THE NIGERIAN AIRWAYS FORGOTTEN WOUND

Those who looted Nigeria Airways must pay back

Draft white paper on the report of the judicial commission of inquiry for the investigation of the management of Nigeria Airways Limited

Preamble

It is generally agreed that the Nigeria Airways Limited has failed the nation in it’s mission of being a viable national carrier. The carrier is so badly afflicted that it can no longer perform the role which it was established.

By the time of the second coming of His Excellency, Chief Olusegun Obasango, GCFR, as a civilian president, the 32 air-craft he left in the fleet of Nigeria Airways Limited in 1979 had diminished to only 2 operating aircraft while it’s hanger was filled with unserviceable aircraft, a totally dispirited organization and work force and a company which was a pathetic shadow of it’s old self.

It is against this background that the president Olusegun Obasanjo set up a commission of inquiry for the investigation of the management of Nigeria Airways Limited (1983-1999) the following reference:

v  Ascertain with the effect from January 1983 to December 1999 the financial position and the financial management of Nigeria Airways Limited and for this purpose, examine all books of account and records and determine weather there has been any compliance with appropriate regulations;

v  Investigate the application of funds, including budgetary allocations, special grants loans for specific projects and proceeds from the sale of it’s products and services and make appropriate recommendations in the light of operative periods of 12 months and submitted it’s report on may 2002. Subsequently the federal Government, through a letter under the hand of the secretary to the Government of the federation reference No. 58988/S5/277 dated 4 June, 2002, set up a white paper drafting committee on the report. The committee was given three weeks within which to submit it’s report.

      The white paper Drafting committee observed that the enabling Act for the  

          Constitution of such bodies provides in section 1 of the Tribunal of inquiry and  

          not judicial commissions of inquiry as was erroneously effected with the

          Constitution of this body. Government is accordingly advised to note this

          Observation.

The committee having carefully studied and analyzed the findings and recommendations contained in the four volume reports submitted by the judicial commission of inquiry for the management of Nigeria Airways Limited and for this purpose examine all books of accounts and records and determine whether there has been compliance with appropriate regulations.

Recommendation

 Mrs. Saliu afore-named be traced and made to refund to NAL the sum of N 1,482,982.00

Comments:

Government accepts this recommendation and hereby directs the federal Ministry of justice and Nigeria police force to recover the fund. Alobo Tonye Graham Douglas

Maj. Gen. (rtd) Olu Bajowa Alhaji M. Abdusalem

Messrs. U.S. H. Maigida and T. Mgbor Should refund to NAL jointly and severally the sum of US $3 Million being financial damages to NAL occasioned by their unilateral acts of terminating that contract.

Comments:

Government accepts this recommendation and directs appropriate agencies of government to recover the money

Recommendation:

The sum of N2.0 million unlawfully approved by Captain Mohammed Jeji as imprest account for miss G.N Hembah be recovered from Captain Mohammed Jeji.

Recommendation

For the very bad management decision which resulted in the loss of N40 million of NAL funds. It is the considered view of the commission that Captain Mohammed Jeji and NAL’s Director of finance, mr. Afam Nwagboso should refund to NAL the sum of N40 million which they lost to CMB, since no reasonable management which had the interest of NAL in mind would have used CMB as the collection bank when financial institutions such as first bank of Nigeria Limited, union Bank of Nigeria PLC  were available with better and more widespread branch network nation-wide, additional to their being very well establish financial institutions.

Comments:

About some specific project and process of managing the sale of it’s products and services and make appropriate recommendations in the light of the findings

v  Verify, evaluate, ascertain and authenticate the level of the indebtedness of the company and ascertain the genuineness or otherwise of such debts and liabilities and appropriate responsibilities appropriate;

v  Ascertain the marketing policies of the company with effect from January 1983 to December 1999 and determine the efficiency and impact on the revenue of the company.

v  Assess the procurement and maintenance policies of the company havingregard to international standards and the effect of such action on the general administration of the company:

v  Determine the number of aircrafts in the fleet of the company and the present level of the viability:

v  Make appropriate recommendations in ways and means of recovering any sums lost by the company and recommend measures to be taken to prevent or forestail future occurrence and

v  Investigate any other matters and make any other recommendations deemed appropriate for the good management of the company.

v   

The composition of the commission was as follows:

     Chairman, Honourable justice Obiora Nwazola (rtd) : members, Chief (DR) Chimizie Ikeazor (SAN): member, Chief Yemi Adefulu, member, Dr. Mfon Armana ; member, Alhaji Mika Anache; member, Chief Eni Okoi; secretary:Mrs. Cathrine Okon.

The judicial commission of inquiry for the investigation of the management of NAL worked for the cumulated periods and gave their recommendations contained in the four volume reports submitted by the judicial commission of inquiry for the management of NAL, submitted the views/comments on the report to the government.

The white paper Drafting committee notes the issues in the background to the commission’s recommendations as contained in volume 4 of it’s report particularly the following:

v  The argument in favour of carrying out a turn around for NAL as opposed to the creation of a new company also notes the efforts made by the present management of NAL towards reviving the ailing airline:

v  The identification of the dramatis ants personae in Nigeria Airways saga and in line with the anti corruption stance of the present administration, will ensure that appropriate sanctions are applied to any individual or group of individual that might have through acts of commission or omission contributed to Nigeria Airways debacle:

v  That the various channels suggested by the commission through which looted funds from NAL can be recovered will be explored as well as others in ensuring that public funds looted or misappropriated from NAL are recovered: and

v  The position canvassed by the commission on the need for government to bail out NAL and the various example given of the government of other countries which had carried such bail out of their national carriers

Government’s position on the recommendations of the judicial commission of inquiry

Term of Reference A

Ascertain with effect from January 1983 to December 1999, the financial position and the financial management of NAL

Government accepts this recommendation and hereby directs the federal ministry of justice and the Nigeria police force to recover the sum of N1,482,982 from Mrs.Saliu.

Recommendation

Mrs. Isiaku Arowosofe and Mrs. Irabor should refund the sum of N194,445.86. On their failing to do so they should be prosecuted for the offence of conspiracy and stealing.

Comments:

Government accepts this recommendation and directs the federal ministry of justice and the Nigeria police force to recover the sum of N194,445.86 from these two ex-staffers. They should, in addition, be prosecuted in order that this may serve as deterrent to others.

Recommendation

Transmission travels should refund to NAL the sum of N500,000 being the value of the ticket fraud perpetrated by that company against NAL’s financial interest

Comments:

Government accepts this recommendation. The federal ministry of justice and the Nigeria police force are hereby directed to recover the sum of N500, 000 from transmission Travels

Recommendation

Olaseinde Olatokun, Aikoroje and Erukwere, should  jointly and severally refund to NAL the sum of N160,000 (one hundred and sixty thousand naira) and on their failing to do so should dully prosecuted for the offence of stealing and fraudulent conversion of property.

Comments:

Government accepts the recommendation

Recommendation

The CES Travel contract Agreement                                                          

  The commission recommends that: these conditions,

Comments:

Government accepts this recommendation and hereby directs the federal ministry of justice and the Nigeria police force to set the necessary machinery in motion to recover the sum of N40 million from the two ex-officials of NAL

Recommendation

The sum of US $2,359,546.93 duly ascertained by NAL management on fraudulent mamipulation of excess baggage and hand baggages allowance etc by NAL jeddeh station  be recovered from NAL’s jeddeh  Area marketing manager, Alhaji Ibrahim Bala. On his failing to do so the commission recommends that he should be duly presecuted with regards to the offences of stealing and fraudulent convention. The commission also recommends that the fore-named area marketing manager. If still employed by NAL should be dismissed from NAL service/employment.

Comments

Government accepts the recommendations.

  Recommendation

That Captain Mohammed Jeji should give full account of his disbursement of the sum of US$12 million paid by NAL as royalty by Swiss Air.

COMMENTS

Government accepts this recommendation

Recommendation

That Engineer A.A Agom NAL’s MD. NAL’s DPS, Mr. Idakula NAL’s legal Adviser should jointly and severally refund to NAL, the entire sum of N6, 884,677.72 following their ill advised renewal of the Adwork contract Agreement to the financial disadvantage of NAL.

Comments

Government accepts this recommendation and directs the federal ministry of justice and the Nigeria police force to recover N6,884,677.72 from the three ex-official of NAL.

RECOMMENDATION

The termination of appointment of the four engineers in view of the commission is characteristic of faulty decision-making during the Gana regime. The four Engineers should be compensated by NAL for the raw deal meted out to them by NAL at the instance of Captain B.Allwell Brown. The 4 (No) Engineer are: K. Bruce, Engineer O.O.Idowu, Engineer A.C.Dunkwu  and Engineer C.E.IIoeje.

Comments:

Government accepts this recommendation.

Recommendation

That the prolong rental dues and occasions of over pricing during the Garuda maintenance and D-check with Hak Air totally US$4,052,234.50 be recovered from Alhaji Jant Ibrahim.

Recommendation

That the 3 No engineers who were dismissed by Alhaji Jani Ibrahim under decree 17 should be re-instated into NAL’s services or in lieu duly compensated by NAL for their premature loss of service. The engineers are Engr. C.E.Diala,Engr. Uche Nwoje and Engr. P.E. Adah.

Comments:

Government accepts this recommendation that thye three engineers be compensated. Their dismissal should therefore be commuted to retirement from service. The period of their dismissal from service should therefore be taken into consideration in calculating their terminal benefits.

Recommendation

That the outstanding sum of US$1,225 million that he paid to Alpine Aviation without and guarantee is recovered, while the sum of N26,959,883.00 Jos. Mr.D.A Adebiyi- N86,179.00 Deen Travels- N629,834.00, Lagustr Ttavel- N214,854.00, Assab Travels – N8,493,796.00 H&B Travels – N6,885,046.00, All Staff Travels – N3,027,354.00, Classique Travels – N2,421,105.00. 1996 Kinshaha, Mgbengele M. N123,280.00

3. Each section of the Armed forces in occupation of NAL properties should be given up to the end of the year 2001 to enter into negotiation with NAL for the lessen to it of the properties they occupy provided they pay economic rents on them

4. regarding the properties at 13 Thopson Avenue, Ikoyi. Lagos occupied by UNDP, the commission believes that the occupation may have been effected under a bilateral agreement between the federal Government and UNDP, unfortunately NAL  had no records of communication leading to the occupation of that property by UNDP. We recommend that the federal Government should use it’s auspices to get to the root of this matter. If the federal Government ceded the property to UNDP, NAL should be appropriately compensated for the take-over of this prime property.

Comments

Government accepts all the recommendations under 18A i-iv on NAL’s property and directs the appropriate arms of government to initiate steps towards implementing the recommendation viz: federal ministry o Aviation, ministry of Defence, ministry of foreign Affairs and the federal ministry of finance

Recommendation

Ayobo and other properties.

The commission recommends the immediate cancellation of the allocation made to the below listed non-NAL staff. The plots are to revert to NAL for re-allocation to their staff.

Comments

1. government accepts this recommendation NAL should take steps with the assistance of the federal ministry of works and Housing in implementing the decision.

Term of reference B

Investigate the application of funds, including budgetary allocations, special grants,loans for specific projects and proceeds from the sale of it’s products and services and make appropriate recommendations in the light of the findings

Recommendation 1

Air Cdr. (rtd) Bernard Banfa and Rear Admiral (rtd) Patrick should refund to NAL the cost of 1 No. A310.

THE PUNCH, WEDNESDAY, NONEMBER 26 2003 PAGE 45

ARE THESE LISTED OFFICIAL REFUND THE MONEY STATED IN THIS PAGE, THE ANSWER IS NO

ARE THE RETIRE STAFFS PAID THEIR ENTITLEMENT?

THE ANSWER IS NO

VISIT MY BLOG FOR MORE REMINDER SINCE CORRUPT OFFICIALS ARE SOMETIMES LEFT UNPUNISH BY THE NIGERIAN GOVERNMENT