Senate wants technical committee to investigate N19.5bn aviation fund - It’s a grant -FAAN - No, it’s a loan - Finance minister

Soji-Eze Fagbemi and Taiwo Adisa, Abuja - 18.03.2008

WORRIed by the handling of the N19.5 billion Aviation Intervention Fund approved for the Aviation industry by the Federal Airport Authority of Nigeria (FAAN), the Senate Committee on Aviation on Monday called for the setting up of a Technical Committee to investigate all contracts executed with the fund.

In a report put together by a Consultant to the Committee, FAAN was also requested to provide vital documents to enable the Senate Committee unearth how the fund was used, even as there was a sharp disagreement between the Finance Minister, Dr. Usman Shamsudeen and the Managing Director, Federal Airport Authority of Nigeria (FAAN), Richard Aisuebeogun.

Presenting the detailed report, the consultant, Mr. Tony Uche, stressed the need to urgently set up the Technical Committee to investigate the spending.

“There is urgent need to set up a Technical Committee to investigate all contract executed with the Aviation Intervention Fund to ascertain whether or not the Federal Government actually received value for the amount approved for the project,” he said.

The Senate Committee said through the consultant that N6.5 billion of the fund was used for Safe Tower Project, N2 billion for payment of disengaged workers’ severance allowance while FAAN was paying back N222 million monthly for the loan.