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.
But Arab said the National Assembly was statutorily exempted from VAT. While the Director of Planning and Legislative Budgeting, Mr. Muhammed Kabir, told the committee that what Keyamo paraded as evidence of double-VAT payment, might have been the payment for delivery which was made twice on February 29, 2008 and June 9, 2008 through the Central Bank.
Arab's submission was acknowledged by PAN, which said the transaction went with a withheld tax and a N75 million-tax since remitted to the Federal Government. PAN's Acting General Manager, Mr. Umar Kaita, who appeared before the committee described the allegations by Keyamo as unfortunate, saying the documents he paraded might have been forged, as they contradicted the documents that PAN held on the transaction that was sealed on May 28, 2008.The House after the public hearing conducted by the Ethics and Privileges Committee, challenged all those still aggrieved by the purchase of the cars to direct their complaints to EFCC and ICPC.
While the leadership of the House was trying hard to justify the purchase of the Peugeot cars and clear itself of Keyamo's allegations of fraud, another scandal broke out on November 2, this year, a day after the Speaker marked his one year in office as some newspapers reported that Bankole allegedly inflated the prices of cars purchased for himself, his deputy and the Chief Whip as well as the purchase of office television sets and laptops and everything running into over N500 million.
But last Wednesday, the management of PAN and the National Assembly Bureaucracy, described the documents paraded by Keyamo as fake. Reacting swiftly to this second allegation, Eyiboh said it was baseless and only existed in the minds of those behind the circulation of the documents.
Eyiboh who said the offensive publication was sponsored by members who were aggrieved over the re-composition of the House standing committees, admitted that it was always the case whenever committees of the House or Senate are reconstituted and when some members fail to secure nomination into preferred committees.
Eyiboh in a statement entitled: "Corruption: Fresh Allegations of Fraud Against Speaker Baseless," challenged members allegedly behind the false allegations to raise it through established House rules.
"The leadership of the House of Representatives and the generality of the members are worried that some members who have decided to mask themselves, claiming to be whistle blowers have decided, to go to town again for a motive that it would be proper for every discernible mind to now ask what really is their intention?
"They are circulating documents purporting to be documents reflecting purchases of vehicles and television sets by the management of the House of Representatives with an intention of discrediting and undermining the leadership of the House of Representatives. We want to unavoidably say very clearly that one, if anybody and for that matter, wants to be a whistle blower, he doesn't need to mask himself. No member of the House of Representatives can be punished for being a whistle blower because the Speaker has no power to dismember or withdraw any member of the House. All the members of the House will run their full course, unless they are removed through constitutional and legal means.
"So, for anybody to just mask himself or herself, what is he or she afraid of? He should come out straight and raise the matter on the floor of the House after all, we have such provisions in our House rules.
In his own reaction, Bankole who has been quiet over the fraud, said he would remain calm until the ongoing probe of N2.4 billion car purchase was fully investigated by the anti-graft agencies.
Bankole who made this remark in Ilorin, Kwara State last Wednesday, while on a one-day official visit to the state, to assess the facilities at the state hajji camp for "Hajji 2008," said: "The people of the country have the right to know how their money is being spent and this is exactly what is happening now in the House of Representatives.It is proper for every Nigerian to ask questions on how their money is being spent especially when you have the House of Representatives asking questions about how monies are being spent in Nigeria so far and it is a matter of time before they come and ask me how money is being spent in the House. Let the investigation take its course, okay? Then, we can now make comments after then. I will remain calm and collective for now and allow the people have their say and by the grace of God, we too, we now have our own say," Bankole declared.
The question on the lips of many now is, whether Bankole will come out clean from these allegations of fraud against him or whether he will go the way of his predecessor, Hon. Patricia Olubunmi Etteh, who was forced to resign her position as Speaker because of allegations of contract inflation. Only time will tell.
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