Minister of Aviation Mr. Babatunde Omotoba said yesterday that he inherited only N3.5billion out of the controversial N19 billion special aviation intervention fund released by ex-president Olusegun Obasanjo for the resuscitation of the nation's ailing aviation sector.

The special aviation intervention fund was released by Obasanjo in the wake of the frequent air crashes that rocked the nation between 2004 and 2006. Two former aviation ministers, Professor Babalola Borishade and Chief Femi Fani- Kayode have already been arraigned by the Economic and Financial Crimes Commission (EFCC) for alleged misappropriation of the fund.

Earlier, the Senate Committee on Aviation had faulted many of the contracts awarded under the fund. For instance, the committee had declared that the controversial Safe Tower contract awarded for N6.5billion might have been inflated to the tune of N5billion. The 10-member panel unanimously agreed that the contract could have been awarded for N1.5bilion, as against N6.5billion paid to the Austrian firm, Avsatel GMBH, in 2006. Official documents tendered in respect of the contract had indicated that besides Avsatel, four other companies bid with quotations ranging from N.03billion to N2.03billion for the project. The companies and their quotations are: Aerovav Group of Canada (N2.03bn); Viasala and Frequenties (N1.50bn); Nav Control of France (N1.30bn) and NAMA - received quotation (N1.03bn)

The Senate panel observed that the contract was awarded to the highest bidder without advertisement or competitive tender. It also noted some abnormalities in the award and execution of the project.For instance, Avsatel's quotations had no bill of quantities or price specifications for the various components of the contract.

Besides, independent consultants were not involved at any stage of the contract process. Viasala and Frequenties quotation was backed by a bill of quantities and price specifications for every component of the contract.

The panel found worrisome the revelation that Viasala and Frequenties are the original manufacturers of the equipment needed for the execution of the contract. It was also discovered that Avsatel obtained the contract by deceit, claiming to be in consortium with Viasala and Frequenties. The claim turned out to be false. In the execution of the contract, the former was discovered to have procured the equipment from the latter.

Speaking after yesterday's Federal Executive Council (FEC) meeting in company of the Minister of Information and Communications, Prof. Dora Akunyili and the Minister of State, Foreign Affairs, Ambassador Bagudu Hirse, Omotoba said: "the total amount of money allocated for the special aviation fund was N19.5billion.Out of this, the federal government contributed N13billion while the remaining sum of N6.5billion was borrowed from Zenith and UBA. I inherited N3.5billion and out of that amount. N1.5billion was recently approved by the government for the payment of some contracts awarded for Lagos and Port Harcourt airports. About a billion naira is also being used to pay some other projects awarded" .

The aviation minister also announced the award of fresh aviation contract worth N1.3billion.

The contract is for the supply of nine E-one force-p711 (6x6) triple Agent Airport Fire equipment for the Federal Airports Authority of Nigeria (FAN), in favour of Messrs E-One Inc. in association with praise Resources Limited in the sum of $7.451million, plus N163million, with a completion period of 11 months.

Stressing that the fresh contract was awarded to ensure that Nigeria meets all international requirements that would guarantee safety and security not only at its airports, but in all arms of the aviation industry, the Aviation Minister said by November 2009 there would have been a total radar coverage for all the nation's airports.

He said weather readers and thunder storm detectors would also be provided in six airports across the country while a second runway would be provided for the Nnamdi Azikiwe International Airport, Abuja.

FEC also approved N3billion for the furnishing of the new head office of the Ministry of Foreign Affairs located at the Central District area of Abuja .