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.
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.
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