Senate Threatens FAAN MD over Alleged Failure to Remit N1.5bn

Senate Threatens FAAN MD over Alleged Failure to Remit N1.5bn

Deji Elumoye in Abuja

The Senate has threatened to declare the Managing Director of the Federal Airport Authority of Nigeria (FAAN), Rabiu Yadudu, unfit to hold public office over his alleged failure to remit N1.5 billion Internally Generated Revenue (IGR) of the Nigeria Meteorological Agency (NIMET) in the past six years.

It also declared that it would not hesitate to issue a warrant of arrest against the FAAN boss over his refusal to be accountable for funds accruing to NIMET.

The Chairman of the Senate Committee on Public Accounts, Senator Matthew Urhoghide issued the threat weekend, following the failure of FAAN MD to appear before the Committee to respond to allegation of non-remittance of NIMET’s 10 per cent annual revenue from landing charges.

Urhoghide said: “We have asked FAAN Chairman to appear before us and he has refused to show up. We will be compelled to issue warrant of Arrest on FAAN Managing Director. It is an insult to us not to appear before us, the action of FAAN Managing Director is uncivilised.

“If he does not care, we will declare him that he does not responsible to hold public office. FAAN failed to up with their N1.5 billion financial obligations.”
The Committee had relied on the 2016 Auditor Generals of the Federation’s (AuGF) query which accused the FAAN of owing N1.5 billion NIMET charges as unpaid arrears of 10 per cent landing charges.

The query reads, “Examination of the agency’s approved Internally Generated Revenue and Expenditure budget revealed that FAAN owed a total of N1.5 billion to the agency unpaid arrears of 10 percent landing charges.”
But, NIMET its response stated: ” Efforts have been made by NIMET management to recover the outstanding amount, such efforts include reconciliation meetings with FAAN and discussion with the management of FAAN, we have received assurance from them that the payment of the debt will commence in 2018.

“We have been reliably informed that FAAN has included the amount vowed in their 2018 budget.”
Investigations, however, revealed that up till the time of filing this report, FAAN was yet to remit the amount owed NiMet.

It was further gathered that NiMET had been written since 2010 to demand for the debt when the debt was about N900 million.

The first correspondence was written to the Minister of Aviation on 26th of August, 2010.
In the letter, NiMeT complained that since August 2008 when FAAN engaged the services of MAEVIS for the collection of its revenue, including landing charges no remittance had been made. The engagement of MAEVIS was expected to make it easier for FAAN to remit NIMET’S share of landing charges. This did not happen and accumulation of collected but unremitted 10 percent landing charges for the agency has continued till now.

In another letter written on March 5, 2012, NIMET informed the Managing Director of FAAN of amount owed the agency while another letter dated November 8, 2012 was written to FAAN Managing Director on same debt which had increased to N1.098 billion.

As at 28 November, 2014, the debt owed by FAAN had increased to N1.5 billion and another letter was written to FAAN on March 9, 2015 on same debt .
The final letter was written on 5th October, 2017.

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