THE TRUE POSITION ABOUT RECENT ALLEGATIONS OF CORRUPTION IN THE HOUSE OF REPRESENTATIVES.

by Kayode Odunaro

KEYAMO’S ALLEGATION ON 407 CARS.

Keyamo’s allegation of a fraud of N539 million which he wants to pin on Rt. Hon. D. Bankole, was arrived at through:

(i)    Differentials in the price of the model of the car purchased;

(ii)  Double payment of VAT and

(iii) No discount for the purchase.

Even from Keyamo’s documents whose authenticity is in doubt as some are now certified forged or falsified following PAN and NASS Management testimonies to the Ethics and Privileges Committee, the following lies/misinformation are to be noted.

(1)                        In keyamo’s Annex 1 which is the resolution of the Executive session of the House of Representatives on December 12, 2007, the whole members of the House took the decision to buy the cars. It was not the decision of Bankole or the Leadership of the House.

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(2)                        Annex 2 of Keyamo’s document shows the speaker directing the processing of the purchase of the car BY MANAGEMENT directly from PAN, the sole manufacturer of Peugeot. In other words, the purchase was done by the Management of the National Assembly and not Bankole and the Leadership.

(3)                        Keyamo’s purported price differential from the cost of the cars as N6.1 million instead of N5.1 million was based on a fake price list of PAN in 2006. PAN has as since came out with a price list that contradicts the one paraded by Keyamo. Indeed, the agreement between the management of the National Assembly and PAN to purchase the car from Keyamo’s Annex 5 and 6 was signed in January 2008 on PAN 2007 price list.

(4)                        From PAN’s explanations to EFCC and at the Ethics Hearing, the model it branded “Comfort” was not in Nigeria in 2006. It was only introduced by PAN “based on order we received in 2007”. It has all the features of Peugeot 407 ST SPORT AUTO agreed upon at the prevailing price of N6, 168,750 excluding PDI and delivery charges contrary to Keyamo’s ‘forged’ price of N5, 100, 000.

(5)                        Still on the model, what the House approved was Peugeot 407 Sport Automatic. In all the agreements as per Keyamo’s annex 4, 5 and 6 dealing with the purchase, no where was the word ‘Comfort’ mentioned and PAN has stated that the name is just a branding/marketing tool for what was in Annex 4, 5 and 6 namely 407 ST SPORT AUTOMATIC with main features stated for 2.0 engine capacity.

(6)                        No where were leather seats, automatic folding side mirrors, stated as features in PAN’s presentation as per Keyamo’s letter.

(7)                        On the issue of double payment of VAT, Keyamo conveniently lied even from his own documents (Annex 7, 8, 9 and 10) which are all Capital Expenditure Payment Vouchers. In all the documents, Zero % was recorded for VAT. When the issue was pointed out to Keyamo at the Ethics Committee hearing, he barefacedly said that VAT and normal Withholding Tax paid is VAT. He was educated that there are separate Acts governing VAT and Sale Tax. PAN has now testified that it paid VAT to FIRS

(8)                        The issue of lack of competitive bidding does not arise following the directive to the buy directly from PAN to avoid middlemen. PAN as sole assembler of Peugeot in Nigeria cannot compete with dealers under them.

(9)                        PAN also lay to rest the issue of discount as it stated in its explanation that it did not give any as requested by NASS Management “in view of the urgency of the order which necessitated an “off factory production” and special shipping terms”. From Keyamo’s document, this was a contract for 380 cars sealed in the last week of January 2008 with PAN promising delivery in a month’s time. Car in such large quantities are not manufactured overnight and the ‘express’ nature will definitely affect the discretionary issue of discount. PAN has testified that it needs a minimum of 5months for such an order. And of course, since NASS was buying directly from PAN, they were getting the lowest price without markup which is the practice among dealers that now give discretionary discount as a marketing strategy.

Keyamo in his deposition also quoted Zenith Bank cheque’s number as the instrument of payment. When asked if he has copies of the cheques he is quoting for its numbers for it to be admitted as evidence, he replied in the negative. What he did not know or refused to in view of other considerations was that the payment in question was actually paid with CBN cheques, it being a Capital Expenditure. The NASS Management has even stated that its banker since 1999 is UBA and not Zenith Bank.

 From the stated proofs of Keyamo working towards an agenda to link Bankole to an alleged corruption using all falsehood and playing to the gallery, it is clear that he has yet again deceived Nigeria as his past is replete with such deception. But Nigerians are not fools. Why is Keyamo raising these patently false and distracting allegations at this point shortly after the Committees reconstitution in the House and when the all important Report of Power Investigation is about to be investigated? What did Keyamo go to Abeokuta to do during the week preceding his letter of October 19, 2008? Who did he meet that handed over the forged documents to him?

The answers will soon be public knowledge and Keyamo’s clients revealed. For now Nigeria should discard these distractions which Bankole has repeatedly warm will come based on his reformist agenda. Predictably, as this particular edifice of lies is collapsing on its author, they went berserk in stealing National Assembly documents relating to Purchases for various offices of officers and members of the House as contained in the Budget of the National Assembly. It is indeed sad that Capital Expenditure for Offices of principal officers of the House like Convoy Vehicles are being made to look as crimes. It is all part of the distraction to destabilize the House as a platform to remove and possibly eliminate Speaker Bankole.  It will surely fail.

CONVOY VEHICLES FOR SPEAKER AND OTHER ISSUES.

The media on Sunday November 2, 2008 was awash with stories of some contracts entered into by the National Assembly on the purchase of Convoy Vehicles for Mr. Speaker and other principal officers of the House of Representatives. This and other purchases of office equipment were targeted at destabilizing the House and portraying it as imprudent in its financial dealings. It is now pertinent to state clearly the true position of things and put detractors to shame.. Coming on the heals of the failing plot of alleged corruption in the N2.3 billion 407 car purchase for committee work, it is yet another attempt to cast aspersion on the work of the House with a view to its destabilise it and prevent it from going on with its legislative agenda in the area of oversights of the Power Sector, Energy/ NNPC and Finance Sector.

The question every one should ask at this point is: is there anything wrong with the purchase of the Convoy vehicles?

1.    First let us say that no law was breached in the purchase of the Convoy Vehicles. Indeed, it was done in fulfillment of the law. According to the Revenue Mobilisation and Fiscal Commission Act and certain Political Public and Judicial Office Holders Act, the President, Vice President, Senate President, Deputy Senate President, Speaker and Deputy Speaker are to be provided with stipulated number of vehicles in their convoy.

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2.    The number for the Principal Officers of the National Assembly (Senate President and Speaker) is 8 (Eight) by RMFC Act which state clearly that this provision is due to the “ demand of their respective offices and the sensitive nature of the officials functions they perform”

3.    The vehicles that have been ordered purchase was equally provided for in the 2008 Appropriation Act in the Capital Budget of National Assembly under  “Purchase of Vehicles for Presiding Officers”.  So the purchase is legal and legitimately appropriated for in the Budget.  It must be stated that the vehicles in the convoy are not personal vehicles of the officers but government property for any occupier of the office.

4.    This lead to an inquiry into the justifiability of the purchase.  From the time the Speaker assume office last year in November, till July when the vehicles were eventually approved to be ordered, three security memos were written by security officials attached to the Speaker to the relevant authorities of their inability to effectively protect Nigeria’s Number 4 citizen due to lack of equipment, vehicles and his residency in his 3-bedroom personal residence instead of official quarters.

5.    While the Speaker and his Deputy continue to resist approval to purchase these government vehicles at the risk of their lives, all kind of ad-hoc arrangements were in place.  As noted in one security memo, private vehicles of officers are often hijacked for official duty.   The Speaker of the Federal Republic of Nigeria also resort to hiring or getting vehicles from friends or state government to complement what by law should have been provided whenever he is in Lagos or Ogun on official assignment.

6.    The staff car of both Speaker and his Deputy also breakdown frequently.  For the Speaker, the staff car is usually quickly taken to the State House Mechanic Workshop for repairs whenever the Speaker is in Chambers sitting while the Deputy have been embarrassed on at least twice on his way to Gombe when his staff car broke down and had to be towed back to Abuja!

7.    After such embarrassment and inconveniences with its attendant security implications, for Number 4 citizen, approval was given in July for the purchase of full complement of Convoy Vehicles as contained in the 2008 Budget.  However even now, the vehicles ordered are yet to be delivered due to strict adherence to Public Procurement Act and the Speaker and his Deputy are still using vehicles un-dignifying to the offices and at great security risk.

8.    Given that these vehicles purchase was legitimate and necessary, were they procure at prudent cost? For a leadership that rose on the basis of accountability, it is always conscious of cost.  For instance, the case of Mercedes Benz S.600 vehicle (Bulletproof) was ordered at N52.8 million because it was directly from the manufacturer.  The prevailing price of the same model in Nigeria from quotations submitted is between N82-N105 million.  This is saving for the nation in the range of N25-N50million.

Finally, VP, Senate President and all state governors use similar and even more expensive convoys. Why is Bankole being singled out for what is legal and legitimate.