Minister of Aviation Stella Oduah has responded to President Jonathan's
query to her to explain her role in the purchase of the controversial
N225million BMW armored cars. See her response below
Executive summary on the procurement of NCAA operational vehicles
“The Nigerian Civil Aviation Authority,
NCAA, is the statutory regulator of the Nigeria Civil Aviation
Industry.
Consequently,
the NCAA is charged with oversight responsibilities over all civil
aviation operations in the country, including safety, security and
strict compliance with ICAO Standards and Recommended Practices, SARPs,
and Nigerian Civil Aviation Regulations, NCARs.
2. Towards the
effective implementation of its statutory regulatory responsibilities,
therefore, it is imperative that the NCAA is fully equipped with highly
specialised tools and facilities, including adequate operational
vehicles to cover all 22 national airports and over 400 airstrips. In
keeping with standard practice, provision is therefore made annually for
the replacement of obsolete, inadequate & unreliable monitoring
equipment.
3.In the 2013 budgetary appropriation, provision was
made for the procurement of specialised equipment (including operational
vehicles) to complement and in some cases replace obsolete ones.
Furthermore,
the fact that NCAA, as the regulator of the industry, often plays host
to dignitaries from ICAO, IATA, US FAA, AFRAA, AFCAC BAGASO, CANSO, ACI
and a host of others makes it necessary to have specialised operational
vehicles.
4.With regard to the procurement of additional
operational vehicles (including BMW Security Vehicles), the following
due process was observed:
(I) By letter dated April 15, 2013, NCAA
officially requested authorisation from the Federal Ministry of
Aviation to procure 56 operational vehicles through lease financing.
This option was proposed to the ministry to enable the NCAA make 36
monthly payments based on receipts from Internally Generated Revenue,
IGR.
The Ministry therefore granted due approval.
(ii)Based
on the ministry’s approval, the NCAA invited Expressions of Interest
from all Banks in Nigeria for the financing of the said vehicles. EOI
was adopted because the procurement is two sided. First, the financier
would have to be selected before the supplier is determined. This is in
line with procurement best practices.
(iii) On May 24, 2013, the
response received from the various banks to the Expression of Interest,
EOI, request was opened publicly and minutes of the opening exercise was
duly documented. During the EOI opening exercise, NCAA got commendation
from one of the Civil Society Organisations, CSOs, approved by BPP who
were invited for the opening exercise.
(iv) The evaluation of the
expression of interests was held on May 31, 2013 during which First
Bank Plc, Union Bank Plc and Stanbic IBTC emerged most responsive. On
the June 10, 2013 the above three banks were invited to submit Financial
Proposals. Thereafter, First Bank emerged the highest rated responsive
bidder.
(v)Between June 20 and 25, 2013, invoices were received
from various accredited motor vehicle dealers during which only
Coscharis Motors Limited quoted for BMW Security Vehicles.
(vi)
On June 28, 2013, NCAA Parastatal Tenders Board approved the selection
of First Bank Ltd for the Lease Financing as well as Metropolitan Motor
Vehicles and Coscharis for the supply of the vehicles. All necessary
approvals were duly sought and obtained accordingly.
(vii)
Between July 8, 2013 to August, 12, 2013 various meetings were held
with First Bank Ltd, contract agreement was signed and necessary
documentation executed.
Your Excellency is respectfully invited to note:
(i)
The crucial statutory role of the NCAA in regulating civil aviation
operations in the country, including safety, security and strict
compliance with ICAO Standards and Recommended Practices (SARPs) and
Nigerian Civil Aviation Regulations (NCARs).
(ii) The need for
NCAA to be fully equipped with highly specialized tools and facilities
(including operational vehicles) to enable the effective implementation
of its statutory functions.
(iii) The procurement of specialized
operational vehicles is duly provided for in the NCAA 2p 13 (IGR) Budget
and the need for adopting instalmental lease payments over36rionths.
(iii) That Due Process was followed in the procurement of the said operational vehicles.
Please your Excellency my continued loyally and esteemed regards.
Princess Stella Adaeze Oduah, OON, Honourable Minister.