Date Published: 07/27/11

Former SGF, Yayale Ahmed, former Defense Minister, Kayode, in N20 Billion Contract Scam …Use Proxy Companies to Fleece the Ministry Of Defense of Billions

Mr. Yayale Ahmed, Former SGF

Mr. Adetokunboh Kayode, former Defense Minister

Former Secretary to the Government Mr. Yayale Ahmed and former Defense minister, Adetokunboh Kayode (SAN) imported refurbished Offshore Patrol Vehicle for the Nigeria Army for a highly inflated cost of €93 Million (93 million Euros) about N20 Billion, and a Shaldaq MK II patrol craft for N4 Billion, investigation by Pointblanknews.com has revealed.

The same OPV cost the Trinidad and Tobago Government N4.4 Billion about $29 Million in 2010, according to a document obtained by Pointblanknews.com. The cost of purchasing a new OPV is estimated at about $120 Million.

Yayale and Adetokunboh’s Doiyatec imported the OPV and Shaldaq MK II Patrol Craft from Bulgaria in 2010.

The duo has business links with former chief of Army Staff, Gen. Abdulrahman Dambazzau, and present Chief of Defense Staff (CDS), Air Marshal Oluseyi Pentirin and together, they have sufficiently dubbed the Defense Ministry of several Billions of public funds

Checks also reveal that in recent years, these influential men decide which companies or firms execute juicy defense contracts worth billions. Their companies that have monopolized defense contracts are Doiyatec Nigeria Limited, TP Marine Global Services Limited, and Suncraft Nig Ltd. 

Kayode and Ahmed have substantial interests in Doiyatec, One Amir Shade, a German/Israeli holds forth for Ahmed and Kayode as CEO of TP Marine Global Services Limited.

Sources at the Defense ministry hinted that even while out of office; Kayode and Ahmed used their influence in June 2011, to ensure the Nigeria Navy was arm twisted into partnership with their own TP Marine Global Services.

The partnership, sources allege, did not go through due process, as only TP Marine Services bided, and the deal was closed without the signature of a substantive Minister. The deal which has the blessing of the Chief of Defense Staff, CDS, Pentirin, was tidied up over two weeks after Kayode left office.

According to the partnership details, TP Marine Services would build a shipyard for shipbuilding, maintenance, repairs of vessels and boats in their fleet, with the Navy providing the land.

Aside from this multiple billion naira partnership deal, Pointblanknews.com learnt, TP Marine Services has already landed a N3 Billion contract for service and maintenance and another N3 Billion for the supply of three naval boats.

It would be recalled that In September 2010, Kayode recommended Doiyatec for the maintenance of six Navy boats and paid in full, but as at July 2011 only two boats have been fixed, as the rest have been abandoned.

When Ahmed was Defense minister, same Doiyatec was chosen by him to supply three Naval boats at N4 billion each. Pointblanknews.com however learnt that when the deal got to the Bureau for Public Procurement (BPP), it stalled. The BPP insisted the deal was not worth more than N1 Billion each boat.

Curiously, investigations reveal, when Doiyatec's proposal was rejected, Ahmed sent in the proposal of TP Marine Services for the supply at a lower cost. This time, TP Marine Services said it would supply each boat for N900 million each. At the end, the three boats cost the ministry N2.7 Billion

Kayode had been hitherto fingered in several shady deals involving rogue supply contracts for military hardware.

The then Chief of Army Staff, Dambazzau, had in a letter dated June 30, 2010 addressed to the Minister of Defence, Adetokunbo Kayode, requested funds for the purchase of “Nigerian Army Urgent Requirements”.

The letter signed by Major General A. A. Atofarati, on behalf of the Chief of Army Staff, sought the release of the sum of N220,892,453,475.55 (N220 Billion), for the purchase of 19 items including

"Ammunition of Various Types" valued at N16,440,262,200.00;( N440 Million), y Arms (GPMG and BMG) at the cost of N8,680,000,000.00.( N 8.6 Billion)

Other items include armored personnel carriers (COBRA) at the cost of N97,379,970,625.00; Armored Fighting Vehicles (AFV) at the cost of N6,665,000,000.00 among others.