N255m bulletproof car scandal: First Bank faces Reps panel today

First Bank of Nigeria PLC will on Wednesday (today) appear before members of the House of Representatives Committee on Aviation which is investigating the purchase of two  BMW bulletproof  cars for Minister of Aviation, Mrs. Stella Oduah,  by the Nigerian Civil  Aviation Authority at N255m.

THE RAINBOW can authoritatively report that the has been summoned by the committee to furnish it with the details about the controversial cars, which purchase was financed by the bank under a lease agreement.

Some experts who spoke to our correspondent alluded to the culpability of the bank in funding such contract which even in the face value appeared inflated. They argued that while setting the prices of products under lease finance was incumbent on the buyer and seller, it is also important that the financier of such contracts ensured that they passed integrity test.

However, First Bank of Nigeria, through Babatunde Lasaki, of Corporate Communications depart of the bank, insisted in a telephone chat with our newspaper that the bank did not breach any law or fail in any regulatory or ethical obligations.

Lasaki said the bank took all necessary measures required of it as a bank and that it hoped to discharge whatever doubts anybody had by the time they finished their presentation before the House committee Wednesday (today).

The committee will be hearing the bank's own side of the story alongside the aviation minister, who  is also to appear before the committee on Wednesday.

The minister was summoned   by the committee to appear before it on Tuesday, but she wrote,  explaining that she had travelled to Israel to sign the Bilateral Air Service Agreement between Nigeria  and Israel.

On Monday, the committee headed by Mrs.  Nkeiruka Onyejeocha, said Oduah would  now appear on Wednesday and not  Tuesday as ealier scheduled.

A general manger in one of the banks with huge competence in investment banking told our correspondent that First Bank did not err in financing the car, which prices were fixed by the buyer and seller, especially for such a product like a customized bullet proof car which actual price might beyond the competence of the bank's staff to determine.

He, however, added that banks which finance public sector projects or purchases are expected to got extra mile to ensure that the what it is financing met all necessary approvals.

According to him, the bank in such circumstance should rely on what the ministry or parastatal has said, but should carry independent investigations of its own to ensure that all the bodies that were required to approve endorsed the contract.

The Managing Director of Crane Securities, Mr. Mike Eze, was on the same page with the general manager.

For, it is important that banks and other companies as well that do business in our fouled environment, especially with regard to government institutions, should be careful by ensuring that they do not got into deals that would call their integrity to question.

In his on reaction, Dr. Austen Nweze of Lagos Business School said that the issue was beyond First Bank and even aviation minister.

He said that anybody conversant with government contract and procurement processes should be aware that values of such contracts and products are usually inflated to incorporate so many interests.

He said that banks that indulge in build the risks inherent in them into the mark up to ensure that whichever it goes it would not lose. He said that the bullet proof car prices are not the most outrageous prices out there in public records.

In his view, there should a wholistic approach in finding solutions to ensure that the loopholes being exploited by public officials to steal are properly plugged.

Lasaki, while replying to some of the issues raised by financial experts and public affairs analysts, said that contrary to impressions being created in the media that bank did not just fiancé the two bulletproof cars, but 54 cars.

According to him, the two bulletproof cars were part of the 54 cars which they financed and that it has in its possession all the required documents indicating back up approval for the cars.

He said that the NCAA obtained an approval to spend N240 million in this year's budget and that the authority made it clear that the impact of the transaction on the NCAA budget for cars should be limited to that amount.

He said that the overall purchases of vehicles which prices summed up at over N600 million is to me amortised over three years as clearly spelt in the agreement.

As of  10pm on Tuesday, it was unclear if Oduah, who was on Monday accused by  the  House Committee on Public Procurement of shunning similar invitations 12 times, had returned from Israel.

As part of its preparations for the hearing,  a five-member sub-committee of the Onyejeocha-led Aviation panel  on Tuesday discreetly inspected the controversial bulletproof  cars at   the Nnamdi Azikiwe International Airport, Abuja.

A source close to the committee was quoted as saying that the visit was to 'truly establish that the cars were bought.'

According to the source, 'This is an investigation and you do not leave anything to chance.

'The idea of the inspection team was to go to the location and physically see the cars.

'All these will form part of the final report to the House.'

When   contacted, Onyejeocha    confirmed that a team visited the airport to inspect the cars.

She, however, parried questions on the details of what the team saw.

The committee chairman  said, 'Yes, it is true that we set up a committee to go and inspect the cars.

'The committee went to the airport but they have not reported back to us.

'If you are interested, come to the hearing tomorrow, please, PUNCH.'

A senior official of the NCAA, who accompanied the sub-committee to the airport  said the lawmakers 'saw the two bulletproof cars .'

The source added, 'They   were satisfied. Some of them even stated that people were beginning to insinuate that  there were no cars. So, I think people can now ask the House members whether there are cars or not.'

The House spokesman, Zakari Mohammed, said sanctions that could be imposed on Oduah if she failed to appear before the Aviation committee included issuing a bench warrant to facilitate her arrest.

He said, 'What the committee will do is to apply to the Speaker (Mr. Aminu Tambuwal) for a bench warrant to be issued for her arrest.

'Once that is done and the speaker approves it, the Inspector-General of Police will be directed to arrest her and bring her before the committee.'