Leadership (Abuja)
Philip Nyam And Adesuwa Osunde
9 January 2009
Abuja — More than three years after a N30 billion contract was awarded to a Chinese company for the supply of one N17, 12 F7 and five other Chinese aircraft for military flying operations by the Nigerian Airforce, delivery of the aircraft is yet to be effected even after over 85 percent payment obligations had been made by the Nigerian government.
Meanwhile, the Airforce has submitted a budget proposal of N53.8 billion for the 2009 fiscal year in its capital, personnel and recurrent expenditure inclusive of the balance of N5 billion contract sum for the procurement of the aircraft.
The Chief of Air Staff, Air Vice Marshall Oluseyi Petinri who disclosed this yesterday at a budget defence before the House of Representatives committee on Air Force said the contract was awarded to a Chinese aviation firm at the cost of $551 million, equivalent of N30 billion, out of which the federal government has paid $500 million or equivalent of N25 billion, leaving a balance of N5 billion.
He said that government urgently needed the aircraft to facilitate its military operations within and out side the country explaining that the contract was approved by the Federal Executive Council (FEC) in line with the proposals submitted to the council by the Airforce following a resolution of top military officers in the Airforce.
In his words, "We have decided to take a few projects to be implemented this year in view of the experience in recent times that so many projects are proposed and its eventual execution always problematic, it's only natural that we embark on projects that can be implemented for an efficient oriented force".
The airforce chief explained that the federal government made payment in the hope that the delivery of the purchased aircraft would be made as scheduled adding that the authorities were making concerted efforts to ensure that supply of the aircraft is effected.
According to him, about N270 million was used for periodic maintenance of two engines and complete overhaul of its N17 aircraft by Duna Aviation Company Nigeria, based in Kaduna, saying the airforce wants to domesticate its operations and maintenance.
"This is the only company in Nigeria that can do intensive maintenance work on our aircraft, except Duna in Germany that manufactured the aircraft though the German company was liquidated and bought over by a Swiss aviation company".
Earlier, the Chairman, House Committee on Airforce, Hon Halims Agoda, condemned the colossal sums of money expended by the Airforce to repair grounded Aircrafts, saying such an amount of money can be used for other relevant infrastructure in the service.
He declared that the folding up of the company that manufactured the operational aircraft currently being used by the Airforce, is an indication that spare parts for the aircraft may no longer be available for procurement and that will pose threats to the desired maintenance of affected aircraft.
Meanwhile, the proposal of the Federal Government to expend N2.7bn on the rehabilitation of railway tracks across the country has been criticised by the committee on transport.
The committee also wanted to know if the government was not putting the cart before the horse by buying new locomotives before completing the rejuvenation of the country's rail network.
The chairman of the committee said: "We have been told that the president wants to rehabilitate the Nigeria Railway. Now, how does the government want to do that when we don't have workable tracks."
He asked: "And why buy new locomotives when the tracks are not good?" The Managing director of the Nigeria Railway Corporation, Mazi Nwankwo who was before the committee yesterday, told lawmakers that the sum of N2.7 billion was included in the 2009 budget for the rehabilitation of tracks, signals and other related projects.
According to him: "Under the 2009 budget, we are addressing some part of the rail system."
The railway boss admitted that the proposed rehabilitation would not be able to accommodate high speed trains of up to 100 kilometer capacity.
The newly appointed minister of Transport, Alhaji Isa Ibrahim was also yesterday commended by the House of Representatives for successfully defending the 2009 budget proposal for the ministry even as the ministry realised N31 billion in 2008.
The minister had during the budget defence before the House committee on land transport revealed that his ministry generated internally a revenue base of N31, 845, 053.31 between January and November 2008.
He explained that the capital allocation to the ministry in the 2008 budget amounted to N6. 888 billion while in the amended bill it was N6.159 billion lamenting that only N4.099 billion was released a situation he said affected all other segments of their performance.
For the 2009 budget proposal, the minister said the ministry submitted a total of N3. 234 billion and N3. 580billion as personnel cost to the Federal Ministry of Finance and the National Assembly respectively with a variance of N345 million.
The ministry also presented as overhead to FMF and NASS N635, 875, 059 and N611, 725, 059 respectively with a variance of N24, 150, 000 while the Capital cost to FMF and NASS run to N35, 874, 633, 245 and N35, 200, 091, 483 respectively with a variance of N674, 541, 762.
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