The controversial bulletproof cars
allegedly bought for the Minister of
Aviation may be the costliest ever
bought by any government official in
Nigeria, it emerged yesterday.
Besides, The Nation obtained details of
the transaction.
The Ministry of Aviation is alleged
to have spent N255 million on two
armoured BMW cars for the minister.
Aside this, it was gathered that the
Nigerian Civil Aviation Authority (NCAA) will be paying 19 per cent cumulative nterest to First Bank, which financed the cars and 54 other “operational vehicles”.
It is estimated that the bank stands to
make about N122.170m from the deal
spread over three years.

A source explained the price difference
for the armoured vehicles. He said: “It is not a car you buy across the shelf. It is a customised vehicle and any customised product is not something that you can see in the competitive market. It is based on the negotiation of the person that is buying. It is based on the agreed specification between the two of you that will determine the price.”
The source cleared his agency of any
financial irregularities, saying “we are
not involved in that because our own is
to finance the loan. So if the person who
is getting the loan is satisfied with the
price, that is when you are submitting
back to us.”
Three banks were initially shortlisted for
the transaction. They are Stanbic IBTC,
Union Bank and First Bank. Thereafter a
letter “conveying the approval of the
honourable Minister of Aviation for the
engagement of First bank based on
competitive proposal was sent to us,”
the source said, pleading not to be
named because he is not permitted to
talk to the media.
The government agency that
negotiated the terms of the loan
required to buy the cars gave the banks
90 per cent all inclusive terms, 18 per
cent interest and then 0.5 per cent
management fees to be charged by the
bank.
Thereafter, the car dealers, the source
said, sent their invoices. Metropolitan
Motors was to supply 54 vehicles.
Coscharis supplied the two armoured
vehicles. First bank paid the money
directly to Metropolitan and Coscharis.
Coscharis was paid in August.
Metropolitan got its cash in September.
Reminded that the agency spent more
than what it got approval for, the source said “well, the answer is that the budgetary allocations for 2013 for this operational vehicle is N240 million for
the total cars they bought, that is why
they used this auto loan instrumental
payment arrangement”.
“The total amount for all the 56 cars is
N643 million, but the impact for the
first year is about N139 million, so that is why we are saying they did not spend above the budgetary allowance that the House approved, which is N240 million.
So they are still working within that
because they are not paying the whole
money. Next year, they will get another allocation, so they will still pay from it.
So that is it. It is rolled over for 36
month” he said.

Source: thenationonlineng.net/new/bank-financed-n255b-bulletproof-cars-54-others/

No be who carry shiiit na im fly go support? *hiss*

I said it wow that interest rate is awful high 18% I thought Government would get a better rate because less risk involved What does an average citizen pay on loans? So the interest rate is almost as much as the car jeez zzz

This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah?

Sincere 9gerian: This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah?

all I can say is that Nigerians are getting ready to get f ed up like Americans with Credit 18% REALLY. This is obviously a common practice in the FG the people's outcry should be for how much money they get per year for all these perks really do they need new cars new furniture etc every year the allowances are too much, but this has nothing to do with her that is the system! According to reports Fashola already dash his and it is not even 3 years yet

This is issue is simply been over flogged

Jeel: This is issue is simply been over flogged

I agree with you on this....Several politicians have done worse and gone unpunished and even unnoticed.
I wonder why this has been dragged to this extent. Even the so-called critics, activists and opposition members have done worse.

Another line of defence from the hardened criminals.

If I make a budget to purchase and I go on with a finance lease to acquire the same asset, what I have done is to violate that budget as finance lease is like taking a loan. It must be stated explicitly in a budget and in subsequent years lease payments must be included, in the budget till all your liabilities are fulfilled.

What the hardened criminals have done here is even to put them in more soup. They are rogues and you will need to torture them before they say the truth.

Someone is bout to loose her job.

eightsin: Someone is bout to loose her job.

That is almost impossible my brother....not guilty until proven guilty !!!

ballabriggs: Another line of defence from the hardened criminals.

If I make a budget to purchase and I go on with a finance lease to acquire the same asset, what I have done is to violate that budget as finance lease is like taking a loan. It must be stated explicitly in a budget and in subsequent years lease payments must be included, in the budget till all your liabilities are fulfilled.

What the hardened criminals have done here is even to put them in more soup. They are rogues and you will need to torture them before they say the truth.

Then if the NCAA, not even the Minister, is 'guilty' of wrong and extravagant expenditure that might have been somewhat away from strict adherence from Procurement laws, BUT NOT that they were corrupt in this instance. The fact that a lease agreement with Banks was used in the acquisition of those cars shows that accusation of corruption against the Minister or Agency has been largely overflogged and a bit exaggerated. WASTE and Extravagant Spending, Yes; but, Corruption in other to line their pockets, No.

Sincere 9gerian: This is self-explanatory. Add this to the information in the thread https://www.nairaland.com/1495785/armoured-car-controversy-what-definition then the question that readily comes to mind is what really are the "sins" of Oduah?

Her major sins are Abuse of Office, waste and fraud, judging by the information available in public domain.

1. Abuse of Power:

a) The NA which is the arm of government empowered to appropriate funds has denied ever appropriating any sum of money for the procurement of armoured vehicles in the 2013 Appropriation Act. The minister on her own gave the approval without recourse to the NA. A violation of the Appropriation Act.

b) Such an amount is beyond the threshold of the NCAA, and needs a FEC approval. For the Presidency not to have come out to acknowledge ever approving such, also amount to Abuse of office and misconduct.

c) The Bureau of Public Procurement has also denied ever issuing a 'Certificate of No Objection' to NCAA or the Ministry of Aviation. It means NCAA violated the Public Procurement Act. Another Abuse of Office.

2. Fraud: Even if we should go by the argument of the NCAA that the cars were procured under a lease agreement. N240million was approved for the purchase of operational vehicles, an extra N403million was spent bringing it to a total of N643million borrowed from First Bank. The lease agreement would yield an interest of N122million at the end of the 3 year repayment plan. N122million added to N643million will make it N765million for the purchase of 54 Operational vehicles. The question begging for answer is;

a) Even if the 54 operational vehicles were all captured in the Mid-Term Expenditure Framework(the planning tool), nothing stops the Ministry/NCAA from procuring the vehicles as captured in the MTE Framework for a period of 3 years. Why didn't the ministry approach the FEC to send a supplementary appropriation bill to the NASS for additional funds to be appropriated if the need for urgency arose? N122million would be fraudulently drained from public purse at the end of 36months repayment plan.


3. Waste: Buying 2 cars for N255million. The President in the 2012 budget requested for 2 bulletproof vehicles for himself and the Vice President at the cost of N280million, but had to jettison the idea due to public outcry. Why should a ministry engage in such waste? A ministry we are told is struggling to send its workers for overseas training? N122million cumulative interest is also a waste.


These allegations are enough for the Presidency to sack all those involved.

*Note; till date no one is able to verify if those armoured vehicles were procured because the agency have denied journalists, physical inspection of the vehicles. It is possible those cars were not procured, but paper work done in order to defraud Nigeria. There is also the new revelation from FAAN.

take dat: Her major sins are Abuse of Office, waste and fraud, judging by the information available in public domain.

1. Abuse of Power:

a) The NA which is the arm of government empowered to appropriate funds has denied ever appropriating any sum of money for the procurement of armoured vehicles in the 2013 Appropriation Act. The minister on her own gave the approval without recourse to the NA. A violation of the Appropriation Act.

b) Such an amount is beyond the threshold of the NCAA, and needs a FEC approval. For the Presidency not to have come out to acknowledge ever approving such, also amount to Abuse of office and misconduct.

c) The Bureau of Public Procurement has also denied ever issuing a 'Certificate of No Objection' to NCAA or the Ministry of Aviation. It means NCAA violated the Public Procurement Act. Another Abuse of Office.

2. Fraud: Even if we should go by the argument of the NCAA that the cars were procured under a lease agreement. N240million was approved for the purchase of operational vehicles, an extra N403million was spent bringing it to a total of N643million borrowed from First Bank. The lease agreement would yield an interest of N122million at the end of the 3 year repayment plan. N122million added to N643million will make it N765million for the purchase of 54 Operational vehicles. The question begging for answer is;

a) Even if the 54 operational vehicles were all captured in the Mid-Term Expenditure Framework(the planning tool), nothing stops the Ministry/NCAA from procuring the vehicles as captured in the MTE Framework for a period of 3 years. Why didn't the ministry approach the FEC to send a supplementary appropriation bill to the NASS for additional funds to be appropriated if the need for urgency arose? N122million would be fraudulently drained from public purse at the end of 36months repayment plan.


3. Waste: Buying 2 cars for N255million. The President in the 2012 budget requested for 2 bulletproof vehicles for himself and the Vice President at the cost of N280million, but had to jettison the idea due to public outcry. Why should a ministry engage in such waste? A ministry we are told is struggling to send its workers for overseas training? N122million cumulative interest is also a waste.


These allegations are enough for the Presidency to sack all those involved.

*Note; till date no one is able to verify if those armoured vehicles were procured because the agency have denied journalists, physical inspection of the vehicles. It is possible those cars were not procured, but paper work done in order to defraud Nigeria. There is also the new revelation from FAAN.

.