An investigative panel set up by President Muhammadu Buhari to
audit procurement of arms by and for the Nigerian military between 2007
until he assumed office in 2015 submitted another interim report on Thursday.
The Committee on Audit of Defence Equipment Procurement in the
Nigerian Armed Forces completed the first of its piecemeal reports in
November 2015 in which a former National Security Adviser, Sambo Dasuki,
was indicted for allegedly mismanaging over N13 billion budgeted for
procurement of arms.
Mr. Buhari ordered immediate arrest of Mr. Dasuki as recommended by
the 13-member committee and he had since remained in detention amid
disputes about how he should be prosecuted.
In February 2016, the committee, which consists of individuals
pooled from mainly military or security background, visited military
facilities across the country to carry out a physical examination of
military weaponry and equipment and verify if new deliveries were taken,
how they were purchased and their quality.
The panel then found over a dozen former military chiefs culpable in fraudulent arms deal within the period under review.
A former Chief of Defence Staff, Alex Badeh, and Adesola Amosu, a
former Chief of Air Staff, were subsequently indicted. They are facing
trial in various high courts.
The report submitted to President Buhari on Thursday is third in
the series, and it uncovered how ex-political appointees, private
individuals and former military chiefs, including two erstwhile Chiefs
of Army Staff, were suspected culpable in alleged fraudulent diversion
of funds meant for arms procurement.
Azubuike Ihejirika and Kenneth Minimah, who both served under
President Goodluck Jonathan, were recommended for further investigation
by the committee.
Mr. Buhari was, however, criticised for allegedly doctoring the outcome of the latest report.
Critics said the panel indicted a close ally of Mr. Buhari and the
current Minister of Interior, Abdulrahman Dambazau, but that the
administration compelled the committee to have his name removed before
publishing the report.
The government denied the allegations.
As supporters and opponents argued over the impact the alleged
protection of Mr. Dambazau would have on Buhari government’s much-avowed
zero-tolerance for corruption, PREMIUM TIMES looked at the 10 biggest
revelations from the latest arms panel findings.
1) Receiving big to deliver little:
The committee, led by Jon Ode, a retired Air Vice Marshal, found
that, “3 contracts with a total value of N5,940,000,000.00 were awarded
to DYI Global Services Ltd and Doiyatec Comms Nig Ltd (owned by the same
individuals) for the procurement of military hardware including 20
units of K-38 Twin Hull Boats and 6 units of 4 x 4 Ambulances fitted
with radios.
“The Committee found that the 2 companies collected
N5,103,500,000.00 representing 86% of the total value of the 3 contracts
worth N5,940,000,000.00, but only performed to the tune of
N2,992,183,705.31.”
2) Inconclusive delivery:
In another instance, 2 contracts were awarded to Baram
International Nigeria Limited, amounting to N420,726,799.20 for the
procurement of 53 Armoured Vehicles Spare Parts at the cost of
N169,916,849.77 and that of Ballistic Vests, Night Vision Binoculars and
3 Unmanned Aerial Vehicles at the cost of N250,809,949.50. Sadly, the
contract worth N169,916,849.77 with 90 days completion time is yet to be
completed 5 years after.
3) ‘International embarrassment’:
Similarly, between 29 April 2005 and 19 October 2010, the MOD
(Ministry of Defence) awarded 2 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 MOD nor the NA 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.
The Committee observed that the APCs did not meet the operational
requirement for the Army, caused Nigeria international embarrassment and
deprived her appropriate reimbursement from the United Nations.
4) Circumventing due process:
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, 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
N3,000,000,000.00 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, analyses of the various banks accounts of the two companies
showed transfers to individuals related to the then Chief of Army Staff.
5) A brave colonel paid the ultimate price for the greed of his superiors:
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.
6) Double jeopardy for troops attached to Operation Boyona:
It was also found out that following a request by the ONSA on 13
May 2013, the Government released N1,340,000,000.00 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 N2,000,000,000.00. However, DHQ (Defence
Headquarters) and the Services confirmed non-receipt of any additional
funds for Operation BOYONA.
7) Fictitious firms as conduit for fraudulent proceeds:
Similarly, in January 2015, the then Honourable Minister of State
Foreign Affairs (HMSFA II) requested N7,000,000,000.00 to urgently fund
the operation of the Multi National Joint Task Force (MNJTF) in the Lake
Chad Basin which was approved and released to ONSA.
However, the Committee could not ascertain the utilization of the
funds from ONSA, DHQ and the Services. The returns made by ONSA to the
Committee showed that about N1,500,000,000.00 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.
8) How dollars became orphaned:
The Committee 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 3, 2014 and March 2015, the ONSA mandated
CBN to release various sums totalling $386,954,000.00 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 fund was left at the discretion of the
vendor without input or consultation with ONSA or the Nigerian Army.
9) When NIMASA sub places with the CBN:
The Committee also noted that between September 3, 2014 and 30
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
10) Looting without limit:
Finally, going by the last flag raised by the committee, it
appeared there was no limit the suspected looters couldn’t go, as even
accrued tax revenues were not remitted to the appropriate authorities.
The Committee observed breaches of the laws and regulations on
payments of With-holding Tax (WHT) and Value Added Tax (VAT). The
unremitted WHT from 2007 to 2015 amounted to about N862,962,065.99,
$2,093,710.06 and €2,700.00 respectively.
However, through the intervention of the Committee, some companies
remitted N109,843,495.40 to FIRS. The Committee is of the opinion that
the Federal Inland Revenue Services should liaise with the Nigerian Army
to recover all outstanding payments of WHT
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