Abdul-Rahman Abubakar
26 June 2008
Abuja — Agents of the Economic and Financial Crimes Commission (EFCC) yesterday whisked away Mr. George Eder, the Austrian managing director of M.S. Avastel, over the non-execution of N6.5 billion contract for the building of Safe Towers at Lagos, Abuja, Kano and Port Harcourt International Airports. He was nabbed inside a Senate hearing room.
Mr. Eder was at the Senate to testify before the Aviation Committee investigating the spending of N19.5 billion Aviation Sector Intervention Fund. Its Chairman, Senator Anyim Ude (PDP, Ebonyi South) ordered his arrest after consulting with Deputy Senate President Ike Ekweremadu, who presided over yesterday's plenary session.
M.S. Avastel of Vienna, Austria was paid N6.4 billion, representing over 90 percent of the contract sum, but it failed to put anything on ground, a situation which angered the committee. It then ordered the National Assembly Security to take Eder into custody.
EFCC agents later came to the National Assembly in a Hiace bus and took Mr. Eder away. Daily Trust gathered that the said contract was awarded by former Aviation Minister Prof. Babalola Borishade, who is expected to appear before the Senate panel Monday.
At its public sitting on Monday, the Senate Committee on Aviation heard from a consultant, Captain Daniel Omale that the Federal Airports Authority of Nigeria (FAAN) inflated the contract sums for two projects by N7 billion. Omale said the contract for the building of Safe Towers at the four international airports awarded to M.S. Avastel was inflated by N5.5 billion.
Omale also said FAAN inflated contract for Lagos International Airport Runway awarded to PW Nigeria Limited by N1.5 billion. He said the contract, which was awarded for N3.5billion, should have cost only N2 billion. Captain Omale said despite the spending of N6.4 billion of the N6.5 billion taken from a bank as loan to improve the nation's airports, there was no commensurate improvement to justify the spending.
Also testifying before the panel yesterday, Deputy Managing Director of PW, Mr. William Alli said the construction company never visited the site for Lagos Airport Runway before being awarded the contract and was not aware of the fact that it is impossible to expand the runway. He said the project now suffers inadequacy of funds and requires a balance of N1.3 billion to be paid by FAAN for it to complete the project.
But Chairman of the committee Senator Ude said Senate is satisfied that the contract was inflated and that PW must complete the project saying, "We are also satisfied that you have refunds to make to Nigeria."
Supporting Captain Omale's position, a member of the Senate Committee, Senator Ikechukwu Obiorah (PDP, Anambra South) said the actual cost of the Lagos Airport Runway was supposed to be N1 billion, excluding the 100% mark-up profit of N2 billion.
Meanwhile, Senate President David Mark on Tuesday exposed attempts by some lobbyists believed to be doing the biddings of persons uncomfortable with the ongoing investigative hearings in the Senate to compromise senators through monetary inducement.
Speaking during the opening of the investigative hearing into spending of N19.5 billion Aviation Special Intervention Fund by the Senate Committee on Aviation, Senator Mark said some persons have approached members of panels with bribes with the aim of influencing them to conceal facts.
According to him, "I appeal to all and sundry to give the Committee a free hand to do its work. Please there is no point in coming and attempting to bribe them because we should call a spade a spade. I think people are making that effort."
He said senators have vowed to do what is right adding that, "They would rather die than suppress the truth. The distinguished senators will rather lay their lives than take bribes and write a wrong report. Nobody should try it because efforts and attempts are already being made and I think it is unnecessary. If you don't want this in public, you can be heard in camera and we are going to get the facts. The important thing is for us to get the facts."
"This is not a probe to indict anybody, this is not a probe to send anybody to jail, it is a fact finding public hearing. So that we know exactly what the problems are. And once we identify the problem I believe that we'll be fifty-percent done in finding a realistic solution. My desire and the desire of all the Senators, and the desire of all of us seated here is that we should not just be the largest country in black Africa by word but by deed and in action and in what we do. And the only way we can achieve that is to realistically assess our problems and find practical solutions," Mark said.
The Senate President warned such persons to desist from their acts and said, "We are not here to witch-hunt anybody or group. The investigations are only aimed at revamping ailing sectors of our economy."
He called on his colleagues serving in various probe committees not to leave any stone unturned to unravel the problems in the sector so as to boost their contribution to the nation's economy.
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