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.
Below are details of the transaction.
In 2012, the President and the Vice President spent N280 million on four bulletproof vehicles for the presidential fleet. 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 interest 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.
According to the breakdown of the 2012 budget, what the Presidency was authorised to spend under “replacement of aged vehicles of the presidential ground fleet (PGF)” was N280 million in 2012 for the acquision of four bulletproof vehicles for the president and the vice president.
The budget proposed for the “procurement of treated (bulletproof) Mercedes Benz saloon 600 E Guard for use by the President and Vice President @ N140,000,000 each.”
That year, the Presidency spent N356,724,300 to replace aged vehicles belonging to the presidential ground fleet.
The Presidency acquired “five Mercedes Benz saloon 350 (semi plain/partial bullet proof) at N25,000,000 each, 10 jeeps (assorted – Range Rover, Prado and Land Cruiser) at N10,000,000 each and procurement of accessories and maintenance equipment for guard vehicles at N25,000,000.”
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. Click to signup for FREE news updates, latest information and hottest gists everyday
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We thank you for the above explanations so it meant that N255m was not paid cash for the 2 BMW cars and that the ministry used N139m out of N240m that was budgeted for the Ministry`s vehicles in 2013 budget . If this information is in order it means that some Nigerians are seriously sick .
ReplyDeleteThe truth has now come to limelight!!!
ReplyDeleteCan you fault that arrangement??. Our biased agitators do not look before they leap..... sorryyy
Who is deceive who?the information is baseless.we need facts,however is she going with the cars where is kayode fani's own did he not used any?all our leaders should stop mismanaged our resources.is she taking it to heaven to visit God?
ReplyDelete