Adeleke Adeseri And Kenneth Ehigiator
4 September 2008
The face-off between government and Virgin Nigeria is getting messier with Abuja saying the airline is out to blackmail the country by creating an impression that it is being forced out of Nigeria towards achieving a pre-meditated shares review.
Feelers from the office of the Secretary to the Government of the Federation, SGF, Ambassador Baba Gana Kingibe, revealed that Nigeria has decided to be 'ahead of Sir Richard Branson, Virgin Atlantic founder' by setting up a high powered committee to review and reconcile steps to be taken in dealing with the unfortunate development.
The committee to be led by the SGF has the Attorney General and Justice minister, Mr Michael Aaondoaka, Transport Minister, Mrs Diezani Alison Madueke and the Minister of State, Air Transport, Mr Felix Hassan Hyat as members.
It will among other things determine the veracity of the shares review allegation against the airline. Also, sources say, government is convinced that it did not breach any agreement in asking Virgin Nigeria to originate its domestic flights from the new MMA 2 terminal.
"It is expedient at this time for the committee to determine if what VN says is the clause that gave it access to the international wings of Lagos and Abuja airports for domestic operations should be exposed," the source said.
It also became clearer yesterday why the federal government declared Virgin Nigeria's domestic operations at the Murtala Mohammed International Airport, Lagos, illegal and the reason that aspect of the memorandum of mutual understanding (MEMU) for the airline's creation not binding on it.
The MEMU, a copy of which was obtained by Vanguard, actually contained no clause which gave the airline access to the international wing of either the Lagos or Abuja airports for its domestic flights.
Presidential spokesman, Mr Olusegun Adeniyi, had said in a statement that the government has not breached the agreement between it and Virgin Atlantic Limited, Virgin Nigeria Airways' core investor and technical partner on September 28, 2004.
Adeniyi actually blamed the contentious aspect of the agreement on selfish government representatives who played key roles to midwife the flag carrier.
A copy of the 12-paged document confirmed that there was no such clause ceding use of the international airport in Lagos, or any other part of the country, to the Nigerian flag carrier for domestic flight operations. Rather, the clause was contained in what appeared to be an annexure attached to the main agreement signed between then Aviation Minister, Mallam Isa Yuguda, and Chairman of the Virgin Group, Sir Richard Branson .
The annexure in question, attached to the main agreement, was however written on Virgin Atlantic Airways' letter-headed paper.
Unlike the MEMU proper signed by Yuguda and Branson, the attached document was not signed by anybody, but rather bore the stamp of the Ministry of Aviation.
Part of the contentious attachment to the main agreement reads as follows: " We wish to write you in connection with the decision of the Federal Government of Nigeria to appoint Virgin Atlantic Limited as strategic investor in and technical partner to airline in accordance with the Memorandum of Mutual Understandings signed between the Federal Government of Nigeria and VAL on September 28, 2004.
"In connection with the said appointment and memorandum, and in order to meet the government's objective to prompt and safe commencement of operations by the airline (Virgin Nigeria), it is understood that the following arrangements will be put in place and/or permitted by your Ministry and/or the federal government for the commencement of the airline's operations or throughout the duration of VAL's relationship with the company."
Virgin Atlantic also in the attachment asked the federal government to provide the desired infrastructure at the Lagos airport as part of efforts to position it as a hub within West and Central Africa.
It stated further that to "ensure that the airport authorities co-operate with the airline to allow the safest and best service for the airline's customers," adding that to realise this, "the airline will be allowed to use the relevant international terminals in Nigerian airports, including the Murtala Mohammed Airport, Lagos and Nnamdi Azikiwe Airport, Abuja for all the airline's operations."
However, clauses in the MEMU precluded the airline from doing anything that would violate Nigerian laws and regulations, specially those relating to the nation's strategic security and economic interest.
"VAL should ensure that the airline (Virgin Nigeria) adheres strictly to any laws and regulations prescribing a specific code of conduct that may be issued from time to time for and on behalf of the FGN regulating the activities of the airlines in the Federal Republic of Nigeria," the MEMU stated.
Besides, Vanguard gathered that government is not too delighted that the establishment of the airline did not engender real foreign capital inflow into the economy, as the money was reportedly sourced locally.
The government source said beyond finding a replacement for liquidated Nigeria Airways, the federal government was actually desirous of foreign capital injection into the economy, which the formation of Virgin Atlantic Limited did not fulfil.
Be the first to Write a Comment!
Copyright © 2008 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
