Following the submission of the third
interim report of the Presidential Committee on the Audit of Defence
Equipment Procurement from 2007 to 2015 to President Muhammadu Buhari,
he has approved further investigation of 18 serving and retired military
personnel, 12 serving and retired public officials and 24 chief
executive officers of companies involved in the procurement.
A statement released by the committee through the Ministry of Information and Culture said the report was released yesterday.
The statement by the committee’s
president, Air Vice Marshal Jon Ode (rtd), said all were either
accounting officers or played key roles in the Nigerian Army’s
procurement activities during the period under review.
Those listed for further investigation
include two former Chiefs of Army Staff, Lt.-Gen. O.A. Ihejirika (rtd)
and Lt.-Gen. K.T.J. Minimah (rtd); former Minister of State for Foreign
Affairs, Dr Nurudeen Mohammed; and three former Permanent Secretaries in
the Ministry of Defence – Mr. Bukar Goni Aji, Mr. Haruna Sanusi and Mr.
E.O. Oyemomi.
Also, the CEOs to be investigated
include Col. Olu Bamgbose (rtd) of Bamverde Ltd; Mr. Amity Sade of
Doiyatec Comms Ltd and DYI Global Services; and Mr. Edward Churchill of
Westgate Global Trust Ltd.
According to the committee, the total amount spent for procurement and operations within the period was N185,843,052,564.30 and $685,349,692.49.
According to the committee, the total amount spent for procurement and operations within the period was N185,843,052,564.30 and $685,349,692.49.
The report stated that the Nigerian Army
contracts awarded by the Ministry of Defence for the period under
review were often awarded without “significant input from the end-user
(Nigerian Army) and to vendors who lacked the necessary technical
competence”.
Giving an example, the committee alleged
that three contracts with a total value of N5,940,000,000 were awarded
to DYI Global Services Ltd and Doiyatec Comms Nig. Ltd (owned by the
same individual) for the procurement of military hardware including 20
units of KM-38 twin hull boats and six units of 4X4 ambulances fitted
with radios.
The committee found that both companies
collected N5,103,500,000, representing 86 per cent of the total value of
the three contracts, but only performed to the tune of
N2,992,183,705.31.
The committee also found that a contract
worth N169,916,849.77 for the procurement of 53 armoured vehicles’
spare parts, with 90 days completion time, was yet to be completed five
years after.
With respect to contracts awarded
directly by the Nigerian Army, the committee found that many of the
contracts were characterised by “lack of due process, in breach of
extant procurement regulations and tainted by corrupt practices.
“In this regard, a review of the
procurement carried out by Chok Ventures Ltd and Integrated Equipment
Services Ltd established that between March 2011 and December 2013, the
two companies exclusively procured various types of Toyota and
Mitsubishi vehicles worth over N3,000,000,000 for the Nigerian Army
without any competitive bidding.
“Though the committee found no credible
evidence of delivery of the vehicles, the vendors were fully paid based
on job completion certificate authenticated by the then Chief of
Logistics.
“Also, analysis of the various bank
accounts of the two companies showed transfers to individuals related to
then Chief of Army Staff”.
Similarly, the committee discovered that
between 29 April, 2005 and 19 October, 2010, the defence ministry
awarded two contracts to Progress Limited for the supply of 42 units of
BTR-3U armoured personnel carriers and spare parts for the Nigerian
Army. However, neither the ministry nor the army could provide the
contract agreements to ascertain the cost of the APCs.
“Although 26 of the APCs were delivered
in 2007 and immediately deployed for Peace Keeping Operations in Sudan,
the APCs scandalously broke down on induction,” it said.
The committee observed that the APCs did
not meet the operational requirement for the army, thereby causing
Nigeria international embarrassment and deprived her appropriate
reimbursement from the United Nations.
Also, between 19 September, 2013 and 11
September, 2014, the army awarded contracts to DICON amounting to
N4,329,985,000 for the procurement of Igirigi and Spartan APCs; with
arms and ammunition.
It said the contract for the procurement
of 40 units of NSVT heavy machine guns with accessories and 10 units of
Igirigi APCs were sub-contracted to Kennedy Logistics Ltd and Streit
Group FZE at the cost of $1,597,500 and $1,850,000, respectively.
The contracts were awarded to DICON at
the cost of $2,237,000 and $3,450,000 resulting in price differentials
of $781,000 (33%) and $1,600,000 (46.4%), respectively.
“Furthermore, the post-delivery
Technical Inspection Reports revealed that the APCs were unsuitable for
the North-east operation. However, sequel to the deployment of the APCs
in the North-east, one was destroyed by RPG fire, killing a colonel
inside.
“As at 13 May 2016, only one of the 10
Igirigi APCs deployed to the North-east was serviceable,” the report of
the committee revealed.
It was also found out that following a
request by the Office of the National Security Adviser (ONSA) on 13 May,
2013, the government released N1,340,000,000 for OPERATION BOYONA,
aimed at dislodging terrorist camps along the borders with Cameroun,
Chad and Niger.
“In August 2013, ONSA requested and got
approval for additional N2,000,000,000. However, DHQ and the services
confirmed non-receipt of any additional funds for Operation BOYONA.
“In March 2014, the ONSA made a case for
the release of N1,000,000,000 to sustain offensive operations against
Boko Haram insurgents.
“Although the amount was approved and
released, the committee could not establish the utilisation of the
funds. Similarly, in January 2015, the then Honourable Minister of
State, Foreign Affairs (HMSFA II) requested for N7,000,000,000 to
urgently fund the operation of the Multinational Joint Task Force
(MNJTF) in the Lake Chad Basin which was approved and released to ONSA.
“However, the committee could not
ascertain the utilisation of the funds from ONSA, DHQ and the services.
The returns made by ONSA to the committee showed that about
N1,500,000,000 was withdrawn in cash while several disbursements were
made to some companies that appeared not to have any relationship with
the MNJTF or any operations against Boko Haram,” the report of the
committee stated.
The committee, in its report, also
observed that contracts awarded to SEI and its two associated companies,
APC Axial Ltd and HK-Sawki Nig Ltd, fell short of established norms.
“Between May 2014 and March 2015, the
ONSA mandated CBN to release various sums totalling $386,954,000 to SEI
and the two associated companies for ‘procurement of technical
equipment’, without tying the money to particular items of procurement.
“Thus, the allotment of the funds was
left at the discretion of the vendor without input or consultation with
ONSA or the Nigerian Army. One of the new equipment SEI procured for the
Nigerian Army from Ukraine was BTR-4E APC.
“However, according to the designers of
the equipment, ‘some of the products sold to Nigeria were actually among
42 units designed for Iraq which subsequently rejected them due to poor
performance rating’.”
The committee also noted that between
September 3, 2014 and April 30, 2015, NIMASA funded accounts of the
Joint Task Force Operation Pulo Shield with various sums totalling
N8,542,586,798.58 purportedly to enhance operations of the Joint Task
Force in the Niger Delta.
“Analyses of the accounts of the Joint
Task Force showed that transfers totalling N6,277,698,885.13 were made
from the account. The then JTF commander could not justify these
transfers but confirmed that the sums were changed into dollars and
handed over to a private citizen.
“Additionally, he could not account for the balance of N2,264,887,914.45.”
The committee observed breaches of laws and regulations on payments of withholding tax (WHT) and value added tax (VAT) also. It said the unremitted WHT from 2007 to 2015 amounted to about N862,962,065.99, $2,093,710.06 and €2,700, respectively.
However, through the intervention of the committee, some companies remitted N109,843,495.40 to FIRS.
The committee observed breaches of laws and regulations on payments of withholding tax (WHT) and value added tax (VAT) also. It said the unremitted WHT from 2007 to 2015 amounted to about N862,962,065.99, $2,093,710.06 and €2,700, respectively.
However, through the intervention of the committee, some companies remitted N109,843,495.40 to FIRS.
The committee further recommended that the FIRS should liaise with the Nigerian Army to recover all outstanding payments of WHT.
The committee’s interactions with the
field operators also revealed that although the platforms and ammunition
procured for the Nigerian Army were deployed for the North-east
operations, most of them were over aged or expired and support spares
were insufficient or completely not available.
“The platforms were prone to frequent
breakdown without immediate recovery support. The non-adherence to the
procurement procedures resulted in procurement of some unreliable
equipment that reduced the capacity of the Nigerian Army in the
North-east operations and resulted in avoidable loss of lives and
equipment,” it stated.
The committee said on the basis of its
findings, the president approved its recommendations that the relevant
law enforcement agencies should carry out further investigations in
respect of the individuals and companies that were accounting officers
or played key roles in the Nigerian Army procurement activities during
the period reviewed by the committee.
SERVING AND RETIRED MILITARY PERSONNEL
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01
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Lt Gen OA Ihejirika (Rtd)
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former COAS
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02
|
Lt Gen KTJ Minimah (Rtd)
|
former COAS
|
03
|
Maj Gen JAH Ewansiha (Rtd)
|
former CTOP(A)
|
04
|
Maj Gen U Buzugbe (Rtd)
|
former COPP(A)
|
05
|
Maj Gen ER Chioba (Rtd)
|
former DG DICON
|
06
|
Maj Gen AI Muraina (Rtd)
|
former CAB(A)
|
07
|
Maj Gen EJ Atewe
|
former Commander JTF Op PULO SHIELD
|
08
|
Maj Gen DD Kitchener (Rtd)
|
former COLOG
|
09
|
Brig Gen DM Onoyiveta
|
former COS to COAS
|
10
|
Brig Gen AJS Onibasa
|
former OMT
|
11
|
Brig Gen M Mamman
|
HQ NAE
|
12
|
Col N Ashinze
|
former SA – NSA
|
13
|
Col AA Abubagaji
|
former AD Fin
|
14
|
Col AM Inuwa
|
former AD Fin (COPP)
|
15
|
Lt Col MS Dasuki (Rtd)
|
former NSA
|
16
|
Lt Col El-Hussaini Boyi (Rtd)
|
former AD Fin
|
17
|
Sqn Ldr M Oyaduogba
|
Finance Offr JTF Op PULO SHIELD
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18
|
96NA/43/8364 Cpl Abubakar Usman
|
SERVING AND RETIRED PUBLIC OFFICIALS
SERVING AND RETIRED PUBLIC OFFICIALS
|
||
01
|
Dr Nurudeen Mohammed
|
former HMSFA II
|
02
|
Mr Bukar Goni Aji
|
former Perm Sec (MOD)
|
03
|
Mr Haruna Sanusi
|
former Perm Sec (MOD)
|
04
|
Mr EO Oyemomi
|
former Perm Sec (MOD)
|
05
|
Mr Abdulrazak Salau
|
former DJSD MOD
|
06
|
Mr Jonah Ogunniyi Otunla
|
former DFA MOD
|
07
|
Mrs Josephine N Opara
|
former DFA MOD
|
08
|
Mr Abdullahi Maikano
|
former DFA MOD
|
09
|
Mr John Bamidele
|
former DFA MOD
|
10
|
Mr Buba M Gamawa
|
former DJSD MOD
|
11
|
Mr Tajudeen Gbenga Fetuga
|
former DFA MOD
|
12
|
Alhaji Salisu Shuaibu
|
former Dir Finance ONSA
|
CEOs OF COMPANIES
CEOs OF COMPANIES
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01
|
Col Olu Bamgbose (Rtd)
|
CEO Bamverde Ltd
|
02
|
Mr Amit Sade
|
CEO Doiyatec Comms Ltd & DYI Global Services Ltd
|
03
|
Mr Noam Sade
|
GM Doiyatec Comms & DYI Global Service Ltd
|
04
|
Mr Jimmy Ntuen
|
CEO Barnes & Tubbies Ltd
|
05
|
Dr O Ayandele
|
CEO TS-Y Ltd
|
06
|
Mr Hima Aboubakar
|
CEO SEI
|
07
|
Alhaji Gujja Attom
|
CEO Baram International Nig Ltd
|
08
|
Alhaji Maisudan Bello Mohammed
|
CEO Dalfam Nig Ltd,
|
09
|
Mr Lawal Oriyomi
|
CEO 2020 Nig Ltd
|
10
|
Mr Chinedu Onyekwere
|
CEO Chok Ventures
|
11
|
Mr Eleojo Peters
|
CEO Clover Nig Ltd
|
12
|
Mr Alon Nelken Samuel
|
CEO Hadassa Investment Security (Nig) Ltd
|
13
|
Mr Edward Churchill
|
CEO Westgate Global Trust Ltd
|
14
|
Capt Rohit Nandal
|
CEO Hercules Manufacturing (Nig) Ltd.
|
15
|
Mr JM Claassens
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CEO Conella Services Ltd
|
16
|
Mr Kingsley Onyeabor
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CEO Phoenix Technology Trading Company
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17
|
Mr Donald Peterson
|
CEO Richfield Technologies Ltd.
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18
|
Kaja Alexander Onyemachi
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CEO Jiangxi 299 Metal & Stones Ltd
|
19
|
Mr Ponnle Abiodun
|
Berwick Integrated Services Ltd
|
20
|
CEO
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Rapiscan System Ltd
|
21
|
CEO
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Dorema Nigeria Ltd.
|
22
|
CEO
|
Progress Ltd
|
23
|
CEO
|
Koncept Auto Centre Ltd
|
24
|
Mr Kime Egozi
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