Airport Remodelling Debt Inflated By N26bn? Capt. Daniel Omale — July 5, 2014 According to one of the newspapers, the Federal Airports Authority of Nigeria said that the debt accrued from the remodelling of the airports across the country was inflated by N26bn. FAAN said that the actual debts for the remodelling stood at N148bn, against N174bn that was announced by the Senate Committee on Aviation. In 2011, the federal government embarked on the rehabilitation, expansion and restructuring of airport terminals, the building of 14 fresh cargo terminals, provision of equipment for the Accident Investigation Bureau and the Nigeria Meteorological Agency. FAAN said the projects were planned in three phases and it gave the contract value of the Phase 1 as N12.81bn. It added that the total amount already paid was N11.22bn, with an outstanding balance of N1.58bn. It also said that the contract value of the Phase 2 of the projects was N93.43bn, while the total amount disbursed to the contractors was N53.97bn, leaving a balance of the N39.50bn. According to a statement obtained on Tuesday, the third phase of the projects still at an infant stage has a contract value of N63.02bn, while the total amount already paid is N4.21bn, with an outstanding payment of N58.81bn. The statement said, “The sub-total of the debts therefore is N99.85bn, which when added to the debts already approved by the Federal Executive Council at N48.37bn brings the total outstanding debts to N148.23bn. This amount from FAAN differs from the N174bn that was declared by the Senate Committee on Aviation by about N26bn.” The statement added that the former aviation minister had, in collaboration with the Ministry of Finance, the Central Bank of Nigeria and the Senate and House committees on Aviation, made fiscal provisions for the funding of these projects which were later abandoned, “hence the accrual of the debts.” The foregoing shows how corrupt, deceptive and unrealistic politicians in government have become. First of all, the fact that the former minister of aviation, Stella Oduah, embarked on renovating 22 airports at the same time is fraudulent in every sense of the word. How can a rational person commit the Ministry of Aviation to such colossal expenditure at once? As of today, none of the airports is completed, but, still, the country has been submerged in a debt of N148 billion, even before the lawmakers added their share of N26billion. Even the N148 billion authenticated by FAAN, in my opinion, is equally inflated. There is no way that Nigeria will ever recover from scores of fraudulent activities in government. There is no country that is free of corrupt government officials, but the magnitude, latitude and impunity of how Nigerians loot the public treasury is what differs. A Nigerian is capable of stealing all available funds in government coffers if he or she has access or leeway to it. This is what makes it hard for the country to grow and prosper. There seems to be an underlining competition among top public servants in the country as to how much an individual can loot, without any form of retribution, in a given time; because, it has become obvious that, within a space of time, newly appointed government officials issue out unrealistic and fictitious contracts in the name of public service and rendering of the ever-elusive dividends of democracy, all in the name of acquisition of imaginary social status. Behind the façade is the absolute lust for vanity. The world is changing and governments all over are clamouring for free, private sector-driven market economy. Only four of Nigeria’s airports are viable enough to run on their own; the rest must receive subvention from government. It is unwise for this government or future governments to continuously embark on a senseless airport remodelling project, which has become a conduit pipe for thieves. As long as the development, renovation and operation of our airport terminal buildings remain with government, looting in the name of airport remodelling will continue. It’s time for private investors to take control of all but four of the major airports in the country. Also, the standing debt figure of N148 billion must be properly scrutinized. This is another fraud perpetrated by Oduah’s administration. The more we allow thieves in government, the more the country loses. We have been saying this all along: it is insane to invest huge, public funds into remodelling unviable airports at the same time, all in the name of finding avenue to loot the national treasury.
Posted on: Sun, 06 Jul 2014 04:16:18 +0000
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