John Omachonu
The Nigerian state today seems to be grinding to a halt, with political
gladiators taking over the stage at the expense of the economy.
Accordingly, the fortunes of the country are gradually nose-diving, a
cross section of economy watchers told BusinessDay.
Continued oil theft, incessant budget delays,
rising insecurity, continued university teachers’ strike and political
diatribe amongst the leadership are, according to them, forcing the
nation on its knees.
The analysts specifically say that the
2.38 million barrels daily oil production estimate, as contained in the
Federal Government’s Medium Term Economic Framework (MTEF) for the 2014
budget, may be unrealistic due to oil theft and pipeline vandalism, just
as the current crisis in the ruling People’s Democratic Party (PDP) may
delay the budget presentation as well as implementation.
“At a
time of heightened political stress and shortfalls in oil revenue,
finding a compromise that works for all will not be easy,” said Razia
Khan, analyst with Standard Bank, London.
Commenting further on
the implications of the crisis in the ruling PDP, Khan said there is
now less certainty associated with election outcomes, and the months
ahead are likely to see politics move to centre stage, potentially at a
cost to other reforms, adding that if PDP eventually loses majority
membership at the National Assembly, there could be complications on the
passage of any legislation.
According to her, “Given current
circumstances, it is highly unlikely that Nigeria’s long-deliberated
Petroleum Industry Bill (PIB) will be passed soon. An end to regulatory
uncertainty is thought necessary to unlock new investment in the
upstream oil sector. Even passage of the 2014 Budget, expected to be
read at the end of October, may become more difficult, further
complicating the economic outlook.”
She said that although the
MTEF planned moderation in total spending in 2014 to N4.5tn, from N5tn
in 2013, there are some worrying concerns.
“From a growth
perspective, the share of recurrent spending would rise to 73.8 percent
of total spending, up from 64 percent in the current FY (increasing c.4
percent in nominal terms, to N3.32tn in 2014 from N3.2tn in 2013, but
squeezing capital expenditure. Given the current political backdrop,
budget assumptions for 2014 appear overly ambitious,” she added.
Bismarck Rewane, foremost economist and chief executive, Financial
Derivatives Company, in his recent publication, said the Nigerian oil
and gas sector remains a challenging environment to operate in. “In
order to improve the outlook for this sector, the government has to
ensure consistency in policies, address security issues and double down
on initiatives to improve innovation for increased efficiency in the
sector,” he said, adding that Nigeria remains a net importer of
innovation and so must make the necessary investments in training
institutions to provide capable human capital and innovation to meet the
needs of the sector.
Samir Gadio, emerging markets strategist
at Standard Bank, London, expressed similar pessimism, saying that
spending by politicians would affect the fiscal consolidation of the
Central Bank of Nigeria (CBN). He warned, however, that savings made in
the past had not improved the lot of the Nigerian citizens.
“In
reality, one should be a bit cautious about the assumptions of the MTEF
and their implication for effective fiscal policy. What really matters
in Nigeria is the federally-consolidated fiscal position rather than the
budget of the Federal Government,” he said.
“Besides, the
proposed spending terms of the FG budget are consistently adjusted
upwards by the National Assembly, a situation that we see persisting in
coming years,” he added.
FBN Capital Researchers, in their
October 28, 2013 note on ‘Some fallout from the election build-up’, said
the momentum of the FGN’s transformation agenda has slowed, adding that
its execution depends on the strength of the vested interests in
opposition. “Progress tends to be greater where those interests are
weaker (such as agriculture and power), and slower where they are
stronger (such as the PIB and the sovereign wealth fund),” they said.
Vested interests and unnecessary politicking which have visited the
passage of the PIB have slowed down exploration activities in an
industry that government earns almost 90 percent of its revenue. As if
this situation is not grim enough, the leadership of the nation has
enmeshed itself in political acrimony ahead of the 2015 general
elections.
With governance practically being abandoned for
political jobbery, Nigerians have been left at the mercy of armed
robbers, militants and kidnappers, as growing insecurity now pervades
the land.
The acrimony within the ruling party and between the
opposition parties is deep. Already, governors of the All Progressives
Congress (APC), the major opposition party, are threatening to take the
Federal Government (FG) to court over what they term illegal deductions
of 40 percent from their monthly allocations, a development that
analysts say will further slow down the economy.
The opposition
governors are also faulting the FG over the creation of the sovereign
wealth fund (SWF), saying next generation would fare better by the level
of investments made rather than by the amount of money saved.
In the midst of all this, there is spending spree at the centre
occasioned by corruption and incessant trips of government officials
overseas, threatening the CBN’s fiscal consolidation.
BusinessDay
Wednesday, 6 November 2013
Monday, 4 November 2013
Shackles and Ivy: The Secret History of How Slavery Helped Build America’s Elite Colleges
Guests
Craig Steven Wilder,
author of the book Ebony & Ivy: Race, Slavery, and the Troubled History of America’s Universities. Wilder is an MIT professor of American history and has taught at Williams College and Dartmouth College. His previous books include A Covenant with Color and In the Company of Black Men.
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A new book 10 years
in the making examines how many major U.S. universities — Harvard, Yale,
Princeton, Brown, Dartmouth, Rutgers, Williams and the University of
North Carolina, among others — are drenched in the sweat, and sometimes
the blood, of Africans brought to the United States as slaves. In "Ebony
& Ivy: Race, Slavery, and the Troubled History of America’s
Universities," Massachusetts Institute of Technology American history
professor Craig Steven Wilder reveals how the slave economy and higher
education grew up together. "When you think about the colonial world,
until the American Revolution, there is only one college in the South,
William & Mary ... The other eight colleges were all Northern
schools, and they’re actually located in key sites, for the most part,
of the merchant economy where the slave traders had come to power and
rose as the financial and intellectual backers of new culture of the
colonies," Wilder says.
Click here to watch part 2 of this interview.
Click here to watch part 2 of this interview.
Transcript
This is a rush transcript. Copy may not be in its final form.
AMY GOODMAN:
We turn to a new book 10 years in the making that looks at how some of
the country’s major universities—Harvard, Yale, Princeton, Brown,
Rutgers, Williams, the University of North Carolina, to name just a
few—are drenched in sweat, and sometimes the blood, of Africans brought
here as slaves. The book is called Ebony & Ivy: Race, Slavery, and the Troubled History of America’s Universities. In it, MIT
history professor Craig Steven Wilder reveals how the slave economy and
higher education grew up together. He writes, "the American campus
stood as a silent monument to slavery." Well, this history is silent no
more. Professor Craig Steven Wilder joins us here in New York.Welcome to Democracy Now!
CRAIG STEVEN WILDER: Thank you very much.
AMY GOODMAN: So, talk about America’s most elite universities. What relation do they have to slavery?
CRAIG STEVEN WILDER: I think there are multiple relationships. The first and probably most poignant, most provocative, is the relationship to the slave trade itself. In the middle of the 18th century, from 1746 to 1769—fewer than 25 years, less than a quarter century—the number of colleges in the British colonies triples from three to nine. The original three were Harvard, Yale and William & Mary, and all of a sudden there were nine by 1769. And it triples in that 25-year period. That 25-year period actually coincides with the height of the slave trade. It’s precisely the rise and the elaboration of the Atlantic economy, based on the African slave trade, that allows for this sort of fantastic articulation of new growth of the institutional infrastructure of the colonies.
AMY GOODMAN: So, let’s talk specifically about particular universities.
CRAIG STEVEN WILDER: Sure.
DemocracyNow
Disquiet in National Dialogue Committee over Nyiam
Col. Tony Nyiam (rtd),
•SGF summons embattled member
•Edo refutes allegation
• Abia backs conference, seeks restructuring
•ACF opposes inclusion of ethnic nationalities
•SGF summons embattled member
•Edo refutes allegation
• Abia backs conference, seeks restructuring
•ACF opposes inclusion of ethnic nationalities
By Emmanuel Ugwu, Adibe Emenyonu and John Shiklam
There is a growing concern among members of the Presidential Advisory
Committee on National Dialogue over the continued membership of Col.
Tony Nyiam (rtd), who led suspected party thugs on Monday to heckle Edo
State Governor, Adams Oshiomhole, in Benin City.
The members, who were not happy with Nyiam's decision to rebuff their entreaties for him to resign in the wake of his misconduct, it was gathered, met yesterday to consider how to handle the situation.
One of the steps they took was to call the Secretary to the Government of the Federation, Senator Anyim Pius Anyim, who, it was learnt, summoned Nyiam to Abuja.
Nyiam, who had initially agreed to resign his membership of the committee, seemed to have made a U-turn as he sought to take further part in the committee's activities.
Although he went with his colleagues to Enugu State on Tuesday during which they received memoranda from stakeholders in the state, he did not participate in the public hearing as he sat out at the car park of the Government House, Enugu, while other members were meeting with the stakeholders.
He was also not with them yesterday as they visited Abia State to receive input from stakeholders on how to organise the national conference.
A member of the committee told THISDAY that they "met yesterday to deal with Tony's case- that he had withdrawn his resignation, that his lawyer and people have told him that we cannot stop him from participating. He was visibly agitated.
"We had to call the SGF who has now summoned him to Abuja. Members had told the chairman that they felt uncomfortable with his suspicious movements and one had already received a threatening text message."
Nyiam's misconduct continued to generate more reactions as the Edo State Government faulted his defence of his action in Benin.
Also, the Arewa Consultative Forum (ACF) has expressed opposition to suggestion that the delegates to the national conference should be drawn from ethnic nationalities, among others.
As the committee continued its consultations in the South-east zone yesterday in Umuahia, without Nyiam, the people have expressed support for the need for dialogue in order to build a true nation where equity, fairness would reign supreme.
Nyiam was not among members of the committee who paid a courtesy visit to the governor, Chief Theodore Orji and when the sensitisation session commenced, he was not seen.
Chairman of the committee, Senator Femi Okunrounmu, refused to explain the absence of Nyiam as he just blurted out “no comment” when he was asked about the retired officer by reporters.
However, THISDAY gathered Nyiam did not come to Umuahia with his colleagues while two of the members who responded to enquiries about the whereabouts of Nyiam said he did not follow them to Abia State after the Enugu forum.
“He (Nyiam) was with us at Enugu but he didn’t come with us here,” one of the committee member said.
Orji, who was the first to address the sensitisation session, urged the committee to look out for salient proposals that will foster equity, fairness, and mutual inter-dependence of states and people in the building of a new nation.
Professor Joe Irukwu, who presented the position of Abia State, said the people and government of Abia were in support of the conference because they were committed to the project of rebuilding Nigeria.
On how the conference should be organised, Irukwu said the state's position was that there should be equal representation of six delegates per geopolitical zone while the conference should have a chairman and six vice-chairmen picked from all the zones.
According to him, the dialogue, when it begins, should end before the next general election while the decisions reached at the conference should form the basis for a people’s constitution.
Meanwhile, responding yesterday to Nyiam's defence of his conduct in Benin on Monday, the Edo State Government said his shameful action had exposed him as a bias person that should not be trusted with such a sensitive assignment. Defending himself, Nyiam had said his grouse with Oshiomhole was because of his sarcastic remarks against the proposed dialogue.
He also accused the governor of being in the habit of criticising the efforts and policies of the Jonathan administration.
But the state government in a statement by Oshiomhole's Chief Press Secretary, Mr. Peter Okhiria, wondered when Nyiam became the president’s spokesman as to want to drag Jonathan's name into his shameful act.
"We find it interesting that Col Nyiam has exposed the undercurrent motive of the conference which has also confirmed Governor Oshiomhole’s initial fears about the viability, necessity and desirability of same," the statement said.
In a related development, the Arewa Consultative Forum has kicked against the inclusion of ethic nationalities as participants in the proposed national conference.
The ACF, in a communiqué at the end of its National Executive Council (NEC) meeting in Kaduna, said their participation would end up polarising the country along ethnic lines.
It added that representation based on equality of geopolitical zones, of states or of ethnic nationalities was too divisive for furthering national unity.
Instead, the forum urged the federal government to use local government areas as constituency units for representation, adding that each local government nationwide should be represented by one delegate.
Besides, the forum in the communiqué, which was signed by its National Publicity Secretary, Mr. Anthony Sani, expressed pessimism about the outcome of the proposed conference and expressed the hope that it will not suffer the same fate with the one that was held during the administration of former President Olusegun Obasanjo.
ThisDay
A Full Transcript of STELLA ODUAH'S DEFENSE
PRESENTATION BY THE HONOURABLE MINISTER OF AVIATION, PRINCESS STELLA ODUAH, OON AT THE PUBLIC HEARING ORGANISED BY THE HOUSE OF REPRESENTATIVES COMMITTEE ON AVIATION HELD AT HEARING ROOM 0.28, HOUSE OF REPRESENATIVES ON 31st October, 2013
Honourable Chairman,
Honourable Members of the House Committee on Aviation,
Gentlemen of the Press,
Distinguished Ladies and Gentlemen
1. Introduction
1.1. Let me first and foremost apologise for my inability to honour your invitation to appear before you on the first two days the public hearing held. My non appearance was not borne out of disrespect to this Honourable House. Let me also thank the Honourabe Committee for graciously rescheduling my appearance to today.
1.2. The invitation to appear before this Honourable Committee was brought to my attention while I was on national assignment far away in the State of Israel to conclude negotiations on a Bilateral Air Service Agreement (BASA) on behalf of our dear country with the State of Israel. I received the invitation with relief and gratitude to God because of the promise of the opportunity it would afford me for Nigerians, and indeed the whole world, to hear me out and set the record straight.
1.3In the last few weeks, I have received all sorts of bashings in the media. Many persons have also risen to my defence. Many have abused me, some out of a genuine sense of outrage that I allegedly spent the sum of USD1.6 Million of government funds to purchase for myself 2 nos bulletproof BMW Cars for my personal use.
1.4 You may recall that there have been attempts at clarifying issues pertaining to this particular procurement. In the process, some of the issues were further muddled up. I mention in this regard the first attempt at clarifying the issue by the Coordinating Spokesperson for the parastatals when he was first confronted with the allegation, without recourse to the Minister or the Principal Officer of the Ministry and its Agencies, described the information as a mere rumour.
1.5. This was followed by the statement of my S.A Media who was himself guided by his own perception of the duties and challenges of my office and possibly, even the danger to the person and office of the Minister. This is made evident by the fact that his statement focused on my personal security and safety without recourse to procurement process and policy file to which he had no access.
1.6 Although both inaccurate and innocently misguided, I understand the urgency and aggression considering the sources the information was breaking from.
1.7. The last official intervention in this matter came from the Director General of NCAA, the agency charged with the oversight of the aviation sector and the agency that actually undertook the procurement. Whereas the DG was right in saying that the vehicles were not bought for my office, the anticipated positive effect of this correct piece of information was marred by remarks credited to the DG suggesting that the agency was more concerned about issues of administration and information security that had no bearing on this issue. In this regard, we must bear in mind that the DG was very likely guided by his concerns about other types of information the NCAA receives such as critical airworthiness and other commercially sensitive information which the Civil Aviation Act mandates the NCAA to protect.
1.8Let me therefore state emphatically for the records that there was no attempt to either deliberately mislead the public or conceal any information regarding this transaction; and also to formally apologise for whatever tension or perception of same as a result of the foregoing. On that note therefore, I stand before you and make the foregoing clarifications.
1.9. The second category of commentators are the entrenched interests in the aviation sector, who for over 38 years have held the sector by the jugular and refused to allow any meaningful development and change to take place. For the over 38 years that our airports were a damning commentary on our status, even when our airspace existed without the requisite navigational equipments and facilities to make the airspace safe; this group of persons saw no evil and heard no evil. Under the leadership of Mr President and the overwhelming support of the National Assembly, my team and I have changed the game in favour of Nigeria towards attaining her pride of place in the aviation world.
1.10 It is for the first category, the Nigerian people who have acted out of a genuine sense of patriotism, that I seize this opportunity to let the world know the truth surrounding this matter. For the second category, that is the entrenched, corrupt and profligate individuals and entities who have caused the serious rot in the aviation sector, I owe no apologies.
1.11 Honourable Chairman, my initial enthusiasm was almost doused when I became aware of what transpired when the Permanent Secretary of the Federal Ministry of Aviation appeared before the Honourable Committee as my representative, with a letter conveying my regards and requesting to present the position of the Federal Ministry of Aviation. I have it on good authority that after his appeal and the presentation of my letter, he was, in the words of some newspaper headlines, “walked out of the House”.
1.12 I cannot in any way challenge the wisdom of the Honourable Committee for walking him out. However, had he been allowed to present the Ministry’s position, the truth about this matter would have been known in the first instance.
1.13 I believe that it was one of those moments when, the false accusations and my trial in the media, had affected the sense of outrage of the Honourable members as citizens of our great nation. Fortified in this knowledge of the fairness of the Committee, I prepared my presentation knowing that the Honourable Committee will continue to treat me fairly and afford me the opportunity to present it to the Nigerian people without let or hindrance. My humble appeal is that the Honourable Committee will discountenance the blatant falsehoods that have been peddled against me in the media and patiently hear my side of the story.
2.0 The Allegations Against Me
Honourable Chairman, as you are all aware, what necessitated this public hearing were the events that followed a false and malicious online publication that I had compelled the NCAA to purchase for me 2 nos BMW bulletproof cars at the cost of USD1.6 Million. Let me state emphatically from the onset that the allegation concerning the purchase of 2 nos bulletproof cars for me by the Nigerian Civil Aviation Authority (NCAA) is false in its entirety. Sadly, other than the conjecture, the publication has not supported this inflammatory statement with any rational basis. As a matter of fact, their justification and confirmation which they brandish is nothing but the erroneous responses of my aides.
3.0 Matters Arising from the Lease Financing Arrangement for Operational Vehicles by the NCAA
3.1.0 Did the NCAA Spend Monies Not Approved by the Appropriation Act, 2013?
3.1.1 Honourable Chairman, the NCAA, as a result of the daily interaction with the law in its regulatory and enforcement roles, is at all times and in all matters conscious of its obligations of complying with the law and all extant rules and regulations of the Government. The NCAA is therefore conscious of its obligations relating in particular to appropriation and will never spend monies that have not been appropriated by the National Assembly.
3.1.2 It is in this regard, therefore, that the NCAA, within the framework of the Medium Term Expenditure Framework (MTEF) approved by the National Assembly as a planning tool, planned its budget with regard to acquisition of operational and other security and safety vehicles for the next three years in a manner compliant with Section 80 (4) of the Constitution of the Federal Republic of Nigeria, 1999 (as Amended), that prohibits the spending of monies from any fund of the Federation except as appropriated by the National Assembly.
3.1.3 The media has been awash with the purported spending of monies by the NCAA to the tune of USD1.6 million, N255 million and other figures on the purchase of vehicles by the NCAA. Honourable Chairman, IT IS NOT TRUE THAT THE NCAA HAS SPENT SUCH AMOUNT OF MONEY ON PURCHASE OF VEHICLES. It is also NOT TRUE THAT THE NCAA HAS PURCHASED 2 BULLETPROOF BMW VEHICLES FOR THE HONOURABLE MINISTER OF AVIATION.
3.1.4 Honourable members, as pointed out above, my understanding is that what the NCAA has done, is to plan for the acquisition of vehicles for next three years within the MTEF through a LEASE FINANCING ARRANGEMENT with First Bank Plc. Under this arrangement, NCAA would have paid N100 Million by the end of fiscal year 2013. The sum is below the appropriated amount of N240 Million and LESS than what is required for FEC approval. It would appear that what the NCAA has done within the framework of the MTEF and its desire to be prudent, is to plan its budget in a manner that the cash flow of the Authority is able to accommodate spending.
3.2.0 Justification for the Lease Financing of the 2 Nos BMW Cars
3.2.1 Honourable Chairman, the NCAA owes its very existence to the benevolence and wisdom of the National Assembly expressed through the promulgation of the Nigerian Civil Aviation Act, 2006. As the regulator of the entire aviation industry, the NCAA, pursuant to powers granted under the Civil Aviation Act, 2006 makes and enforces Regulations towards ensuring safety and security of Nigeria’s airspace. The NCAA in addition, plays a pivotal role in carrying out Nigeria’s international obligations and responsibilities. Our role in the Ministry and under the law is what I have carried out which is to support this from a policy and execution standpoint only.
3.2.2 NCAA has performed with distinction over the years ensuring that Nigeria currently has attained the coveted Category One certification of the U.S FAA; Nigeria is currently a member of the ICAO Council with the strong probability that a Nigerian may emerge the President of the ICAO Council in a matter of days, hopefully by the end of the month of November, 2013 and on the 6th of December, 2013, both the outgoing President and incoming President of ICAO will be in Nigeria. The aggregate of the various victories of Nigeria in the international arena, including the re-election of Nigeria as a non-permanent member of the UN Security Council, is that Nigeria is increasingly readdressing the negative perceptions about our nation.
3.2.3 The important thing about this certifications is that it naturally requires the same, and sometimes higher levels of performance to maintain. This is a matter of long term, continuous planning, and seamless execution, which includes acquiring the right assets, tools, equipment and people. The inadequacy and unreliability of NCAA existing operational vehicles in part, due to old age and depreciation should necessitate the acquisition of the new ones. Furthermore, with the appointment of a new Director General, restructuring of the agency, the need for additional operational tools, including vehicles became imperative. Moreover, the fact that NCAA, as the regulator of the industry, often plays host to dignitaries from ICAO and a host of other international and regional organizations made it imperative to have various specifications of operational vehicles including the purchase of the 2 nos security/safety vehicles. Certification is a continuous exercise in aviation and surveillance is a daily part of the operations of the NCAA.
3.2.4 As pointed out above, Nigeria is an important player in ICAO circles and Nigeria’s emergence as a member of the General Council has increased the expectations in international aviation. Most importantly, the expected emergence of a Nigerian as the President of the General Council of ICAO will make Nigeria one of the most significant destinations for actors in the international aviation sector. This will place additional burdens on us as a nation.
3.2.5 Perhaps, these are the factors that the NCAA considered in planning for the acquisition of the different specifications of vehicles through a Lease Financing Arrangement. It is customary and obligatory that we ensure the security and safe passage of all our international guests, when they visit. Aviation, as well as other security, require proactive and preventive measures.
3.2.6 It will not be in the interest of our nation for any of the events above to occur and ought to be avoided at all cost. The NCAA acted with the highest patriotic consideration within the ambit of the Law and the Constitution.
3.3.0 Did NCAA Purchase 2 Nos Bulletproof Vehicles for Me as the Honourable Minister of Aviation?
3.3.1 Honourable members, another falsehood in the public domain relating to this Lease Financing Arrangement is that the NCAA purchased two bulletproof vehicles for me as the Honourable Minister of Aviation. This is TOTALLY FALSE. The 2 nos security/safety BMW vehicles which the NCAA acquired are for security and safety as appropriated by the NASS in the 2013 budget in Item 6. The title documents which are in the names of NCAA/FIRST BANK PLC, as well as spare keys of all the vehicles purchased under the lease financing arrangement are currently with First Bank of Nigeria, Plc as is the case with such arrangements and best practice.
3.3.2 Honourable Chairman, in addressing the issue of authorization by the NASS as contained in Item 6 of the budget, we invite your honours to consider the narration. In the narration, your honours will observe that the 2 nos security/safety vehicles are provided for distinctively. They are separate from the other vehicles listed. The legislative process, including the process of appropriation, involves a lot of explanations by the beneficiaries of legislative powers in that regard, but when the explanations eventually find merit and is passed, all that happened preceding the passage of the Law may not be a necessary recall.
3.3.3 Your Honours, I draw attention to this fact because of the erroneous belief in some quarters that, because in the course of the NCAA defending its budget proposal for 2013, it had to return to the NASS a few times to explain their proposal, therefore the purchase was never appropriated. This may not be totally correct as 2 nos security/safety vehicles were provided for.
3.3.4 There was nothing in the approved documents reflecting my name, when the budget was being made. At no time did I ever request for any vehicle from the NCAA. It was the agency that had the need and made the request to the Federal Ministry of Aviation. After the purchase on a 3 year Lease Financing arrangement, the vehicles were never delivered to me. The vehicles were also not registered in my name but that of the agency. All I did was to approve the request of the Agency subject to the Agency doing the needful as evidenced by my minutes on the letter dated 15th April, 2013.
3.3.5 Honourable Chairman, on the procurement procedure for the lease arrangement for the acquisition of the vehicles, let me reiterate that from the records available to me, it would appear that the NCAA followed the due process required by law. As we gather here today, I have been made to understand that there exist no guidelines issued by the Bureau for Public Procurement (BPP) on lease financing.
3.3.6 Despite this lacuna, the NCAA determined to ensure fair participation invited all the Banks in Nigeria to bid for and or express interest in the transaction. The Federal Ministry of Aviation under my watch has always been mindful of the need to ensure that we act in a prudent manner and within the ambit of the law and this can be testified to by the tremendous transformation that has occurred in the sector in the last 2 years.
3.3.7. Specifically, I wish to draw the attention of this Honourable Committee to the procedure adopted by the NCAA in procuring the operational vehicles:
i. On the 15th of April, 2013 an official letter was written by the NCAA requesting for approval to procure operational vehicles through Lease Financing. The NCAA’s letter is annexed herein as Annexure FMA “2”.
ii. On the 25th of April, 2013 approval was conveyed to NCAA for the acquisition of operational vehicles through Lease Financing. The letter annexed is Annexure FMA “3”.
iii. On the strength of the above letter of approval, the NCAA got the list of all Banks in Nigeria on 7th May, 2013 and circulated a Request for Expression of Interest on the financing of the lease. The letters to all the Banks requesting for Expression of Interest (EOI) are annexed as Annexures FMA “4 – 22”.
iv. On 24th May, 2013 the Request for Expression of Interest (EOI) was publicly opened. Three Banks submitted proposals.
v. The Evaluation of the Expression of Interests was held on 31st May, 2013 during which First Bank Plc, Union Bank Plc and Stanbic IBTC responded.
vi. On the 10th June, 2013 the above three banks were invited to submit Financial Proposals. Thereafter, First Bank of Nigeria, Plc emerged the highest rated responsive bidder.
vii. Between 20th and 25th June, 2013 NCAA received invoices from various accredited motor vehicle dealers during which only Coscharis Motors Limited quoted for BMW Bulletproof Vehicles. Copies of the invoices are attached as Annexure FMA “23 - 42”.
viii. On 28th June, 2013 NCAA Parastatal Tenders Board approved the selection of First Bank of Nigeria, Plc for the Lease Financing as well as Metropolitan Motor Vehicles and Coscharis for the supply of the vehicles. This approval was predicated on the due process documentations done by the NCAA.
ix. On 1st July, 2013 the NCAA sought the approval based on the invoices and the final negotiations with the financing Banks.
x. Based on the outcome of the negotiations as contained in the invoices from the Banks, on 5th July, 2013 I conveyed the approval of the Federal Ministry of Aviation. The letters dated 5th July, 2013 is annexed as Annexure FMA “43”.
xi. I am aware that between 8th July, 2013 to 12th August, 2013 various meetings were held with First Bank of Nigeria, Plc and necessary documentations were carried out. A copy of the Letter of Offer of Credit Facility containing the terms of the relationship dated 30th July, 2013 is attached as Annexure FMA “44”.
xii. On 13th August, 2013 the suppliers of the vehicles were contacted at the instance of First Bank of Nigeria, Plc.
xiii. It is my understanding that by the end of this year, the total amount to be paid by NCAA to First Bank of Nigeria, Plc will be 100 Million Naira only based on an understanding the NCAA has with the Bank and the balance of 16 Million Naira only will be paid in the following year.
xiv. It is also my understanding that the deal between the NCAA and First Bank of Nigeria Plc which came to a total sum of N643M is a mere understanding and not an obligation that is why it is included in the Medium Term Expenditure Framework which could be called off in the event that the two parties decide to discontinue hence all title documents are in the joint names of NCAA and First Bank of Nigeria, Plc.
xv. It is my understanding that by the end of this year, the total amount to be paid by NCAA to First Bank of Nigeria, Plc will be 100 Million Naira only based on an understanding the NCAA has with the Bank and the balance of 16 Million Naira only will be paid in the following year.
3.3.8. The Honourable Committee may wish to confirm that the NCAA sent out Expression of Interest (EOIs) to the following banks:
1. Sterling Bank Plc
2. Zenith Bank Plc
3. Keystone Bank Limited
4. Access Bank Plc
5. Diamond Bank Plc
6. Skye Bank Plc
7. Standard Chatered Bank Nig Ltd
8. Mainstreet Bank Limited
9. Union Bank of Nigeria Plc
10.Unity Bank Plc
11.Fidelity Bank Plc
12.Guaranteed Trust Bank Plc
13.Ecobank Plc
14.United Bank for Africa Plc
15.First City Monument Bank Plc
16.First Bank of Nigeria Plc
17.Wema Bank Plc
18.Citi Bank Plc
19.Equitorial Trust Bank Limited
20.Enterprise Bank Plc
21.Stanbic IBTC Plc
22.Heritage Bank Limited
3.3.9. Your Honours, ladies and gentlemen, our nation is at a cross road in its history. The transformation agenda of Mr. President has changed our ways of doing things significantly. Mr. President recognized the infrastructural deficit in our nation and has taken very bold steps to address this and in order to bequeath to the next generation a nation that can compete favourably in the comity of nations and imbue our next generation with pride and patriotism.
3.3.10. The massive investment and the aggressive implementation of this agenda have seen the aviation sector being transformed. Today, 22 Airports owned by the Federal Government are at various stages of becoming decent and world class terminals. Nigeria’s airspace is now rated among the safest in the world with the deployment of modern navigational equipments and infrastructures. The capacity of the whole sector has been strengthened with the relevant regulations in place and the training and retraining of personnel. Our National Aviation Policy has been reviewed to chart the path to a safer sector. The plan to give Nigeria a national carrier is at an advanced stage of implementation. The desire to create an aviation sector that is self sustaining is being pursued aggressively.
3.3.11. Conversely, efforts to bring change to the aviation sector are being resisted by entrenched interests that have been ripping off the nation. We have had to put our foot down in order to halt the rape of our national patrimony. We have had to confront forces that have held the sector hostage. My team and I will not fold our arms and complain and not lift a finger to do anything. We dared to act; we have indeed acted, convinced that it was in the national interest to do so.
3.3.11. We are not at our destination yet, but witnesses to the rot of yesteryears are now proud of the ongoing transformation in the sector. What we are doing in the sector, together with the effort in other equally important sectors, have given hope to the mass of our people that we can do something, apart from complaining, about the decay in our national life.
3.3.12. Towards this end, the purveyors of the rot and corruption that has characterized the sector have continued to fight back every inch of the way. The latest false and wicked allegation of purchase of 2 nos bulletproof cars for me by the NCAA is one of such fights to discredit my team and give the impression that our reforms lack credibility. But we assure them that Nigerians now know better.
4.0 Conclusion
4.1 Honourable Chairman and members, we have made all of these explanations because we believe that the essence of this hearing is to confirm whether we acted responsibly and in the best interest of our nation and within the framework of the Constitution and the Law. We believe that all of this is meant to make our nation and her citizens have the best value for whatever money is appropriated and spent. It is in this belief and our duty under the Law and the Constitution that we have placed all materials involved in this transaction before you in order that you may be able to arrive at a fair and just determination in the larger interest of our people.
4.2 We reiterate that NCAA has not spent any money not appropriated by the National Assembly. Indeed what they have spent so far on ALL the vehicles acquired through the Lease Financing Arrangement with First Bank of Nigeria Plc is N52,000,000.00 (Fifty Two Million Naira only). By so doing, they have saved the nation cost and the possible embarrassment that may arise if the events we have pointed out earlier were to occur.
4.3 We further reiterate that the NCAA DID NOT purchase 2 nos bullet proof vehicles for me as the Honourable Minister of Aviation. We reiterate that the NCAA purchased 2 nos security vehicles for the operations of the NCAA in line with monies approved for the NCAA under the Appropriated Act passed by the National Assembly.
4.4 Thank you for the opportunity afforded me to make this presentation and for your patience in listening to us.
A nation gets the government it deserves
There have been some allusions, both from official and unofficial quarters, to the fact that some influential individuals with stakes in the aviation sector, led by the Chairman of Bi-Courtney Group, Dr. Wale Babalakin, engineered the present travails of the Minister of Aviation, Ms. Stella Oduah, simply because her so-called transformation agenda conflicted with their business interests.
Some even went as far as suggesting that the basic rationale for purchasing two armoured vehicles, worth N255 million, for the minister was the apparent threat to her life by these “powerful” individuals, while some others concluded that Babalakin, being “a victim of the ongoing aviation reforms”, would be a willing financier of the campaign for the removal of the minister.
A particular commentator, Ore Kingsley, actually claimed in an article in THIS DAY of October 23, that Babalakin and Bi-Courtney have the highest motivation for seeking a sudden end to Oduah’s tenure, and possibly her life, because they stand to gain the most from such an eventuality.
Apart from alleging that Bi-Courtney fraudulently secured an extension of the tenure of the concession agreement, it entered into with Federal Government to build and operate the ultra-modern Murtala Muhammed Airport Terminal Two (MMA2), from 12 years to 36, the writer also added and I quote: “How did Oduah cross the way of Bi-Courtney? The company realising that it did not have enough aprons to park aircrafts in MMA2 claimed that the General Aviation Terminal (GAT) belonged to it and pointed out a clause in the agreement that said no other domestic airport terminal should be built in Lagos without deferring to Bi-Courtney. Oduah defiantly made it clear that GAT, which she dismantled and rebuilt under one year, did not belong to Bi-Courtney.”
It is on the strength of arguments such as these that the supporters of the minister have labeled Babalakin the instigator-in-chief of Oduah’s clearly self-inflicted woes.
Truth is that the judiciary, up to the Court of Appeal, has affirmed Bi-Courtney’s ownership of GAT and the 36 years tenure of the concession. As a matter of fact, the arbitration panel, which first heard the dispute between Bi-Courtney and FAAN, did not only order the immediate hand over of GAT to the company but also awarded N132 billion damage against the government.
Since then, there have been several appeals by different entities, including the two mainstream trade unions in the aviation sector, Ojemai Holdings, which claims to be the landlord of Arik Air, FAAN itself and the Attorney General of the Federation on behalf of the Federal Government/Aviation Ministry, all of which were dismissed by the courts.
In fact, a particular judgment by Justice G.K. Olotu of Federal High Court, Abuja Division, delivered on July 3, 2012, in a case between Bi-Courtney and the Attorney General of the Federation, put the position of the law on the issues between Bi-Courtney and the Aviation Ministry beyond any shade of doubt.
The judge, in his ruling, noted: “In the case before the court, we have seen the gross, deliberate, calculated and heinous abuse of the rule of law, typified by the acts of the Federal Government of Nigeria, headed by the President, assisted by the Minister charged with responsibilities for aviation matters in disobeying the judgment of the court delivered on 3rd March, 2009, i.e. approximately three years and three months ago, to deliver the immediate possession of the GAT to the plaintiffs (Bi-Courtney) as ordered by the court.
“As if that is not enough, the Federal Government and its agencies are presently engaged in the ‘remodelling and, or, construction works to improve the terminal (GAT), contrary to and notwithstanding the agreement with the applicant and the judgment of the honourable court.”
Need one say more?
Let us even for a moment pretend that Babalakin and his company are involved in a plot to unseat Oduah, as being alleged. How does that excuse the countless air mishaps that have dogged the minister’s tenure, the cosmetic transformation of the aviation sector through the remodeling of some terminals, the arrogant and terrifying manner she reacted to the crash of the Associated Airline plane that claimed 14 lives by saying it was “inevitable” and an “act of God”, and the most recent scandal involving the secret purchase of two armoured BMW cars?
For the records, this is a man who held sway as the Chairman of the Committee of Pro-Chancellors as well as the Chairman of the Implementation Monitoring Committee of the 2009 Agreement between the Federal Government and university-based unions, the same agreement at the heart of the current ASUU strike, and in all those years ensured there was not a single strike by any of the unions, save for a short-lived strike by ASUU in solidarity with state universities in the South-East. It was for these reasons that President Goodluck Jonathan referred to him as “the man who has been helping us to stabilise the universities”, and also why the immediate past President of ASUU, Prof Ukachukwu Awuzie, applauded him for the “unprecedented understanding and passion he has shown for the University cause for which he is now nicknamed ‘Chairman of ASUU’”.
How long will it take before we start seeing injustice to one of us and injustice to all of us? It is this complacent attitude that has fueled the arrogance that is common among our leaders and the disdain with which they regard us whenever we chance to raise our voice in protest. This attitude of ours also brings to memory the words of Martin Niemoller, a priest, during the Nazi tyranny in Germany.
“First they came for the communists, and I did not speak out because I was not a communist. Then they came for the socialists, but I did not speak out because I was not a socialist. Then they came for the trade unionists, and I did not speak out because I was not a trade unionist. Then they came for the Jews, and I did not speak out because I was not a Jew. Then they came for me – and there was no one left to speak out for me.”
It was ‘big man’ Babalakin yesterday, when the ministry of aviation and Federal Airports Authority (FAAN) wantonly violated an agreement they validly entered into with his company, with the attendant consequence of disrupting his projections and driving him into huge and avoidable debts.
Also, we could not be bothered when FAAN officials stormed the site of a four star hotel and conference center, being developed by Bi-Courtney at the airport, and vandalized the company’s property and also assaulted its staff, in a clear and malicious violation of a subsisting court order restraining it from such action.
TheSun
Aviation Minister's Fraud And The Non Accountability Syndrome By Hannatu Musawa
Mininster of Aviation, Stella Oduah
Looking at just this saga with Mrs. Oduah, it is no wonder that Nigeria still rates towards the bottom of the global corruption barometer. When an official, who is in the annals of government exercises the systematic convention of organized and endemic corruption, while showing no mind for any accountability, it stands to reason why we are still far from a well-functioning society with secure peace and sustainable development.
And it’s not so much about the fact that the Minister was allegedly caught with her hand in the cookie jar or about the fact that she seems absolutely inept in overseeing the duty of which she has been unsuitably awarded, it’s more about the symbolism her seemingly haughty continuance in office represents where she appears not to take accountability, despite all the scandal surrounding her and the slapdash manner in which she is crippling the sector which she oversees.
This business in Nigeria where no one feels the need to take accountability for their actions and where no government official takes responsibility when they do wrong or when things under their guidance go awry is just no good business at all. And no matter how we cut it, if one really thinks about it, at the root of Nigeria’s problems is a deep lack of accountability. And with that lack of accountability and responsibility come the lack of consequences and sanctions for bad behavior. And with the lack of consequences and sanctions for bad behavior comes a free for all that gives way to the dangerous combustible combination we are seeing today in this country.
The problem of our lack of accountability isn’t necessarily because the legal framework for accountability does not exist. After all, was accountability not the reason for the set-up of the EFCC and the ICPC? Was it not for the purpose of sanctioning wrongdoing that the OPUTA panel was conducted? The laws are there, the courts are there to correct all the anomalies in the system, but the real problem is that our leadership seems unwilling to fight Corruption and to tackle the panicky accountability issue. And even the bodies that have been established to fight corruption and force government officials to be accountable basically lack the directive, powers and resources to combat graft, because as a society we have developed a syndrome where no one takes accountability for anything.
Despite the fact that every one of us in this country, at some stage, probably has to take responsibility for our countries decay, the lion’s share of the blame resides with the government. But, as far as the government is concerned, lack of accountability is an integral part of their existence and operations. In other civilized societies, it is not uncommon for government officials to resign when a mistake has been made within the organization or sector which they head, even if that mistake wasn’t in anyway their fault. That is precisely what leadership is about; taking responsibility and being accountable to the citizens. That is what leaders’ do; that is part of the consequence of leadership.
However this is not the case in Nigeria. Our environment has deteriorated to its present state precisely because no one takes accountability for their wrongdoing and government hardly ever accepts responsibility for its mistakes. There have been so few prosecutions, criminal proceedings or other serious consequences and punishment of misdeeds, especially as it relates to issues of corruption and the misuse of public resources. For the few that have been caught red-handed and prosecuted, often times, they are brought back after a short hiatus to become the darlings of the government. And in an undeveloped society like ours, this is very damaging. There is little to no penalty for engaging in embezzlement or other abuse of office that the practice is seen as without risk, in addition to the social, political and personal pressures which encourage misuse of the privileges of position.
There can be no benefit to have no meaningful consequence when a government employee abuses their office. It sends the signal that such practices are acceptable. The system of patronage and graft must be dismantled from the top, to show that there are no untouchables, and that anyone who steals or is corrupt runs the risk of serious consequences. Until then, there is no reason to think anything will meaningfully change in Nigeria.
We have always had the prospect to seriously dampen the corruption which is holding back our progress, through the prosecution of corrupt individuals, with forfeiture, fines, court cases, and serious jail time. That so little of that has happened, is one of the primary reasons why progressively more volumes of corruption clog the system.
It is the government that has the authority, resources and power to deal with and take accountability of our problems head on. The fact that they don’t, is an indictment of their commitment to rule without the voice of the People being heard. Unless we are willing to reverse this trend, where no one takes accountability in order to move the society forward, then Nigerians will never have a voice. Those elected to speak on our behalf will continue to be the sham of political non-debate that they are, where their mouth platitudes and take default positions that say nothing about governance and everything about lack of vision and incapacity to lead.
Those who care about our future should redefine their thinking to focus more directly on the core elements of accountability. Our focus must also be on changing the incentives and relationships that give rise to endemic graft as part of a campaign to build a contextualized system of values and ethics. With the proper value system, corrupt office holders and high level transgressors must in earnest be prosecuted if they do wrong in public office if they do not resign.
Since the birth of this republic, the legitimacy of political actors in the country has been derived not from the provision of services to the public or sensitivity to citizens, but from membership in deeply entrenched political kitchen cabinet networks. And although the legitimacy of the minister in her current position vis-a-vis the Jonathan administration seems to derive from this same principle, holding on tight to the minister in the manner the government is doing will do no favors to a government already widely seen as corrupt, not transparent and deceitful.
The Minister of Aviation, Mrs. Stella Oduah, may have come up with the excellent scheme of ‘neighbor to neighbor’ in the 2011 elections, but those days are long gone. For whatever brilliant result she achieved in her role during the last elections, her latest role has fallen in complete contrast to that. And no matter how much the Jonathan administration wants to keep and shield Mrs. Oduah, even they must know that now that the chips are down, there is a need to clean house. One only hopes that the house cleaning will involve, a broom, a mop and an inept aviation minister that will be on her way…out of the door
Saharareporters
The Tears Of General Muhammadu Buhari Revisited: He Is No Longer Alone By Benedict Oladipo Koledoye
By Benedict Oladipo Koledoye
Arguably, that action of the General took the shine off the ‘exploits’ of Dr. Patience Faka Goodluck Jonathan of the “PDP election campaigns bandwagon”. Take it or leave it, she was second to none in her campaigns for her husband, and his "junior brothers" in the states. By referring to gubernatorial candidates as the "junior brothers" of her husband, it clearly shows the bereft knowledge of the practise of federalism, even in the ‘high’ places.
For her, states are junior partners in the federal structure arrangement. One can now understand why some officials in the Presidency believe that the State Governors must be subordinates or appendages of the Presidency. The drama in River State aptly captures this understanding. Indisputably, and with respect, her election campaigns around the country provided comical relief to so many Nigerians. Her recorded speeches gained a wider audience than that of any of the other candidates. Notwithstanding that, very many became quite mischievous about the whole thing. To test the veracity of this, even two years after the election campaigns, ask any Nigerian of any incisive or impressive statement made by any of the presidential candidates in the said election campaigns, many of us would struggle to remember. But ask of the speeches of Dr. Patience Jonathan, I bet one would have more than enough quotable quotes. She was the ‘star’. Dr. Patience Jonathan, became a reference point. It was in such atmosphere that General Buhari seemingly ‘spoilt’ the show by shedding tears.
General Buhari’s tears elicited a mixed reaction, some shared his sentiments and frustration, while some considered the tears as the anguish of a man who saw defeat glaring at him on the election day. I must confess that it was startling to see a General crying publicly again. At this juncture, I recall the Oputa Panel, where Nigerians were entertained with the video footages of the weeping Generals. The video footages are still very much available on YouTube. I tried to spot the difference in the tears of the Generals. While one can safely assume that Oladipo Diya and Late Abdukarim Adisa cried to survive, in other words, to elicit pity and pardon, I think Buhari’s tears is not about his personal ambition and survival but tears for mother Nigeria. To this extent, and with the current happenings in the polity, it would be very important to revisit that event.
Times have really changed. Two years ago, when Buhari wept, it appeared he was alone, or at best with a motley crowd as his co-traveller. Indeed times have changed! If many still don’t like the face of Buhari, at least one thing has united them with him, tears and weeping. It is now solidarity in tears. The litany of lamentation is unending. Where do we start from? It is simply horrendous. The sad thing is that we talk and write about the many failures every day. Is it about the basic infrastructure? Is it about security of lives and property? Is it about health sector, education sector, and roads?
Is it about corruption? What is it that has not been said or written? At this time, without sounding immodest or pessimistic, we might as well change our national anthem to “By the rivers of (Babylon), there we sat and wept, when we remember...” It may not be out of place to say that the tears and cries of many Nigerians have reached cruising level. It is steady, constant and consistent. Honest, poor and sincere well meaning Nigerians are crying on daily basis. It appears that the very few who are not weeping are the “few”, thieves, roques, political profiteers and their cronies who are smiling and laughing. This group will never see anything wrong in our system, so long their wanton greed is being satisfied.
How can one refrain from shedding tears when very many of our brothers and sisters are already demented by the system. Sincerely, reading some comments of some Nigerians on critical national issues, is more disturbing and should elicit more tears than the collapse of infrastructure. As it were, you read and hear comments that readily gives heartache. One cannot but question this kind of reasoning. The recent scandal in Aviation Ministry readily comes to mind. Like Buhari, I am sure many Nigerians wept when it was reported that some group of people were out protesting and carrying placards such as as ‘leave our daughter alone to continue her good work’ . There are paid adverts on the pages of newspapers trying to justify this form of recklessness, without intending insults, it is only people that lack intellectual capacity that would ever go on such mission. Intellectual capacity is about logic and robust thinking.
I am compelled to think that, even if purchase of those armoured vehicles follows the due process from Appropriation Act, and meets the procurement process requirement, what about the other salient issues, particularly the moral issues involved? Can such profligacy stand a moral test considering the level of poverty in the same country? In a country where an average citizen lives in perpetual fear because of prevalent insecurity. I would not be surprised if some demented people from Yoruba, Hausa, Fulani, or other ethnic extractions would not do same for their son or daughter in a similar circumstance in future. As a matter of fact it has been done in the past. Indeed one cannot but shed tears. We cannot continue to play ostrich that we don’t know where this would lead the nation. If the very few Nigerians who are the profiteers of the present system feel we are heading in the right direction, I wish them luck, however, I think the tears of many Nigerians are for them, and their very many sorrows that would come.
Who says Buhari is alone in tears? But we can be sure the almighty God who never abandons his own, will turn the table around sometimes and someday. Those who are weeping now “shall come back rejoicing bringing the sheaves” – one day and someday!
Saharareporters
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