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Alleged fraudulent contracts: Group calls for probe of Aviation Ministry

The Coalition Against Malpractices & Corruption (COMAC), has called on relevant agencies of the Federal Government, especially, the Economic and Financial Crimes Commission (EFCC) to probe procurement processes  at the Federal Ministry of Aviation and Aerospace Development, alleging what they describe as “fraudulent activities and awarding contracts to companies that are not traceable and qualified for such projects.”

The Coalition which is made up of the Centre for Democracy and Human Rights (CEDEHUR), Association of Media Practitioners in Oil and Gas Producing Areas (AMEPROGAS), and Arewa Youth Alliance for Progress and Development, said it has dully written to the Ministry, the
Permanent of the Ministry, Dr. Ibrahim Abubakar Kana, in pursuant to the Freedom of Information Act, 2011, requesting explanation and details of all procurement records, bid documents, payment vouchers, company registration verification, tax compliance certificates, and all other documentation relating to the award and payment of contracts but got no response. 

Briefing journalists on Tuesday in Abuja, the convener of COMAC, Comrade Odey Otunu, said: “Our FOI request was following our investigations which uncovered extensive violations of the Public Procurement Act, 2007, by senior officials of the ministry, in the award and payment of multi-billion naira contracts to non-existent companies, newly registered entities with no track record, tax non-compliant firms, and companies whose business objectives are grossly misaligned with the contracts awarded to them, amounting to about N30 billion Naira.”

However, while reacting to the allegations, the Permanent of the Ministry, Dr. Ibrahim Abubakar Kana, dismissed the allegation, saying he has not awarded any contract since his assumption of office at  the Aviation Ministry, noting that ” …In addition,  since I came to aviation, we have not awarded any contract.”

He clarified that Kana Investment Limited with registration number: 4191888, registered in July 8, 2001, which he is alleged to still be a director is inactive and belongs to his late father.

The Coalition also alleged that the ministry awarded contracts to non-registered/non-existent companies, noting that “several contracts were awarded to entities that do not exist in the Corporate Affairs Commission (CAC) registry—suggesting the use of shell companies to siphon public funds.”

The coalition also alleged that the ministry awarded newly incorporated companies with no track record contracts worth hundreds of millions of naira.

While speaking further, Comrade Odey alleged that: “Elhesed Global Concepts Limited with RC 2006495, is a newly registered company (registered on December 2, 2022), awarded multiple massive and high-value contracts within one year of incorporation.”

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