Dana plane crash: N300bn aviation intervention fund diverted –N’ Assembly

Posted by admin House, Legislature, Senate Saturday, June 23rd, 2012

By: ADETUTU FOLASADE-KOYI, Abuja

Date:

Thu, 06/21/2012 – 23:52

The National Assembly Joint Committee on Aviation investigating crash of the Dana and Allied Airlines Aircraft yesterday said N300 billion Aviation Intervention Fund has been diverted by industry operators.

The committee, chaired by Senator Hope Uzodinma, also revealed how Air Nigeria allegedly accessed N39.3 billion out of the fund but used it to purchase properties in Dubai. It also emerged that the joint committee had summoned the Governor of Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi and Managing Director of Bank of Industry, Evelyn Oputu, to come and explain how the Aviation Intervention Fund was managed by both agencies. Uzodinma said members of the committee had been briefed on how the fund was diverted by operators who were granted the credit.

“For instance, yesterday (Wednesday), we were told that N39.3 billion received by Air Nigeria operators was diverted into other businesses such as buying houses in Dubai. Instead of using the funds to improve his fleet, we were told that the fund was used to buy houses; that has led to the grounding of the fleet of Air Nigeria.”

At this point, Air Nigeria Chairman, Jimoh Ibrahim became agitated and sought to breach protocol by making some explanations before he was officially invited by the committee to make his submissions.

But the committee cut him short and upon insistence to talk, the committee threatened to invite the Sergeant-At-Arms (the National Assembly’s security unit). A contrite Jimoh quickly apologized. Moving on from there, Aviation Minister, Princess Stell Oduah told the committee that because she did not like what she saw on ground when she was appointed, she asked for a review of the fund.“The Intervention Fund was in existence before I came but if it was working right I couldn’t have gone to the Central Bank of Nigeria (CBN) to ask for a review.

“I met the Fund but for me to accomplish my mission, I knew that the Fund was not helping the industry and therefore I went to CBN to ask for a review. “The aviation sector is about to die except we do something urgently and that is why we developed a template to rescue the industry.”Oduah said not less than 12 airlines in the country accessed the fund meant to rescue the aviation section from total collapse.

Director General, Nigeria Civil Aviation Authority (NCAA) Mr. Harold Demuren, however, refused to tell anything relating to the Dana crash. He insisted that NCAA had submitted all documents relating to the crash to the Accident Investigation Bureau (AIB) as required. He also refused to confirm whether the ill-fated Dana Airline was airworthy before it made the fatal flight that claimed the lives of over 153 people.

He said since AIB was an independent and autonomous body, NCAA had no control over the bureau. On what NCAA does with accident reports, the DG said officials of the agency learnt from such reports to prevent future occurrence. The DG said the Sosoliso accident report informed the closure of Port Harcourt Airport for complete rehabilitation of facilities.

He said poor weather was a factor at the airport but “today weather forecast facilities have been improved.” On sanctions, the DG said NCAA had sanctioned many airlines that ran foul of regulations. Asked whether NCAA conducted air worthy tests on the ill-fated Dana plane, the DG said though tests were conducted on all aircraft, he would not talk specifically on crashed Dana plane until after AIB investigation.