Maduka Cosmos, whose Coscharis Motors sold the controversial armoured
cars to a department of the Ministry Civil Aviation, has told the House
of Representatives Committee on Aviation the matter that his company
followed due process.
Mrs. Stella Oduah, the Minister who is
implicated in the alleged fraud, is absent at the hearing, from which
Premium Times is carrying live updates.
“Absence of the Minister
is a slap on the face of the House,” said an angry Jerry Manwe, a member
of the committee from Taraba State. Last week, the committee gave Mrs.
Oduah up till yesterday to appear before it, recognizing that she was
away in Israel on official duty.
“To the best of my knowledge, we followed all due process,” Coscharis said. “We were interviewed by SSS.
We were interviewed by the National Security Adviser. Every due process by law was followed. We do business with morality.”
The
Deputy Comptroller General of Customs, Manasa Daniel Jatau, has told
the committee that Coscharis imported the cars without paying import
duties because there was a waiver from the Ministry of Finance. He
added that Coscharis obtained the waiver claiming the armoured cars were
part of 300 vehicles being imported for the Sports Festival in Lagos
last year. The impression given, therefore, was that the beneficiary of
the waiver would be the government of Lagos State.
Get Liveblog Updates from PREMIUM. TIMES HERE
15:45
The
cars inspected by the House committee yesterday, Tuesday, are different
from the ones stated in the documents between NCAA and Coscharis, the
reps said.
Lawmakers say they saw cars with different chassis number from those on the communication between NCAA and Coscharis.
But
Coscharis said since it did not inspect the cars with the House
members, it cannot say whether that was the car they delivered to NCAA.
The firm insists it has done no wrong.
15:31
Coscharis
admits telling the Ministry of Finance/NSA the cars were meant for Lagos
state government, but said the arrangement was a usual “sponsor
practice” for an event like the sports festival, and there was nothing
wrong with that.
The company insists it did not lie. It said
during events the company gives cars for use by government, in exchange
for waivers that would be used for importing new ones as replacement.
With
a lot of gusto, Coscharis said it price was right. But lawmakers have
busted that claim by revealing that the firm sent different prices to
NCAA and NSA.
Coscharis also claims the car in question goes for about N87 .7 million(factory price) without tax, shipping etc.
But a lawmaker has confirmed that he received a quotation from an American firm for the same car for about N42 million.
Jerry Manwe( a member): “Your own bullet proof is not manufactured in the moon”
Coscharis says a seven series in America is different with what they got from Europe.
Again,
the committee said the cars they inspected yesterday are different9in
terms of chassis number) from those stated in the documents between
Coscharis and NCAA.
15: 07
Coscharis’ Maduka: To the best
of my knowledge, we followed all due process. We were interviewed by
SSS. We were interviewed by the National Security Adviser. Every due
process by law was followed. “We do business with morality,” he says.
Another
Coscharis official: Armoured cars are in levels; Level B7 is the
highest for any civilian/VIP armoured cars. More than that is for
military tanks.
Coscharis: The controversial cars are level B7.
The BMW 760 series, bought by NCAA, goes for 418 thousand Euro from
factory without shipping cost, taxes, etc.
Coscharis offers to demonstrate a powerpoint to show how it arrived at the cost. But is disallowed by committee.
14.55
Coscharis’
Maduka: “People have spoken, different media have written, I kept
quiet. Nobody has called me to ask anything. But I thank God for this
opportunity to state my own side of the story.”
“People have called me from US embassy to ask when did you start money laundering.”
He says the whole controversy is “politically motivated”. He pleads to be allowed to speak.
Mr Maduka said the matter is so important that his Uncle died and will be buried tomorrow, but he has to attend the sitting.
He said he is prepared to give details how Coscharis arrived at the price.
14.46
First Bank asked to step aside.
Coscharis takes over.
Coscharis
chief, Cosmas Maduka, calls the car scandal “very controversial matter
that has made newspaper headlines for two consecutive weeks” as he takes
the hot seat.
14.37
First Bank cannot explain how the
loan given to NCAA for all its 54 cars climbed from earlier stated N564
million to N643 million.
The bank claimed earlier that the
difference was because the two armoured cars were not
included-apparently untrue because of the cost.
Under questioning by
the committee, the bank now says only the NCAA can explain the
difference; the bank says it was only concerned about what the NCAA as a
customer asked for.
“Our job as financier are based on what the customers are asking for”
14.29
Interaction with First Bank representative continues…
First
Bank: The armoured BMWs were not part of the first order from NCAA
which comprised mainly Land Cruisers totaling less than N600 million.
House chair, Nkiruka Onyejeocha: So could it be that the BMWs were an afterthought?
First Bank: That’s for the NCAA to answer.
14.24
“Absence
of the minister is a slap on the face of the House,” Jerry Manwe, a
member of the committee from Taraba state said, apparently angered by
the minister’s absence.
14.23
First Bank official, Seyi
Oyefeso, that oversaw the transaction addressed the House committee on
behalf of the Executive Director of the bank.
First Bank was invited
to make proposals alongside other banks and tender was opened publicly
on 21 of May, 2013 in the presence of other banks and media
First Bank was afterwards shortlisted alongside 7 others.
First Bank granted a loan facility of N643 million for purchase of assorted cars.
14.19
The
Customs representatives at the hearing said Coscharis lied to the
Ministry of Finance and NSA, making them to believe that the cars were
for Lagos state government, for the National Sports festival.
The
NSA office issued End User certificate without knowing that it was
doing so for cars to be delivered to Stella Oduah or the NCAA.
So,
in a way, the NSA office is right to have told PREMIUM TIMES it did not
issue end user certificate for any bullet proof cars for Minister Oduah
and the NCAA.
14.11
Deputy Comptroller General of Customs, Manasa Daniel Jatau, said the following
The two cars were imported through Tin Can Port 2; Imported from Antwerp Netherlands.
The vehicles were cleared 19/6/2013.
Coscharis imported the cars without paying import duties since there was a waiver from the ministry of finance.
Coscharis
obtained the waiver claiming the armoured cars were part of 300
vehicles imported for the Sports festival in Lagos last year, and
therefore the beneficiary was Lagos state government.
The due import duty should have been N10.1 million.
The cars had an End User Certificate from the NSA office in the name of Coscharis.
The waiver obtained by Coscharis was for one year; as such the time of importation this year was covered.
Customs
admit its laws requires that it enforces duty on any item for which
waiver was obtained, which was not used for the purpose stated-in this
case, for Sports festival.
13.53
Car dealers as well as
end users of armoured cars are mandated to seek authorization from the
office of the National Security Adviser, NSA, before ordering or
importing such vehicles into Nigeria.
Last week, reliable sources
at the office of the NSA told PREMIUM TIMES no authorization
certificate was ever issued to either Minister Oduah or the Nigerian
Civil Aviation Authority, NCAA, to procure the controversial vehicles.
13.50
Nigerian Customs confirmed that the two cars were imported and cleared at Tin Can 2.
The
Customs said the import duty on the two cars which should have been N10
million plus were not paid because there was a waiver note issued by
the finance ministry.
Customs also confirmed there was an End User certificate issued by the office of the National Security Adviser, NSA.
13.43
The
hearing, proposed to start at noon, started 25 minutes late. The
minister is absent at the hearing. The committee said it will take a
position on that later