Arms Procurement Report Shows Massive Irregularities

According to a panel instituted by President Muhammadu Buhari there has been serious irregularities in the procurement within the defense sector and former heads are to answer for missing funds running into hundreds of billions.

The 13-man investigative committee was set up on August 31 by the Office of the National Security Adviser to audit the procurement of arms and equipment in the Armed Forces and Defence sector from 2007 to date.

Below are excerpts from details shared by Femi Adesina, Special Adviser to the President (Media & Publicity).

The committee has analyzed interventions from some organizations that provided funds to the Office of the National Security Adviser, and all military headquarters, both in local and foreign currencies.

So far, the total extra budgetary interventions articulated by the committee is Six Hundred and Forty Three Billion, Eight Hundred and Seventeen Million, Nine Hundred and Fifty Thousand, Eight Hundred and Eighty Five Hundred Naira and Eighteen Kobo (N643,817,955,885.18).

The foreign currency component is to the tune of Two Billion, One Hundred and Ninety Three Million, Eight Hundred and Fifteen Thousand US Dollars and Eighty Three Cents ($2,193,815,000.83).

These amounts exclude grants from the State Governments and funds collected by the DSS and Police. It was observed that in spite of this huge financial intervention, very little was expended to support defense procurement.

The committee also observed that of 513 contracts awarded at $8,356,525,184.32; N2,189,265,724,404.55 and €54,000.00; Fifty Three (53) were failed contracts amounting to $2,378,939,066.27 and N13,729,342,329.87 respectively.

The committee also discovered that payments to the tune of Three Billion, Eight Hundred and Fifty Million Naira (N3,850,000,000.00) were made to a single company by the former NSA without documented evidence of contractual agreements or fulfilment of tax obligations to the FGN.

Further findings revealed that between March 2012 and March 2015, the erstwhile NSA, Lt Col MS Dasuki (rtd) awarded fictitious and phantom contracts to the tune of N2,219,188,609.50, $1,671,742,613.58 and €9,905,477.00. The contracts which were said to be for the purchase of 4 Alpha Jets, 12 helicopters, bombs and ammunition were not executed and the equipment were never supplied to the Nigerian Air Force, neither are they in its inventory.

Additionally, it was discovered that the former NSA directed the Central Bank of Nigeria to transfer the sum of $132,050,486.97 and €9,905,473.55 to the accounts of Societe D’equipmente Internationaux in West Africa, United Kingdom and United States of America for un-ascertained purposes, without any contract documents to explain the transactions.

President Muhammadu Buhari has directed that the relevant organizations arrest and bring to book, all individuals who have been found complicit in these illegal and fraudulent acts.