political aims.
“The CBN cannot afford to wait for bureaucratic approvals before acting fast in taking decisions,” he argued.
“If the CBN had waited for the approval of the National Assembly before doing what it did (banks bailout), maybe by now there would have been no banking sector in this  country,” he added.
Apart from leading to higher inflation, he claimed that a CBN without autonomy would be unable to perform its lender of last resort function, among others.
Other stakeholders that opposed the proposed amendments included the Nigerian Labour Congress, the Institute of Chartered Accountants of Nigeria, the Nigeria Deposit Insurance Corporation of Nigeria, Chartered Institute of Bankers of Nigeria, First Bank Plc, Zenith Bank and Ecobank.
However, the Chairman of the committee, Mr. Jones Onyereri, told the session that the House had no motives other than to strengthen the CBN and make its operations more transparent and open .
The Minority Leader of the House, Mr. Femi Gbajabiamila, argued that if the President of the country could not spend “a penny without the approval of the National Assembly,” he  did  not see why the CBN should not be accountable to Nigerians.
Punch

Nigerian diplomats in Europe, Americas stranded •Use Ghanaians as fronts to secure accommodation •As FG owes them salaries, allowances

President Goodluck Jonathan NIGERIA’S foreign service officials have become the laughing stocks of the diplomatic world in Europe and the Americas following the failure of the home government to remit their salaries and allowances to them as and when due.
Investigations by the Nigerian Tribune revealed that in most parts of Europe and the Americas, Nigerian diplomats now have to resort to using Ghanaians as fronts when looking for accommodation because most landlords refuse to let their houses to Nigerians.
The issue, according to sources especially in Switzerland, Italy, Canada, United States and Germany, has to do with the failure of the Nigerian Ministry of Foreign Affairs to remit the salaries and allowances of the foreign service staff to the respective embassies and high commissions on time.
Right now, sources confirmed that Nigerian diplomats across Europe and the Americas are being owed minimum of two months salaries and allowances.
Sources confirmed that the plight of the foreign service staff was further compounded by the fact that they cannot utilise the earnings of their respective embassies from visa applications on ways and means.
Investigations further revealed that most embassies and high commissions are compelled to use the resources they make from visa applications to offset salaries of local staff and pay for services, while the Nigerian officials are left to fend for themselves until Abuja releases funds.
The case of Canada was said to have got worse in recent weeks, forcing Ambassador Ojo Maduekwe to run to Abuja to hold talks with President Goodluck Jonathan and the Minister of Foreign Affairs, Ambassador Gbenga Asiru, to avoid total closure of the High Commission in Canada.
Nigerian Tribune further gathered that Maduekwe’s decision was borne out of feelers that the High Commission might be shut down by Canadian officials if it defaulted on payment for services.
Sources confirmed that for embassies and high commissions with huge population of Nigerians, the stress could be less because they could still have some resources to handle their ways and means after paying local staff.
“The problems confronting Nigerian diplomats are many. Their salaries are delayed; they are often left to fend for themselves in foreign lands. The problem is further compounded by the fact that the embassies cannot afford to owe their local staff, whether Abuja releases money or not. The embassies have to pay salaries and for telephones, water and other services. Those are not negotiable. As for the foreign service staff, they are left on their own,” a source in the know said.
 It was gathered that the practice of delaying funds for the running of Nigerian embassies and high commissions across the world has been a long standing issue and that many times, the diplomats are owed five months salaries.
Sources said that the situation for Nigerian diplomats in Geneva and Switzerland has gone worse as many of them now have to get houses using Ghanaians as fronts.
“What happens is that the landlords no longer let out their houses to Nigerians because they default. So a Nigerian will have to gather his money, look for a Ghanaian who will pay for a house on his behalf and sign the agreement with the landlord before transferring the house to the Nigerian, who gave him the money. It is that bad,” the source said.
A source further said that many Nigerian diplomats had heaved a sigh of relief when the current Permanent Secretary, Ambassador Marthin Umhouibi, was appointed on the strength of the fact that he was formerly an ambassador in Europe and had experienced similar difficulties while in foreign service. The source, however, added that the situation has improved a bit but that there was only a reduction from five months arrears of salaries to two.
NigerianTribune

Adamawa Crisis: PDP Govs Accused of Plotting Tukur’s Removal


230712N.Bamanga-Tukur.jpg - 230712N.Bamanga-Tukur.jpg
PDP National Chairman, Alhaji Bamanga Tukur
By Chuks Okocha and Alex Enumah
Despite the appeal by the Governor of Adamawa State, Murtala Nyako, that he erred with the dissolution of the executive of the state chapter of the Peoples Democratic Party (PDP), some members of the national secretariat are still accusing him of mobilising other PDP governors against the National Chairman, Alhaji Bamanga Tukur.
Also efforts by Tukur to reconcile the warring factions in the Taraba State chapter of the PDP has hit a brick wall as the state Governor Danbaba Suntai, has failed to honour the invitation of the PDP national secretariat.
THISDAY gathered from party sources that there were moves by Nyako to get PDP governors to rally round him to force the Tukur-led National Working Committee (NNC) to reverse the dissolution of the Adamawa PDP executive council.
The Media Adviser to PDP Chairman, Eddie Adenirokun, who confirmed the plot to THISDAY, said the Tukur-led PDP should not be crucified for trying to enthrone discipline in the party.
According to Adenirokun, “It is a common fact to us in PDP that Nyako is mobilising other PDP governors against the national chairman.
“But let it be known that the sack of the Adamawa PDP executive was not a personal decision of Tukur. It was the NWC decision based on empirical fact of indiscipline against the Adamawa PDP executive.
“It is painful that the issue of enthroning discipline had to start from the home state of the national chairman but you don’t make an omelette without breaking an egg,” he said.
Tukur’s Media Adviser denied that the sack of the Adamawa PDP executive was because of the politics of 2015 where Tukur’s is believed to be nursing a governorship ambition.
Rather he said, “Tukur has a global image and therefore will not stoop so low to interfere in affairs of a state chapter. What took place was a decision of the NWC and not Tukur’s decision,” he said.
Meanwhile efforts to resolve the face-off between Suntai and Senators Aisha Alhassan (Taraba North) and Abubakar Tutare (Taraba Central) over non-conduct of congresses in the state which prompted the Independent National Electoral Commission (INEC), to write to the PDP requesting for fresh congresses in the state has suffered a setback.
In response to several complaints made by aggrieved PDP members led by Senators Alhassan and Tutare, the PDP deputy national secretary had on September 17 summoned Suntai and the two senators to a meeting with the NWC members in Tukur’s residence.
The national deputy secretary explained that the meeting scheduled for September 22 “was to seek ways of the various interests affecting the cohesion of the party in Taraba State.”
It was gathered that on the scheduled date, the two senators and some NWC members were in Tukur’s house for the meeting but the meeting had to be put off when the state governor sent a message to the national leaders of the party that he could not sit down at any meeting with the two senators in attendance.
The action of the governor has again prompted the two senators to fire another petition to the PDP national secretariat, insisting that the party must organise fresh congresses in the state to take over from the executive appointed by the governor as earlier directed by INEC.
Meanwhile, a gale of resignation of appointment is sweeping through executive committees in some wards and local government councils in the state in protest against the directives of Suntai to PDP members, instructing them not to associate with Alhassan and Tutare.
In one of the joint letters of mass resignation of the entire executive committee of Sarikin Dawaki ward in Jalingo, the party elders said they were quitting in protest against the suspension of the Ward Chairman, Alhaji Nuhu Musa Kasimu; the Women Leader, Aishatu Shuaibu and two others over alleged insubordination.
They said “the reason advanced by the party at the local government secretariat in Jalingo for suspending the Ward leaders is frivolous and vexatious as it was clearly stated in the letter summoning them to appear before a disciplinary panel that they violated the order passed across the state from the state secretariat that no executive should have any fellowship with Senator Aisha Jummai Alhassan.”
While querying the rationale and constitutionality of the order not to associate with the senators who is a member of their party, they informed the state executive committee that the order was an infringement on their fundamental rights of freedom of association.
Meanwhile, Tukur has identified the lack of political will on the part of previous administrations in the country as the major impediments to the growth of the country’s industrial sector.
Tukur who lamented that Nigeria still import a lot of things that she is supposed to be exporting to other nations in spite of her being blessed like the developed countries of America, Europe and Asia, called for the building of stronger institutions that will help actualise the potentials of the nation.
The PDP Chairman was speaking yesterday with journalists during a tour of facilities and Award of Long Service at ABUMET Nigeria Limited, Abuja, where he commended both the staff and management of the organisation for being one of the few companies that have not only survived but has flourished when others are collapsing.
While recalling that the main objective why the company was established is to build a first class aluminium industry to meet the growing need of the Federal Capital Territory at the time, Tukur stated that: “From available records at my disposal, ABUMET has performed wonderfully in the areas of product acceptability by clients.
He however lamented that the uncontrolled importation of finish aluminium products from China at subsidized rate is a big challenge to manufacturers of aluminium in Nigeria.
The PDP Chairman, who also doubles as Chairman of ABUMET Nigeria Limited, while blaming the lack of will on the part of governments particularly regulatory agencies for failing to live up to their biddings, called for a proper education and reorientation of the people.
ThisDay

Suspected killers of UNIPORT student and ex-corper arrested in Port Harcourt


Just two days after Daily Post reported the brutal murder of three persons including a UNIPORT student and an ex-corps member, who passed out of the programme that same day and was believed to have served in the state, the Nigerian Army say they have arrested three of those who carried out the dastard act.
The men are suspected to be members of a six-man syndicate involved in last thursday’s assasination Thursday at Rumuchakara village in Choba community, the major host community of the University of Port-Harcourt, Rivers State.
Army Public Relations Officer, 2 Brigade/Sector Two Joint Task Force, Maj. Mike Etete, made the announcement while parading the suspects before newsmen on Sunday in Port Harcourt.
He said that the suspects, (named withheld), were arrested after a stop and search operation was carried out by the Anti-Kidnapping Unit of the Task Force at Rumuochara Village in Choba, near Aluu Community in the state.
He said, “Following the killing of three persons at Rumuochara Village in Choba on October 18, a manhunt was launched for the arrest of the gunmen.
“At about 1:45 a.m. this morning, troops of the Anti-Kidnapping Unit of the Joint Task Force intercepted four gunmen at Choba Junction.
“An exchange of gunfire ensued between the soldiers and gunmen; consequently, one of the gunmen was killed instantly, one was injured and two others escaped with injuries. Our soldiers did not sustain any injury in the course of this operation.”
Mr. Etete added that after the gun battle, soldiers cordoned-off the area and apprehended two other suspects who allegedly came to support their gang members. He said the suspects were arrested while investigation revealed that the two suspects were supplying arms and ammunition to reinforce their gang members.
He named items recovered as three AK 47 rifles, 272 rounds of 7.2mm live ammunition and 16 magazines. Others include an ash coloured Toyota Avalon car with registration numbers Kano AG 320 MDG, four Nokia phones and one Blackberry phone and identification cards.
Etete called on the public and hospitals to report persons with gunshot wounds to security agencies in the state.
He declined attempt by reporters to speak with the suspects, stating that such could jeopardise ongoing investigations.
DailyPost

Refrain from Litigation: Senate President Warns Ondo PDP

By Taiwo Adisa
Chief Olusola Oke
Chief Olusola Oke, PDP Candidate
SENATE President, David Mark, has asked the candidates of the Peoples Democratic Party (PDP) and Action Congress of Nigeria (ACN) in the Ondo gubernatorial election to refrain from using litigations to distract the winner, Governor Olusegun Mimiko. Mark, who stated this in Quebec, Canada, where he was the leader of the Nigerian delegation to the 127th Inter-Parliamentary Union (IPU) meeting, said the result of the election had confirmed that the wishes of the Ondo people had prevailed.
He said Nigerian politicians must start embracing the democratic culture, where the power of the people, as expressed through the ballot, was seen as supreme.
Mark, who congratulated Mimiko on working hard to secure the victory, said he was proud Nigerians relegated sentiments to vote for performance in office.
In a similar vein, the Deputy Speaker of the House of Representatives, Honourable Emeka Ihedioha, in an interview, said the result of the election in Ondo had shown that the people appreciated performance.
According to him, reports on the ground before the election had shown that Mimiko had worked hard for the people in his first tenure and that it was only good the people of Ondo rewarded him with a second term in office.
“Looking at the figures, I think it’s a true reflection of the wishes of the Ondo people and I think it was a free, fair and credible election and having spoken to few friends back home, my personal advice is that losers should not get into any form of litigation at all.
“Let’s not waste time and resources. They must all come together now and work with Mimiko for the benefit of Ondo State and the people of Ondo State,” Ihedioha said.
He also commended the people for voting freely, saying that though his party, the PDP, lost, he was happy that the electoral process was free and fair.
LibertyReport

Guber Poll: Ondo PDP Rejects Results, Blames INEC, Security Agencies

Reacting through a press statement which was made available to journalists on Monday, the Ondo State chapter of the Peoples Democratic Party {PDP} and the Olusola Oke/Saka Lawal Campaign Organisation has rejected the results of the October  20 Ondo State governorship election released by the Independent National Electoral Commission {INEC}
The party also blamed the independent Electoral Commission and security agencies at all levels for allowing what it called “massive rigging and disenfranchisement of the electorates” during the election.
The Independent National Electoral Commission, had on Sunday 21st of October declared Governor Olusegun Mimiko of the Labour Party winner of the election, saying that he polled 260,199 votes. The Commission also declared that the candidates of the PDP and ACN, Chief Olusola Oke and Barrister Rotimi Akeredolu, polled 155,961 and 147,512 respectively.
The Olusola Oke/Saka Lawal Campaign Organisation which said that the result was regrettable, shameful and disgraceful to Nigeria added that it was and would remain unacceptable to the PDP as a political party and as a stakeholder.
Signed by its Director-General, Dr. Oluwadare Bada, the Campaign Organisation noted that the election was not only marred with irregularities and massive corruption but it has failed to reflect the true desire of the people of Ondo state who were looking forward to the election with high hope of bringing an end to brigandade, waste, corruption and rudderless leadership.
It went further to state that the result that was announced by INEC was a decimation of the people’s avowed march towards enthroning integrity, transparency, modesty, focus and action, adding that the outcome of the election as announced by the Electoral Commission was predetermined, predesigned and organized to be the way it came.
“We are convinced and we say this to the whole world that the factors to this eerie experience were well known to INEC, security forces, Labour Party and Ondo State government before hand. Sadly, both INEC and security agencies chose to ignore them” the statement reads in part.
On security arrangements, the Campaign Organization said that it was shameful that security agencies showed total partisanship and predetermined interest before and during the election, thereby negating there earlier words and promises to address the earlier subversive plans of the Labour Party and the state government that were discovered and reported by the opposition parties before the elections.
“It is sad that the massive rigging and disenfranchisement of the electorates took place in the rural areas whereas security was beefed up in the urban centres. We call for a total overhauling of the office of INEC in Ondo state as well as the state Command of the SSS, Police and the entire Army and Naval Operations in Ondo State”
The Campaign Organization also alleged that INEC refused to conduct elections in some Wards and Units in PDP’s strongholds, robbing the party of vital and massive votes and as well canceled many results for no reason, other than being won by the PDP, in the areas where alaections materials arrived after maximum delay.
The statement also said: “It is no longer news that INEC delayed the supply of election materials to the Local Governments, Wards and Units in our stronghold but did otherwise to the Labour Party’s comfort zones. For example, voting materials and INEC staff did not get to many Wards and Units in Ilaje Local Government, e,g, Ugbo Wards 1, 2, 3, 4, 5 and 6 and Mahin Wards 1 and 2 until afternoon when the time for accreditation was over”
“Same also happened in many places at Ese-Odo Local Government and many parts of Irele and Odigbo Local Government, all in the Southern Senatorial District”
Speaking further, the Olusola Oke/ Saka Lawal Campaign Organization alleged the Labour Party of deploying well over 10 Billion Naira of tax payers’ money to perpetrate itself in office at the dentriment of the beleaguered Ondo State people, stressing that money was freely deployed to buy votes at the polling units especially in the Central and Northern senatorial Districts.
LibertyReport

Aviation Minister, Stella Oduah accused of favouring Igbos in recruitment processes


A wave of appointments in the Ministry of Aviation attracts suspicious stares to Ms. Stella Oduah, Minister of Aviation, who is accused of flooding agencies in the ministry with South-Easterners
Stellar. This is not a word that watchers of the aviation industry will freely use in an assessment of Ms. Stella Oduah, Minister for Aviation. It was not always that way. Oduah, a major player in President Goodluck Jonathan’s campaign, started out like a house on fire. Shortly after becoming minister, she turned her attention to the country’s decrepit airports and quickly commenced a lavish remodelling of 11.
It was a move that attracted huge applause from members of the public, who had become disenchanted with the shabbiness of such facilities. The airport rehabilitation exercise has since been hobbled by a shortage of funds and the applause has thinned out.
More worryingly, what is left of Oduah’s deposit of goodwill is experiencing rapid depletion on account of what she brands as a restructuring of the agencies under her ministry. This has put her under the headlights of public scrutiny. And the result has been less than flattering, as it contains a strong whiff of an ethnic agenda.
Oduah’s recent appointments in such agencies have provoked allegations of “ethnic cleansing”. At the Federal Airports Authority of Nigeria, FAAN, Oduah sacked eight General Managers, GMs. Six of them hail from the Southwest, while two are from the North.
Those affected by the weeding process are Solanke Gideon Akintunde, GM, Facilitation; Mrs. Ayeni Folashade Olufemi, acting GM, Internal Audit; Mr. Komolafe Samuel, GM, Commercial; Mr. Oyedepo Adeyemi Biodun, GM, Mechanical; Mr. Adefarasin Adeoye Emmanuel, GM Stores; Mr. Tanko Idris, GM, Management Services; Alhaji Maltala Iliyasu, GM, Finance; and Mr. Bello Olu Kayode, acting GM, Internal Audit. The minister also redeployed six senior staff– four GMs and two Regional Managers–and appointed 75 new staff in the agency. Forty of the new appointees are from the South-East. The minister hails from Anambra State.
At the Nigerian Airspace Management Agency, NAMA, the minister has appointed about 107 staff since August, with 12 percent of them from the North, 20 percent from the South-West and 68 percent from the South East. This works out at 73 slots for the minister’s geo-political zone. A creditable imitation of this trend was produced at the Nigeria College of Aviation Technology, NCAT, Zaria, where Captain Adebayo Araba, rector of the college, was replaced by Captain Chinyere Kalu. Last year, the minister chucked Alhaji Ibrahim Usman Auyo as NAMA Managing Director. His replacement was Engineer Nnamdi Udoh. At the Nigerian Meterological Agency, NIMET, Dr. Anthony Anuforom, a South-Easterner, was re-appointed as Director-General.
Also last year, Engineer Sam Oduselu, Commissioner of the Accident Investigation Bureau, AIB, with Captain Muhtar Usman. Oduselu was relieved of his appointment seven months into his second term of office and no strong reason was offered. Oduselu’s sack, aviation stakeholders insist, was a violation of the Civil Aviation Act No. 6 of 2006.
AIB sources told TheNEWS that the agency, conceived to have a lean staff strength, currently has 45 people in its employ. But Oduah has already made about 50 additional appointments, most of them from the South-East.
“We understand that their appointments are already at an advanced stage. She is appointing between 45 and 50 new staff. She’s bringing these people without thinking about their salaries. She is choosing them mainly from the South-East where she comes from,” the source alleged. The appointments have irked stakeholders. Comrade Abdul Kareem Motajo, acting General Secretary, National Union of Air Transport Employees, NUATE, accused the minister of destroying the industry with her bad policies.
“If you look at what is happening, the minister is sowing the seeds of a tribal agenda. At the audit department of FAAN, the General Manager has been sacked and an Igbo lady is coming to occupy the seat. Six other officers from the South-West have also been removed from that office in other to accommodate the new people that are coming in. Comrade Olayinka Abioye, Deputy General Secretary for the Air Transport Services Senior Staff Association of Nigeria, ATSSSAN, described the pattern of appointments made by Oduah as an indication that she is unfit for the job. “My take is that she is not only promoting ethnic agenda, but a destructive restructuring where mediocrities are imported to truncate or stunt careers of our qualified members,” he said
One of those appointed as GMs, said a source, “graduated just four years ago and has jumped ahead of people who have been working for over 20 years. For the next six months, he will be going for training at the expense of the agency. These are the things we are fighting against because they portend real danger to the industry and we are not going to allow that to happen,” said the source.
Comrade Odinaka Jude Igbokwe, NUATE’s Senior Organising Secretary, is of the view that Oduah started well and sustained the momentum for a while before the wheels came off. “She did some commendable things, including submitting all the concessions at FAAN to a review. But now, she is doing many terrible things, like appointing people to positions they do not deserve. She is bringing greenhorns to occupy positions that are meant for experienced people. To me that will lead to a total disruption in the industry. Many aviation professionals have no job and when you bring people from outside the industry, that is the worst thing you can do to the industry. The way she has taken off and going ahead is not going to help the industry,” he reckoned.
Igbokwe also accused the minister of opaqueness in the award of contracts.
“Look at what she calls remodelling of airports. FAAN, which owns the airports, does not know what she is doing. For the first time in my life, I see a government contract for which the name of the contractor is not known. We do not know the architect or what the contract is all about,” he said with barely concealed disgust.
Another anomaly that has sparked anger in the sector is the reappointment of Captain Henry Omegui as FAAN’s Director of Airport Operations. Omegui was said to have been indicted for a variety of corruption-related activities.
Apart from labour leaders, the minister’s actions and policies often get criticised by other stakeholders in the sector. They generally think her policies are not good. One of her staunchest critics is Captain Dele Ore, a veteran Nigerian pilot and President, Aviation Round Table. Ore alleged on 27 July that Oduah threatened to “deal with him” in a telephone conversation.
“At 11.13 a.m. today 27 July, 2012, the Honourable minister of aviation, Princess Stella Oduah, called me from a number “08055024340” and showered unprintable insults on my person, threatening my life while promising to deal with me. This conversation lasted 3 minutes and 8 seconds, and she claimed that I have been writing rubbish, lies and fabrications about her in the media.”
Ore explained that he was not against the minister as a person but against her policies and management style, which threaten the sector. Specifically, Ore criticised the minister for the airport remodelling project she has embarked upon, saying it did not follow due process and that she was utilising funds meant for other purposes to execute it.
There was also bewilderment when Oduah cancelled the contract between FAAN and Maevis Nigeria Limited, its revenue generating concessionaire, at Lagos and Abuja airports. The cancellation was in disobedience of a presidential directive. Tunde Fagbemi, Maevis Managing Director, has insisted that his contract with FAAN was to last until 2017. Both parties are in court.
Oduah also drew the ire of Dr. Wale Babalakin when she began remodelling the General Aviation Terminal in Lagos in disobedience of a concession agreement between FAAN and Bi-Courtney Aviation Services Limited, builders and managers of the Murtala Muhammed Airport 2, MMA2. According the contract, all domestic airlines in Lagos should operate from MMA2. Oduah’s remodelling of the General Aviation Terminal is a direct hit on Babalakin, as Arik and other domestic airlines have been encouraged to give MMA 2 a wide berth.
At a press conference two weeks ago, NUATE and ATSSSAN identified ten areas in which they reckon that Oduah has failed. These, naturally, include the perceived lack of fairness in appointments.
The unions insisted that the new appointments have not followed due process and do not reflect federal character. “We have also observed that some unqualified elements are being decorated with the toga of General Managers without the prerequisite experience, expertise, skills and qualification as stipulated in the public service rules and or the subsisting conditions of service in the various agencies. To add insult to an already sore wound, the Minister of Aviation has approved that a graduate of four years, without any sense of public service duties, be made a General Manager,” the unions raged.
Another area of failure, according to the unions, could be noticed in Oduah’s creation of directorates, something she is said to have no power to do. “The minister does not have the authority and competence to create extra directorates without approval from the Office of the Head of Service. The new Directorate created in FAAN, for instance, is a breach of establishment laws and a contravention of the position of the Chief Executive of FAAN, who had once claimed that he does not require more than three hundred personnel at the FAAN headquarters even with six directorates, which are being indiscriminately increased to nine,” said the unions.
Oduah has also been accused of meddlesomeness in the day to day running of the agencies, which are allegedly run according to her own rules. “How else can one describe the ongoing remodelling of our airports without following due process; where contractors are unknown; where nobody knows the costs of such gigantic projects; whereby FAAN which is supposed to supervise and grant necessary approvals for work done is nowhere near the projects; and where NAMA, which has no business in the so called re-modelling, is involved in paying as much as over N200 million as custom duties for items for the remodeling of our airports?” the groups asked.
The groups reckon that their criticism of the minister has placed them firmly in her gunsights and she is itching to shoot. “The minister has begun the unholy process of collating and collecting names of union leaders at the branch and national levels for possible transfers, dismissals and or retrenchment,” they alleged.
Similarly slammed on Oduah is that accusation of failure to assist aviation agencies to collect their debts from airlines. “It is necessary to ask the minister what efforts she has made to effect the collection of outstanding indebtedness of her agencies such as FAAN, NAMA and others, which can barely pay staff salaries from airlines and or concessionaries, considering the precarious financial situation of agencies,” the unions said. They also wondered why FAAN and other agencies, which can barely pay staff salaries and promote staff or pay other statutory deductions, are being saddled with additional directorates created by the minister.
Before now, Oduah’s stay in office has hardly been plain sailing. After the initial flourish of the airport remodelling exercise, the aviation sector was hit by a series of problems, not exactly created by her. In May, the price of aviation fuel soared to N190 per litre, a development that strangulated domestic airlines. Of the nine airlines in business, three (Midwest, Chanchangi and Associated Airlines) gave up the ghost on account of huge debts. Those that survived–Arik Air, Aero Contractors, IRS Airlines, Overland Airways, Dana Air and Air Nigeria–kept gasping. Things grew worse. Currently, only four commercial airlines remain in the skies and most of them owe tonnes of debts to aviation agencies, foreign and local banks as well as the Assets Management Corporation of Nigeria, AMCON.
Last month, the Central Bank of Nigeria, CBN, barred the top two airlines from receiving any additional loans over their massive outstanding debts. Arik Air, the nation’s top carrier owes AMCON more than $534 million, according to the CBN, while Aero Contractors, owes more than $203 million to the state-run company.
Ugo Okoroafor, a Central Bank spokesman, warned that any bank that goes against the CBN directive on the airlines would face serious sanctions.
Though he acknowledged the difficulties in the industry, he said the bank can no longer allow massive debts to pile up on the nation’s banks and threaten the financial market.
“Adverse consequences exist for people who take part in such unhealthy acts,” Okoroafor warned. In August, the scale of decay was further exposed in the report by an investigative panel, set up after the 3 June crash of a Dana Air plane, by the Ministry of Aviation.The panel concluded that the country’s aviation sector is in such a bad shape that only a state of emergency could prevent its total collapse.
Group Captain John Obakpolor (retd.), who headed the panel, said the sector would need at least N500billion to survive.
“At the end of its deliberations, the committee came up with 59 findings and 41 recommendations, in line with the terms of reference. The federal government should immediately declare an emergency in the aviation sector and commence implementation of the Aviation Safety Emergency Programme,” Obakpolor said.
He added that the Nigerian Civil Aviation Authority, NCAA, should ensure that airline operators are put under closer surveillance. “Maintenance actions carried out by operators, if not routine, should always be queried to establish what necessitated the maintenance action and ensure the continuous proper use of the technical logbook,” he said. The crash that provoked the probe attracted public anger to Oduah, who was accused of insensitivity when she restored the licence of the airline when the bodies its 163 victims were yet to be buried because of delay in the identification process.
There was also bewilderment when Oduah cancelled the contract between FAAN and Maevis Nigeria Limited, its revenue generating concessionaire at Lagos and Abuja airports. The cancellation was in disobedience of a presidential directive. Tunde Fagbemi, Maevis Managing Director has insisted that his contract with FAAN was to last until 2017. Both parties are in court. Oduah also drew the Dr. Wale Babalakin when she began remodeling the General Aviation Terminal in Lagos in disobedience of a concession agreement between FAAN and Bi-Courtney Aviation Services Limited, builders and managers of the Murtala Muhammed Airport2, MMA2. According the contract, all domestic airlines in Lagos should operate from MMA2.
But Joe Obi, Special Assistant (Media) to Oduah, argued that the minister should be commended rather than condemned for what she has done in the ministry and dismisses allegations that she is pursuing an ethnic agenda. “I think the minister needs to be commended. There was no lopsidedness in terms of Federal Character in the appointments. Those within the agencies who merited promotion but were unduly stagnated by previous administrations have been promoted,” he told TheNEWS.
Obi described the dissent of the unions as “the traditional resistance to change and nothing more”.
 BusinessNews