PRESIDENT BUHARI ORDERS EFCC TO INVESTIGATE FORMER CHIEF OF DEFENCE STAFF, CHIEFS OF AIR STAFF, OTHERS OVER CORRUPTION IN MILITARY PROCUREMENTS

On the recommendation of the committee
established to audit the procurement of arms
and equipment in the Armed Forces and
Defence sector from 2007 to 2015, President
Muhammadu Buhari has directed the
Economic and Financial Crimes Commission
(EFCC) to carry out further investigation into
the misconduct established against the
following retired and serving officers of the
Nigerian Air Force and Nigerian Army:
(1)Air Chief Marshal AS Badeh (Rtd)
(2)Air Marshal MD Umar (Rtd)
(3)Air Marshal AN Amosu (Rtd)
(4) Maj-Gen. ER Chioba (Rtd)
(5)AVM IA Balogun (Rtd)
(6)AVM AG Tsakr (Rtd)
(7)AVM AG Idowu (Rtd)
(8)AVM AM Mamu
(9)AVM OT Oguntoyinbo
(10)AVM T Omenyi
(11)AVM JB Adigun
(12)AVM RA Ojuawo
(13)AVM JA Kayode-Beckley
(12)Air Cdre SA Yushau (Rtd)
(13)Air Cdre AO Ogunjobi
(14)Air Cdre GMD Gwani
(15)Air Cdre SO Makinde
(16)Air Cdre AY Lassa
(16)Col N Ashinze
(17)Lt Col. MS Dasuki (Rtd)
Following the submission of the audit
committee’s second interim report, President
Buhari has directed the EFCC to investigate
the roles of the officers and the following
companies and their directors in fundamental
breaches associated with the procurements by
the Office of the National Security Adviser
(ONSA) and the Nigerian Air Force (NAF).
(1)Messrs Societe D’ Equipments
Internationaux
(2) Himma Aboubakar
(3)Aeronautical Engineering and Technical
Services Limited
(4)Messrs Syrius Technologies
(5) Dr Theresa A. Ittu
(6)Sky Experts Nig Ltd
(7)Omenyi Ifeanyi Tony
(8)Huzee Nig Ltd
(9)GAT Techno Dynamics Ltd
(10) Gbujie Peter Obie
(11) Onuri Samuel Ugochukwu
(12)Spacewebs Interservices Ltd
(13)Oguntoyinbo Tayo
(14) Oguntoyinbo Funmi.
(15) Delfina Oil and Gas Ltd
(16)Chief Jacobs Bola
(17)Mono Marine Corporation Nig Ltd
(18)Geonel Intergrated Services Ltd
(20)Sachi Felicia
(20) Mudaki Polycarp
(21)Wolfgang Reinl.
The breaches identified by the Audit
Committee include non-specification of
procurement costs, absence of contract
agreements, award of contracts beyond
authorised thresholds, transfer of public funds
for unidentified purposes and general non-
adherence to provisions of the Public
Procurement Act.
Furthermore, the procurement processes were
arbitrarily carried out and generally
characterized by irregularities and fraud. In
many cases, the procured items failed to meet
the purposes they were procured for, especially
the counter insurgency efforts in the North
East.
A major procurement activity undertaken by
ONSA for NAF was that concerning the
contracts awarded to Societe D’ Equipment
Internationaux (SEI) Nig Ltd.
Between January 2014 and February 2015,
NAF awarded 10 contracts totalling Nine
Hundred and Thirty Million, Five Hundred
Thousand, Six Hundred and Ninety US Dollars
($930,500,690.00) to SEI Nig Ltd.
Letters of award and End User Certificates for
all the contracts issued by NAF and ONSA
respectively did not reflect the contract sums.
Rather, these were only found in the vendor’s
invoices, all dated 19 March 2015.
Additionally, some of the award letters
contained misleading delivery dates
suggesting fraudulent intent in the award
process. The observed discrepancies are in
clear contravention of extant procurement
regulations.
The SEI contracts included procurement of two
used Mi-24V Helicopters instead of the
recommended Mi-35M series at the cost of
One Hundred and Thirty Six Million, Nine
Hundred and Forty Four Thousand US Dollars
($136,944,000.00).
However, it was confirmed that the helicopters
were excessively priced and not operationally
air worthy at the time of delivery. A brand new
unit of such helicopters goes for about Thirty
Million US Dollars ($30m). Furthermore, the
helicopters were delivered without rotor blades
and upgrade accessories.
Additionally, the helicopters were undergoing
upgrade while being deployed for operation in
the North East without proper documentation.
It was further established that as at date, only
one of the helicopters is in service while the
other crashed and claimed the lives of two
NAF personnel.
The Committee established that ONSA also
funded the procurement of 4 used Alpha-Jets
for the NAF at the cost of Seven Million, One
Hundred and Eighty Thousand US Dollars ($
7,180,000.00). However, it was confirmed that
only 2 of the Alpha-Jet aircraft were ferried to
Nigeria after cannibalization of engines from
NAF fleet.
This is contrary to the written assertion of the
former Chief of Air Staff, Air Marshal AN
Amosu to the former NSA that all the 4
procured Alpha-Jets aircraft were delivered to
the NAF.
The non-militarisation of the Alpha-Jets made
them unsuitable for deployment to the North
East and they are currently deployed only for
training at NAF Kainji.
Furthermore, the procurement of the Alpha-
Jets was contrary to the recommendation of
the assessment team. The Committee found
that the conduct of Air Marshal Amosu was
deliberately misleading and unpatriotic.
The contract for the procurement of 36D6 Low
Level Air Defence Radar for the NAF was
awarded to GAT Techno Dynamics Ltd in April
2014 at the cost of Thirty Three Million US
Dollars ($33m) and was funded by ONSA.
The Committee established that the radars
were excessively priced as a complete set of
such radars (comprising 6 radars including
the Control Centre) goes for Six Million US
Dollars ($6m) averagely. The Committee
observed that the radars were delivered
without the vital component of Identification
Friend or Foe (IFF) that distinguishes between
own and adversary aircraft, which has
significantly degraded the operational
capabilities of the NAF in the North East.
It was further observed that the sum of Three
Million, Three Hundred Thousand US Dollars
($3.3m) was fraudulently included in the
contract agreement as VAT and With Holding
Tax and subsequently paid into the bank
accounts of Spacewebs Interservices Ltd and
Delfina Oil and Gas Ltd.
The Committee further established that Two
Million US Dollars ($2m) from the proceeds
was transferred to Mono Marine Corporation
Nig Ltd, which is jointly owned by principal
characters in this deal. The Committee opined
that the infractions of extant regulations by
these companies were clearly intended to
defraud.
It was established that between September
2009 and May 2015, the NAF expended about
Fifteen Billion Naira (N15bn) on the
maintenance of its Alpha-Jets, C-130H
aircraft and Mi-24V/35P helicopters. Out of
this amount, Four Billion, Four Hundred and
Two Million, Six Hundred and Eighty Seven
Thousand, Five Hundred and Sixty Nine Naira,
Forty One Kobo (N4,402,687,569.41) was paid
out for contracts not executed.
It was also observed that in carrying out these
maintenance activities, contracts worth over
Two Billion, Five Hundred Million Naira
(N2.5bn) were awarded to Syrius
Technologies, a Ukrainian company that was
not registered in Nigeria. Regrettably, in spite
of these expenditures, the status of NAF fleet
remained operationally appalling as only 3
Alpha-Jets, 2 C-130H and one each of
Mi-24V and Mi-35P were serviceable as at 28
May 15.
In October 2013, NAF awarded contracts to
DICON for the supply of weapons and
ammunition at the cost of Five Hundred and
Ninety Nine Million, One Hundred and Eighteen
Thousand Naira (N599,118,000.00). However,
only 2 of the 7 items contracted were delivered
to NAF while the outstanding 5 items
remained undelivered despite repeated
requests to DICON.
The Committee also found that the delivered
ammunition were about 40 years old, thereby
casting doubts on their shelf life. The failure of
DICON to fully execute the contract and the
delivery of aged ammunition diminished the
capacity of the NAF in North East operation.
The Committe uncovered insider dealings by
military officers in procurement activities
undertaken by ONSA and the NAF. The officers
were found to have misused or abused their
offices for personal gains by influencing award
of contracts to private companies in which
they have substantial interests.
For instance, an officer serving in the ONSA
used his office to secure 2 contracts for his
company, Geonel Integrated Services Ltd, for
the protection of 20 Dams and Presidential Air
Fleet security at the cost of Six Billion, Two
Hundred and Fifty Million Naira
(N6,250,000,000.00) and Five Million US
Dollars ($5m) respectively.
Furthermore, some NAF officers used their
companies to collect VAT and With Holding
Tax that were never remitted to FIRS while
another officer was found to have cross
transferred about Five Hundred Million Naira
(N500m) between a NAF company,
Aeronautical Engineering and Technical
Services Limited, SkyExperts Nig Ltd and
Huzee Nig Ltd, companies in which he had
personal interests.
It would be recalled that in its First Interim
Report, the Committee on Audit of Defence
Equipment established that the sum of Six
Hundred and Forty Three Billion Naira
(N643bn) and Two Billion, One Hundred
Million US Dollars ($2.1bn) interventions were
received for defence procurements by DHQ and
the Services between 2007 and 2015.
In continuation of its assignment, the
Committee has so far established that the
nation spent about Twenty Nine Billion Naira
(N29bn) and Two Billion US Dollars ($2bn) on
NAF procurement activities alone.

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