10 most damning revelations from the latest presidential arms audit report

An investigative panel set up by President
Muhammadu Buhari to audit procurement of arms
by and for the Nigerian military between 2007 until
he assumed office in 2015 submitted another interim
report on Thursday.
The Committee on Audit of Defence Equipment
Procurement in the Nigerian Armed Forces
completed the first of its piecemeal reports in
November 2015 in which a former National Security
Adviser, Sambo Dasuki, was indicted for allegedly
mismanaging over N13 billion budgeted for
procurement of arms.
Mr. Buhari ordered immediate arrest of Mr. Dasuki
as recommended by the 13-member committee and
he had since remained in detention amid disputes
about how he should be prosecuted.
In February 2016, the committee, which consists of
individuals pooled from mainly military or security
background, visited military facilities across the
country to carry out a physical examination of
military weaponry and equipment and verify if new
deliveries were taken, how they were purchased and
their quality.
The panel then found over a dozen former military
chiefs culpable in fraudulent arms deal within the
period under review.
A former Chief of Defence Staff, Alex Badeh, and
Adesola Amosu, a former Chief of Air Staff, were
subsequently indicted. They are facing trial in
various high courts.
The report submitted to President Buhari on
Thursday is third in the series, and it uncovered
how ex-political appointees, private individuals and
former military chiefs, including two erstwhile
Chiefs of Army Staff, were suspected culpable in
alleged fraudulent diversion of funds meant for
arms procurement.
Azubuike Ihejirika and Kenneth Minimah, who both
served under President Goodluck Jonathan, were
recommended for further investigation by the
committee.
Mr. Buhari was, however, criticised for allegedly
doctoring the outcome of the latest report.
Critics said the panel indicted a close ally of Mr.
Buhari and the current Minister of Interior,
Abdulrahman Dambazau, but that the administration
compelled the committee to have his name removed
before publishing the report.
The government denied the allegations.
As supporters and opponents argued over the impact
the alleged protection of Mr. Dambazau would have
on Buhari government’s much-avowed zero-
tolerance for corruption, PREMIUM TIMES looked at
the 10 biggest revelations from the latest arms panel
findings.
1) Receiving big to deliver little:
The committee, led by Jon Ode, a retired Air Vice
Marshal, found that, “3 contracts with a total value of
N5,940,000,000.00 were awarded to DYI Global
Services Ltd and Doiyatec Comms Nig Ltd (owned by
the same individuals) for the procurement of
military hardware including 20 units of K-38 Twin
Hull Boats and 6 units of 4 x 4 Ambulances fitted
with radios.
“The Committee found that the 2 companies collected
N5,103,500,000.00 representing 86% of the total value
of the 3 contracts worth N5,940,000,000.00, but only
performed to the tune of N2,992,183,705.31.”
2) Inconclusive delivery:
In another instance, 2 contracts were awarded to
Baram International Nigeria Limited, amounting to
N420,726,799.20 for the procurement of 53 Armoured
Vehicles Spare Parts at the cost of N169,916,849.77
and that of Ballistic Vests, Night Vision Binoculars
and 3 Unmanned Aerial Vehicles at the cost of
N250,809,949.50. Sadly, the contract worth
N169,916,849.77 with 90 days completion time is yet
to be completed 5 years after.
3) ‘International embarrassment’:
Similarly, between 29 April 2005 and 19 October
2010, the MOD (Ministry of Defence) awarded 2
contracts to Progress Limited for the supply of 42
units of BTR-3U Armoured Personnel Carriers and
spare parts for the Nigerian Army.
However, neither the MOD nor the NA could provide
the contract agreements to ascertain the cost of the
APCs. Although 26 of the APCs were delivered in
2007 and immediately deployed for Peace Keeping
Operations in Sudan, the APCs scandalously broke
down on induction.
The Committee observed that the APCs did not meet
the operational requirement for the Army, caused
Nigeria international embarrassment and deprived
her appropriate reimbursement from the United
Nations.
4) Circumventing due process:
With respect to contracts awarded directly by the
Nigerian Army, the Committee found that many of
the contracts were characterised by lack of due
process, breach of extant procurement regulations
and tainted by corrupt practices.
In this regard, a review of the procurement carried
out by Chok Ventures Ltd and Integrated Equipment
Services Ltd established that between March 2011
and December 2013, the two companies exclusively
procured various types of Toyota and Mitsubishi
vehicles worth over N3,000,000,000.00 for the
Nigerian Army without any competitive bidding.
Though the Committee found no credible evidence of
delivery of the vehicles, the vendors were fully paid
based on job completion certificate authenticated by
the then Chief of Logistics.
Also, analyses of the various banks accounts of the
two companies showed transfers to individuals
related to the then Chief of Army Staff.
5) A brave colonel paid the ultimate price for the
greed of his superiors:
Furthermore, the post- delivery Technical Inspection
Reports revealed that the APCs were unsuitable for
the North East operation. However, sequel to the
deployment of the APCs in the North East, one was
destroyed by RPG fire, killing a Colonel inside.
As at 13 May 2016, only one of the 10 Igirigi APCs
deployed to the North East was serviceable.
6) Double jeopardy for troops attached to
Operation Boyona:
It was also found out that following a request by the
ONSA on 13 May 2013, the Government released
N1,340,000,000.00 for OPERATION BOYONA, aimed at
dislodging terrorist camps along the borders with
Cameroun, Chad and Niger. In August 2013, ONSA
requested and got approval for additional
N2,000,000,000.00. However, DHQ (Defence
Headquarters) and the Services confirmed non-
receipt of any additional funds for Operation
BOYONA.
7) Fictitious firms as conduit for fraudulent
proceeds:
Similarly, in January 2015, the then Honourable
Minister of State Foreign Affairs (HMSFA II)
requested N7,000,000,000.00 to urgently fund the
operation of the Multi National Joint Task Force
(MNJTF) in the Lake Chad Basin which was approved
and released to ONSA.
However, the Committee could not ascertain the
utilization of the funds from ONSA, DHQ and the
Services. The returns made by ONSA to the
Committee showed that about N1,500,000,000.00 was
withdrawn in cash while several disbursements
were made to some companies that appeared not to
have any relationship with the MNJTF or any
operations against Boko Haram.
8) How dollars became orphaned:
The Committee observed that contracts awarded to
SEI and its two associated companies, APC Axial Ltd
and HK-Sawki Nig Ltd, fell short of established
norms. Between May 3, 2014 and March 2015, the
ONSA mandated CBN to release various sums
totalling $386,954,000.00 to SEI and the two
associated companies for ‘procurement of technical
equipment’, without tying the money to particular
items of procurement.
Thus, the allotment of the fund was left at the
discretion of the vendor without input or
consultation with ONSA or the Nigerian Army.
9) When NIMASA sub places with the CBN:
The Committee also noted that between September 3,
2014 and 30 April 30, 2015, NIMASA funded accounts
of the Joint Task Force Operation Pulo Shield with
various sums totalling N8,542,586,798.58 purportedly
to enhance operations of the Joint Task Force in the
Niger Delta.
Analyses of the accounts of the Joint Task Force
showed that transfers totalling N6,277,698,885.13
were made from the account. The then JTF
Commander could not justify these transfers but
confirmed that the sums were changed into dollars
and handed over to a private citizen. Additionally,
he could not account for the balance of
N2,264,887,914.45
10) Looting without limit:
Finally, going by the last flag raised by the
committee, it appeared there was no limit the
suspected looters couldn’t go, as even accrued tax
revenues were not remitted to the appropriate
authorities.
The Committee observed breaches of the laws and
regulations on payments of With-holding Tax (WHT)
and Value Added Tax (VAT). The unremitted WHT
from 2007 to 2015 amounted to about
N862,962,065.99, $2,093,710.06 and €2,700.00
respectively.
However, through the intervention of the
Committee, some companies remitted
N109,843,495.40 to FIRS. The Committee is of the
opinion that the Federal Inland Revenue Services
should liaise with the Nigerian Army to recover all
outstanding payments of WHT.