Tuesday, July 3, 2012

Multibillion Naira Scandal Rocks Ministry Of Defence



A multi-billion naira scandal is brewing in Nigeria’s Ministry of Defence over failure of the ministry to announce the winner of last year’s tender for the supply of 6 Mi-17SH Military helicopters.

The helicopters are meant to beef up military surveillance against the Boko Haram menace. So, instead of speeding up this process, the country is awash with cheap Algerian made bomb detectors which are grossly ineffective against Boko Haram’s bombs.
In December 2011, the Ministry of Defence invited eight companies to bid for the supply of six brand new Mi-17SH Military Helicopters.

However, seven months after the completion of the tender’s process, the ministry is yet to announce the winner. Many believe that the money for the purchase of the helicopters may have been looted. And the delay could have been lack of money in which officials hope to put in 2012 budget.

As the nation endlessly awaits the winner of the bid, Our Reporter conducted a research on the prices of the similar helicopter and found that Russia has sold to date about 12,000 of these helicopters and recently USA bought 21 units of the same type of helicopter in 2011 for $17,500,000 each.

Also India wants to buy 71 units of the same type of helicopter 2012 for a little over $17,000,000 each! It must be noted that these acquisitions are open government tenders by the relevant Ministry of Defence for each country exactly the same as the Nigerian case.

In the tender, our investigation revealed that only two companies out of the eight really have the capabilities to supply the helicopters based on their tract records in the business but the moves going on behind the scene suggest that these companies might lose the bid for a less competent one.

These proxy companies we gathered might be asked to inflate the price but a Russia company that wants to sell these Helicopters is not likely ready to sell a military product at a grossly inflated price in which the company considers a sale of a $17,500,000 helicopter for more than $20,000,000 as gross profiteering and could be tantamount to scandal.

For the fact that the winner of the tender has not been announced seven months after the completion of the tenders underscores lack of transparency and the fact that some powerful cabals have hijacked the process.

Our source expressed fear that just like a typical tender process in Nigeria, powerful cabals would eventually use a proxy company to win the bid, a scandalous move that some military experts believe could erode the image of the country’s military.

“Before the harm is done by these cabals in the purchase of these helicopters, it is important to inform the public on the moves to undermine the purchase of the six new Mi-17SH Military Helicopters.” our source explained.

Our source also said an excuse of lack of money to buy the helicopters could not hold waters because the fund is donated by the United Nations to support the country's efforts to combat terrorism and other security challenges. The question now is where is this fund? And what is delaying announcement of a tender conducted over seven months ago.?

The following companies tender bid for the purchase of the helicopter. Joint Aviation Services Ltd, Euro,159,765,930; Solicom ltd, N24,822,952,000; Global Intact & Sons Ltd, N23,893,542,777; Verbetyn Nigeria ltd, N22,553,475,000; Motyn Nigeria ltd, 18,143,9280,000; Asset Management Corp Ltd. N17,670,000,000; Dalhatu Construction Ltd, N11,280,000,000 and GNY Management & Consulting US$13,594,000.
Source: African Examiner

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