IT was bought to raise its Internally Generated Revenue (IGR) base. But since the Bauchi State government acquired the Embraer 145 aircraft, it has been a drain pipe, rather than being a pot of cash, writes AUSTINE TSENZUGHUL.
Why did the former National Chairman of the Peoples Democratic Party (PDP), Alhaji Ahmadu Mu’azu, acquire an aircraft for Bauchi State in the twilight of his second term as governor in 2006?
Those who know Mu’azu as a business-oriented person felt he bought the aircraft to increase the Internally Generated Revenue (IGR) of the northwestern state. They believed the former governor probably planned to commercialise the plane. Mallam Isa Yuguda, who took the mantle of leadership from him, many thought, would sustain the vision. Others felt the acquisition of a plane was just a misplaced priority.
Bauchi has one of the best international airports in the country. The facility, built by Mu’azu’s successor and inaugurated in February 2015, is well-equipped.
Ironically, the controversial aircraft, bought with the tax payers’ sweat, touched down at the Abubakar Tafawa Balewa International Airport on September 17 for the first time since the airport was inaugurated.
The Embraer 145 aircraft, marked “5N –BJM”, was bought at $17.5 million and leased to Messrs Donnier (Dana) Aviation Ltd., who doubled as consultant to the airplane at the cost of N4 million weekly. The figure rose to N6 million weekly effective from 2013 after a revaluation.
A source close to the immediate past governor said: “From the beginning of the Governor Yuguda regime in 2007 to April 2015, the aircraft was leased to four operators. First it was IRS in 2007, with an expected monthly income of $115,000 to Bauchi State.”
It was learnt that the airline did not keep its own side of the bargain as it did not remit a dime to the state’s coffer for 17 months after the lease had been signed.
Uncomfortable with the development, Yuguda asked that the aircraft be grounded after series of talks,with IRS, which calimed that it had spent about N125 million on its maintenance.
With the collapse of the agreement with IRS, Messrs HAMSAL Air Ltd took over the plane in August 2009 with an agreement to remit to the state’s account N15 million every month.
Under HAMSAL’s management, the plane was taken to Ogama in Portugal for routine inspection and maintenance. It remained in Portugal till 2011. Strangely, the state government picked the maintenance bill despite the fact that the aircraft was being managed by an airline.
When the plane became operational in 2011, HAMSAL was refunded N128 million for the purported service and maintenance. The company was also paid N45 million for May, June and July in 2011. The purpose for the payment was not specified.
The payment triggered questions from some members of the Bauchi State Executive Council, who were said not by in Yuguda’s ‘kitchen cabinet’. An unconfirmed report said those who raised questions on the deal were kicked out of the Yuguda administration.
In August 2011, Associated Aviation indicated interest in leasing the aircraft and the plane was leased out with the approval of the state government. In the léase agreement, Associated Aviation accepted to pay a monthly rental fee of N16 million but on quarterly arrangements.
Unlike the previous leasees, Associated paid N50 million, covering the 2011 and January 2012 payments. Based on the agreement, the leasee was responsible for the maintenance of the plane for as long as the aircraft was in its custody.
The Associated Airline could not underwrite the expenses when the plane was also flown to Ogama, Lisbon, Portugal for ‘A’ Check and the aircraft was still in Portugal when it was due for a ‘C’ Check, thereby incurring more expenses.
Unable to settle the bills, the airline went back to the former administration under Yuguda government for bailout, a request that the government graciously obliged.
When The Nation checked at the airline to find out if an agreement existed between the state government and Associated Airline for such bailout, there was no written agreement that the state would be responsible ‘C’ Check.
A top official of the Associated Airline at its Lagos Office, who refused to disclose his name, wondered what informed media probe into the deal. The official said: “We’ll deal with you nosey journalist. Go back to your Bauchi and ask the state government for the contract details. And if I see you in this office again, you will end up in the lagoon. Stupid Bauchi journalist ko.”
At the Abuja office of the airline, no member of staff was willing to volunteer information on the “Bauchi bad deal”, as an official described it.
But, one thing that was established in Lagos was that Assoviated Airline had asked the Bauchi government to pick the maintenance bill with a promise to “settle the bill later”.
The airline also asked for a waiver, which the state government approved.
According to a source in Bauchi, “it was when Associated Airlines could neither refund the maintenance and the ‘C’ Check expenses that Overland Airways showed up”.
The source went on: “But Overland noted that our plane was no longer airworthy. Overland claimed the aircraft’s records were not up-to-date. So, it demanded that we update the records, return the plane to an airworthy condition. These demands got a speedy approval of the former governor.
“The state government further approved and released $600,000 to Overland in addition to $215,000 for the renewal of the EMB 145,5N-BJM’s insurance.
“Though I was part of the immediate past administration and I am assuring you that, that plane was rather a drain on the state resources because it did not generate even N1000:00 to the state government. Regrettably, up to the time the plane was in Morocco, the state was spending N4 million monthly as salary to its crew”.
The source, who has relocated to Abuja, said it was from the last leasee that the aircraft was taken to Morocco, North Africa, presumably, for a ‘C’ check and that when some of us were disengaged.
Another source, who pleaded for anonymity, told The Nation in Abuja: From the Associated, our aircraft was taken to Atlantic Air Industries, Morocco for maintenance reasons. But, I was made to understand that buyers were being looked for. When that Information leaked, the government put the deal on hold.
It remained unclear how the state government secured the plane’s release from the Moroccan aviation outfit. But, when Mohammed Abubakar, a former civil servant and one-time Attorney-General and Commissioner of Justice in the state, assumed office as governor, he raised an Assets Recovery Committee, under the chairmanship of an Air Force Officer, Air Commodore Ahmed Tijjani-Baba )rtd).
It could be recalled that Governor Mohammed Abubakar of Bauchi State in his 100 days in office broadcast disclosed that his public Property Recovery Committee discovered an aircraft belonging to the state in Morocco.
Abubakar said that the recovered aircraft would be received by the state government in few days to come at the Abubakar Tafawa Balewa International Airport, Bauchi.
He said that the aircraft was discovered as one of the state’s missing assets by the committee set up by his administration and headed by Air Commodore Ahmed Tijjani-Baba (rtd).
“I wish to announce the fruitful efforts in locating the state-owned “Embraer 145 Aircraft in Morocco and soon it will land at the Abubakar Tafawa-Balewa international Airport in a matter of days,” the governor had announced in his address on the occasion of his 100 days in office.
However, Yuguda said the fuss over the alleged missing aircraft was uncalled for. According to him, a detailed brief on the controversial plane is contained in the handover notes, and that his did not need any assets recovery committee to discover what happened to the aircraft.
He added that he even included a paragraph about the plane in the handover notes’ executive summary he prepared for Abubakar.
The governor promised that series of meetings were concluded in respect to the retrieval of the plane and assured “the plane would be received at the Abubakar Tafawa Balewa International Airport, Bauchi in a matter of few days”.
There was jubilation when Capt. Edwards Boyo, of Overland Airline, landed the 54-seater Embraer 145 at the Abubakar Tafawa Balewa Airport, Bauchi on September 17. Both Boyo and the Bauchi plane were received by Nuhu Gidado, a civil engineer and Abubakar’s deputy. The governor was away to Abuja.
Although, governor has succeeded in retrieving the aircraft, which is parked on the tarmac at the Abubakar Tafawa Balewa Airport but, Abubakar has a long way to go as he has vowed to clear the eight-year rot to justify the overwhelming mandate given to his All Progressive Congress (APC) on April 11.
Deputy Governor Gidado has led other officials to inspect the aircraft where it is parker on the tarmac. In the team of inspectors were: Secretary to the State Government (SSG); Chief of Staff to the Governor special advisers to the governor, chairman of the Assets Recovery Committee and other party chieftains.
At a press briefing, Gidado acknowledged: “Our aircraft has not generated funds to the coffers of the state. Rather, the state has being spending its resources on it. But, we will discuss with the management of Overland on how we can generate funds from it. But for now, we are yet to know what to do with the plane.”
There is sharp disagreement on what the government should do to the recovered plane. Some have advised the state to sell off the plane and use its proceeds for other social amenities.
Others believe the plane should be retained to boost patronage to the Tabaw Balewa International Airport. They argue that it will attract more tourists to the state, especially the Yankari Game Reserves.
