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N11bn aviation fund still intact

Posted by By Sun News Publishing on 2007/01/08 | Views: 571 |

N11bn aviation fund still intact


Minister of Aviation, Chief Femi Fani-Kayode has denied reports that the N11 billion intervention funds for the aviation industry had been tampered with.

Minister of Aviation, Chief Femi Fani-Kayode has denied reports that the N11 billion intervention funds for the aviation industry had been tampered with.
Chief Fani-Kayode re-affirmed in Abuja on Sunday that the fund meant for capital projects is still intact.

The Minister, who spoke through Bayo Oladeji, his media assistant said: 'Not one kobo has been spent from the money since I came on board.

I have never signed anything on intervention. We have done everything possible in our power to protect the N11 billion. It would be spent in a prudent manner".

A newspaper had on Sunday alleged an N11 billion scandal involving an upfront commission of N650 million collected from a major bank in a deal which was struck in the aftermath of the ADC crash that claimed the lives of many Nigerians.

The minister insisted that no amount from the intervention fund would be spent on any project in the industry without the knowledge of the Presidential Implementation Committee and in strict observance of the due process.

Chief Fani-Kayode said investigations were on on the administration of N6.5 billion, which was part of the original N19.5 billion intervention fund granted by the Federal Government.

He noted that the arrangement by one of his ministry's agencies to service a loan of N6.5 billion granted the Nigerian Airspace Management Agency (NAMA) for the Safe Tower Project under the administration of the former minister, Prof. Babalola Borishade, with N250 million from the Federal Airports Authority of Nigeria (FAAN) monthly was unacceptable to him.

He stated that the N6.5 billion from the intervention fund was taken to a new generation bank by some top officials of the aviation agencies based on earlier agreement between them and the bank, noting that the lodgment of the money in the bank was without his approval.
He emphasised that the servicing of the loan was without his knowledge and that of the Presidential Implementation Committee.

The minister said he did not know anything on claims that some officials of his ministry negotiated a N650 million interest with a new bank where the balance of the intervention fund was transferred.
He added: 'At no time did any of us come up with any commission. So the issue of inducement to split the money between two banks is ridiculous and baseless".

Chief Fani-Kayode further stressed: 'There is absolutely no problem, no division in the ministry. It is those that have something to hide that are peddling such falsehood. We have no doubt that they will continue because they have nothing better to do. They can not distract us, we will remain focused. We are out to reposition the industry".

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