N225m car scandal: Stella Oduah tells her own side of the story

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 over 36 months.
(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.