Senate investigates N19.5 bn aviation intervention fund

30.01.2008

The Senate Committee on Aviation on Tuesday began investigations into the N19.5 billion intervention fund released by the Federal Government in 2006.

The fund was released for the rehabilitation of the aviation industry. Speaking at a stakeholder's meeting in Abuja, the chairman of the committee, Senator Anyim Ude, said there was the need for Nigerians to be re-assured that the money had been “judiciously used.”

“The application and disbursement of this fund has generated a lot of comments from within and outside the industry. “Was the intervention fund a loan or a grant? Is it true that as a result of the loan negotiated by FAAN without carrying NAMA along, NAMA was to repay N666 million quarterly to FAAN while FAAN repaid N537 million quarterly to the bank?” he asked.

He said the consequence was that the operations of both FAAN and NAMA were almost crippled in 2007 because the debt burden wiped off their votes for capital projects. Other problems afflicting the industry, which the committee would also investigate, included the Bilateral Air Services Agreement (BASA) Fund.

Also to be looked into would be the new formula for sharing aviation revenue from ticket sales charges. He said the committee would also investigate the privatisation of Skypower Aviation Handling Company Limited (SAHCOL).

It would also investigate the debt profile of FAAN and the additional schemes and regulations by Nigerian Civil Aviation Authority (NCAA) to enhance air safety.

Ude said the debt profile of FAAN was disturbing. He said FAAN was being owed N7.8 billion while its indebtedness to other individuals and organisations stood at N3.6 billion. “NAMA is also afflicted by the same virus. The Senate Committee on Aviation would like to know its own strategy to kill the virus,” he said.