Charles Ajunwa
10 November 2008
opinion
Lagos — There have been series of allegations of fraud levelled against the leadership of the House of Representatives headed by Hon. Dimeji Bankole in the last few weeks. Charles Ajunwa writes on the bone of contention, asking if Bankole will be vindicated in the end
The House of Representatives, the lower arm of the National Assembly, parades 360 men and women elected by their constituents to make good laws that will impact positively on the well being of the citizenry. But allegations of corrupt practices levelled against the House leadership chaired by Hon. Dimeji Bankole in recent times, have put the House in the eye of the storm.
The House leadership was alleged to have inflated the prices of Peugeot 407 cars purchased for the Speaker, his deputy, the Chief Whip as well as the House committees. There were also allegations that the prices of some office items like television sets and laptops purchased for the use of House members were also inflated by Bankole.
This development has slowed down legislative business in the House because members found the allegation disturbing. At the centre of the controversy is Festus Keyamo, a legal practitioner, who in a letter dated October 19, 2008 entitled: "Open Request for Explanation Regarding Allegations of Fraud in the House" and addressed to the Speaker, asked the House to immediately explain to the people of Nigeria what it knew about the approval given for the purchase of 380 units of Peugeot 407 cars for the oversight functions of the committees of the House.
He claimed that there were discrepancies in the initial prices approved for the said cars as well as the actual amount that the same set of cars were purchased. Keyamo explained in the letter at an executive session of the House, that approval was given by members for the purchase of the cars for the oversight functions of its committees.
According to him, on the 13th of December, 2007, a memo was said to have been raised by one Hon. Aliyu Dikko, Deputy Chairman, House Committee on House Services to the Speaker, referring to the resolution and the decision to buy the said cars from Peugeot Automobile Nigeria Limited (PAN) which the Speaker allegedly signed himself and later forwarded to the Clerk of the House of Representatives and the Clerk of the National Assembly to act upon.
The Clerk of the National Assembly, Nasir Arab, was said to have awarded the contract for the supply of 380 units of 407 ST (Sports) cars to PAN at the rate quoted by PAN on the 3rd of January, 2008.
On the 21st of December, 2007, PAN was reported to have submitted a pro-forma invoice for 380 units of 407 ST Sports (auto) valued at N2,359,486,500 (two billion, three hundred and fifty-nine million, four hundred and eighty six thousand, five hundred naira) making the cost of each unit N6,209,175 (six million, two hundred and nine thousand, one hundred and seventy five naira). But Keyamo argued that the recommended public price list from PAN, applicable from 1st January, 2006, showed the different prices of three types of Peugeot 407 cars namely: the 407 Saloon Premium Pack (Automatic), the 407 Premium (Manual) and the Comfort (Automatic). The three types of cars, according to him, have 2.0 litre engines and likewise have a price tag of N6,000,000; N5,600,000 and N5,100,000 respectively including the Value Added Tax (VAT).
Keyamo who disagreed with the House on the claim of N2,359,486,500 said "what the company quoted for the 407 ST Sport (Automatic) at a unit price of N6.2 m (see annexure)which was eventually supplied was the 407 Comfort Automatic which is shown annnexure three to be worth N5.1 million. The difference therefore, per unit of cars supplied is N1,109,175.00 (One Million, One Hundred and Nine Thousand, One Hundred and Seventy Five Naira). This translates to a total of (Four Hundred and Twenty One Million, Four Hundred and Eighty Six Thousand, Five Hundred Naira) overpayment or misappropriated by the House under your Leadership.
"How do I know the difference in these cars? In the presentation from PAN, it stated that it was offering the 407 ST Sports Pack. Some of the features of this range was stated to include rear parking aid, leather seats, automatic folding side mirrors among others.(See Annexure 13).
"It is a statement of fact that the cars delivered to the National Assembly have fabric seats, do not have rear parking aids and definitely do not have automatic folding side mirrors. These cars are not the top of the range and are not Peugeot 407 ST Pack Sports auto and would not fit the description 407 Premium Pack Automatic. The fact is that what was delivered was the 407 comfort automatic and the price differential between the two ranges is about N1,109,175.00 (One Million, One Hundred and Nine Thousand, One Hundred and Seventy Five Naira) as stated earlier.
"Another curious thing about this transaction shows that the total amount for the contract, that is the sum of N2,359,486,500 (Two Billion, Three Hundred and Fifty-Nine Million, Four Hundred and Eighty Six Thousand, Five Hundred Naira), includes VAT. In the various payment vouchers (Annexure 7, 8 & 9) VAT was clearly included, which came up to N117,974,325.00 (One Hundred and Seventeen Million, Nine Hundred and Seventy Four Thousand, Three Hundred and Twenty Five Naira).
"Interestingly, it would appear that the House, under your leadership, went behind again to pay the same amount directly to the Federal Inland Revenue Services. Why pay twice for VAT? This obviously needs some explanations in case I am wrong. If you add the additional payment for VAT to the over-inflated cost of cars that were actually supplied, it would mean a total of N539,460,825 (Five Hundred and Thirty Nine Million, Four Hundred and Sixty Thousand, Eight Hundred and Twenty Five Naira) appears to have been fraudulently removed from the accounts of the National Assembly.
"One other question is this, is it possible that an order of this magnitude would have been placed with PAN and no discount was given at all? Dealers are known to give discounts of at least 10 per cent to customers who buy one unit. Would this not apply to 380 units bought directly from PAN? It would also be useful to find out what rates are given to other government agencies by PAN and why the National Assembly did not enjoy this. Or is it that a discount was given, but some persons enjoyed the benefit personally? It is only fair that the management of the National Assembly and your leadership explain how all of these could have happened? Nigerians need to know. My brother, Dimeji, how true are these allegations? Keyamo asked.
Responding to the allegation, House Committee Chairman on Media and Public Affairs, Hon. Eseme Eyiboh, accused Keyamo of acting the script of the people, he said, were afraid of the power probe report before it. While commenting on the purchase of the peugeot cars, Eyiboh said any Nigerian who felt aggrieved by the decision of the House to buy the cars for the committees should seek explanation from the Clerk of the National Assembly and not the Speaker.
To get to the root of this matter, Keyamo petitioned the Economic and Financial Crimes Commission (EFCC), urging the anti-graft agency to thoroughly investigate the matter and ensure that members of the House involved in the alleged car fraud are brought to book.
Keyamo in his petition to EFCC was said to have insisted that the management of PAN must offer explanations to Nigerians, on why vouchers issued on the purchase by the Department of Finance at the National Assembly "double-paid" Valued Added Tax (VAT) on the purchases. He alleged that the National Assembly's Director of Finance Unit issued a cheque for the payment of the contract sum of N1.5 billion in the first instalment, which the Clerk of National Assembly, was said to have paid for instalmentally.
While appearing before the House Committee on Ethics and Privileges, Keyamo in his presentation, stood his ground that the prices of the cars purchased by the National Assembly were inflated to the tune of over N500 million. And in his testimony before the panel, Arab said the National Assembly was statutorily exempted from VAT. Keyamo had insisted that the management of PAN owes Nigerians explanations on why vouchers issued on the purchase by the Department of Finance at the National Assembly "double-paid" Value Added Tax (VAT) on the purchases.
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