Former Finance Minister Dr. Ngozi Okonjo-Iweala yesterday washed her hands of the controversy over the N19.5 billion aviation safety fund: she denied reports that she authorised a N6.5billion loan to finance the Safe Tower projects in four airports.

Ngozi Okonjo-Iweala

The controversial loan is one major focus of the Senate’s probe of the N19.5billion intervention fund released by the administration of former President Olusegun Obasanjo, when Mrs Okonjo-Iweala was Finance Minister.

Two former Aviation ministers – Chief Femi Fani-Kayode and Prof. Babalola Borishade – and former Nigeria Airspace Management Agency (NAMA) Managing Director Captain Rowland Iyayi, who are implicated in the controversial project, yesterday regained their freedom. They were released from custody of the Economic and Financial Crimes Commission (EFCC) after satisfying the bail conditions set by an Abuja Chief Magistrate’s Court.

But a former Deputy Governor of Osun State and another highly-placed Nigerian may soon face interrogation by the EFCC for allegedly converting two Sport Utility Vehicles meant for the N6.5billion project to private use.

Mrs Okonjo-Iweala, in a statement by her Media Adviser, Paul Nwabuiku, made available to our correspondents in Abuja yesterday, said she never aided the procurement of a N6.5billion bank loan; neither did she intervene in any other matters relating to loans as far as the aviation fund was concerned.

The former minister, now Managing Director of the World Bank, also said there was no basis to insinuate that she would have been arrested had she appeared before the Senate Committee on Aviation probing the use of the fund.

But she admitted being aware of the disbursement of N2billion for the payment of entitlements of workers of the Federal Aviation Authority of Nigeria (FAAN).

Part of the statement reads: "Dr Okonjo-Iweala had absolutely nothing to do with the process which led to getting the facility. As Minister of Finance, Dr Okonjo-Iweala carried out her statutory responsibilities without concerning herself with issues such as contracts and placement of funds. There was no basis for Dr Okonjo-Iweala to play any such role.

"Also untrue is the speculation that Dr Okonjo-Iweala would have been arrested if she had appeared before the committee. From the information available to the former minister, there is no reason for the committee to contemplate any such action.

"Dr Okonjo-Iweala had forwarded a letter to the committee which adequately explained the origins of the loan in the wake of the unfortunate plane crashes that happened two years ago.

"It is also important to note that, before she resigned from the Obasanjo government in August 2006, the only money spent out of the aviation fund was the N2billion which was used to pay the entitlements of disengaged workers of the Federal Aviation Authority of Nigeria.

"It is becoming increasingly clear that there is an orchestrated campaign by some persons to impugn the integrity and hard-won reputation of Dr Okonjo-Iweala. Whatever the motives of these persons may be, Dr Okonjo-Iweala is confident that they will fail – again – because Nigerians are too wise for their antics."

Investigations yesterday by The Nation revealed that the National Security Adviser (NSA), Gen. A.S. Mukhtar, had in a report to President Umaru Yar’Adua on June 27, last year, cited the alleged diversion of the vehicles by a former Deputy Governor of Osun State and Mr. K.O. Salami, whose identity was not immediately clear last night.

The report had said in part: "Two 4x4 Toyota Land Cruiser were purchased for project monitoring on the directive of the Ministry of Aviation (Air Transportation) on December 28, 2006, but the vehicles have never been at the project site. Mr. K.O. Salami should be made to account for the two (4x4) Toyota jeeps he signed for and collected on behalf of the Ministry of Air Transportation."

Fani-Kayode is facing trial for a breach of trust over the alleged diversion of the vehicles registered FG483 E21 and FG 484E21. It was learnt that the two implicated persons took advantage of their closeness to the former minister to commandeer the vehicles from NAMA pool.

A source at the EFCC said: "The involvement of these people in the diversion of the said vehicles is being investigated. Fani-Kayode, while in our custody, said he did not collect any vehicle from the Austrian contractor, George Eider. If we find anything against these people who collected the vehicles, they might be arrested and interrogated."

Following the NSA’s report, the vehicles were reportedly sent back to NAMA pool in good condition.

The source added: "One of the vehicles is still being used by the Minister of State for Transportation, Mr. Felix Hyat, while the other is at NAMA headquarters in Lagos for use by the Minister of Transportation, Mrs. Diezani Alison-Madueke, anytime she is in Lagos."

When contacted, the ex-deputy governor who pleaded not to be named, said: "I did not collect any jeep from anybody. I have many brands of SUV, why will I appropriate a government vehicle and be using it? I have always lived within my means; I am not driven by material acquisition. If they have their facts, you can come with them to prove what you have said."

Seven days after their arrest by the EFCC, Borishade, Fani-Kayode and Iyayi yesterday regained their freedom. Chief Magistrate Lamido Kabir granted them bail in the sum of N50million each, with one surety who must be a landowner in highbrow Asokoro or Maitama districts of Abuja.

The EFCC had argued against the bail, saying it was sure to bring more charges against the accused persons, and that it suspected they would do anything to escape justice and frustrate the trial if granted bail.

As guarantee, Chief Magistrate Kabir said the surety, who must be a director in a federal ministry, must deposit the Abuja Geographic Information System (AGIS) Certificate of Occupancy (C-of-O) on his land. The accused persons must deposit their international passports with the EFCC.

Also yesterday, the court admitted the Managing Director of the Austrian contractor-firm, M.S. Avsatel of Austria, Captain George Eider, to bail in the sum of N10million, with one surety who must be a director in a federal ministry, and a landowner in Asokoro or Maitama. Eider was also asked to deposit his international passport, while the surety must deposit an AGIS C-of-O with EFCC.

Eider was arraigned before the court by EFCC for alleged forgery, abuse of office and misappropriation of about N 6.5billion for the Safe Tower contract.

Fani-Kayode, Borishade and Iyayi were arraigned for alleged criminal conspiracy, breach of official trust, forgery and misappropriation of about N19.5billion Federal Government funds meant for upgrading the international airports in Lagos, Abuja, Port Harcourt and Kano.

According to the First Information Report, the offences are punishable under Section 97, 99, 314, 364 and 309 of the Penal Code Law on June 13, 2006. They all pleaded not guilty. The matter was adjourned till September 24 for substantive hearing.

Both Borishade and Fani-Kayode yesterday insisted that the trial was politically motivated. Fani-Kayode said he was sure of victory at the end. Borishade maintained that he would be vindicated.

A statement by Borishade’s media aide, Mr. Remi Ibitola, quoted the minister as saying: "The allegations against me are baseless, false and malicious. I am completely innocent and this will be proved in a court of competent jurisdiction. I urge the Senate Committee on Aviation and the EFCC to have the courage to admit that they have been misguided by the fake report written by one Captain Iyal in the office of NSA.

"The EFCC is a fine organisation whose effort in sanitising this nation is well-appreciated. But it will be very unfortunate for it to allow itself to be used by a gang of predators of power to serve their political agenda."

Source: The Nation