Tag: Senator Hope Uzodinma

  • Uzodinma denies link with 30 seized containers

    Uzodinma denies link with 30 seized containers

    Chairman, Senate Committee on Customs, Excise and Tariff, Senator Hope Uzodinma Tuesday washed his hands off the 30 seized containers of rice.

    Uzodinma who was reacting to an online publications alleging that he was mounting pressure on the Comptroller General of Customs, Col. Hammed Ali (rtd) to release 30 containers of smuggled rice imported by Nigeria Customs Service as yeast.

    He noted that contrary to the reports, the letter sent to the NCS was based on a petition by one Masters Energy Commodities Trading Limited to the committee, he chaired.

    He said that with the power reposed in the legislature to among other things attend to concerns of Nigerians, the committee decided to play its part.

    He said, “Sometime around November last year, the committee received a petition from Masters  Energy Commodities Trading Limited company alleging that 30 containers of rice imported by them was seized by Nigeria customs even when they paid the necessary duties and the necessary assessments were done by Nigerian Customs  and that they needed our intervention.

    “Of course you know, as representatives of the people, that is why we are here. What I did was, the committee met and then sent out the petition to Customs Service asking them to react to the petition.

    “The Customs reacted through a letter sent to the Committee on 25th November, 2016, confirming that this rice was imported and that the rice was seized because it was not declared according to the right classification.

    “When I got that letter, to my surprise, the tone of the response was suggesting a kind of innuendo as if our letter was for them to release the rice.

    “No. what we wrote was very clear, you can see the copy of the letter, it said make comment, react to this comment because every Nigerian citizen is entitled to fair hearing.

    “And when we got their reply, we looked at the response from the Nigerian customs Service, signed by the comptroller General.

    “We immediately resolved and did a letter thanking him for his quick response to our enquiry and also reminding him that the sole intention in the matter was that justice should be done in line with their extant rules.

    “The decision neither suggested that I have any link or any relationship with the importer nor did we suggest to the Nigerian Customs to wave any procedure or any internal mechanism by them as to the treatment of issues like this.’’

    Uzodinma expressed surprise at the display of the letter sent to the Customs boss on social media.

    He said it was obvious some people were trying to play politics with governance, adding that he would not succumb to their diversionary tactics.

    He said that he would continue to oversight the Nigerian Customs Service as long as   he remained the Chairman of the committee.

    “You will agree with me that there was nothing in that letter suggesting ulterior motive, rather it was consistent with what is expected of me or the committee that is over sighting customs and as it has to do with their relationship with the public.

    “That is what we did and I believe very confidently that what we did is still within the purview of our oversight powers and function.

    “I was surprised to see my letter posted on social media, carrying inuendos like Customs Committee Chairman linked with rice importation.

    “I don’t import, I don’t do business of rice. Each time I want to do my constituency outing, if it is necessary to include rice in what  I will distribute, I buy my rice in from either rice mills in  Abakiliki, Benue  state and I distribute to my constituents.

    “I don’t even eat parboiled rice because it is not healthy. I am not also in the business of rice trading, so I don’t know what is the intention of whoever that has decided to create this situation.

    Speaking on whether the committee invited the service to give its side of the matter, the chairman said the committee does not invite people on just any matter until deemed necessary.

    He added that the committee wrote a second letter to Ali to clarify that the letter was generated as result of a petition and not he had any link with the seized rice.

    The chairman stressed that that the committee thereafter respected the stands of the Customs Service, asking it to ensure that justice was done.

    He further blamed the service for not doing a thorough job and thereafter trying to indict him in a matter he had no link with.

    “Our major concern in the whole of this is whether the seizure was legitimate seizure or was done in error and the customs explained to us that it was not done in error and we have no reason  not to believe them.

    “There is an evidence of by the Customs, issuing a pre-arrival assessment report showing how much duty is payable.

    “The question is that you customs did this assessment. You issued the invoice, you received the duty. Why did you do wrong assessment.

    “While I am not speaking for the importer, it is also important for Customs  to share in the blame, because why in the first place did they not do the right assessment given the declaration given by the importer.

    “They said it was wrongly classified but there is a declaration that it is parboiled rice.  Are there two types of par boiled rice, the answer is no.

    “So you do all these things and when you are not able to have your way, you begin to look for whom to blame. So we must be sincere and honest,’’ he said.

    On whether it was an attempt by Customs to avenge  Senate’s  stand on the suspended policy on payment of customs duties on old vehicle, the lawmaker said that he could not be deterred.

    “I will not want to lower the integrity of the Senate to begin to compare this institution with the Nigerian Customs Service.

    “We are one government and by protocol the Senate is far superior to the Nigeria Customs Service, a paramilitary outfit of government.

    “The constitutional powers as contained in the Constitution that ushered in  this administration  empowers the senate to invite any public officer that is in charge of public expenditure to appear before the senate and appear in a proper manner.

    “The head of the Customs service is the Comptroller general of Customs.

    “That is the highest rank and every beneficiary of the service should be proud of the service and as a way of encouraging motivation for the upcoming officers, whose aspirations among other things may be one day to become the head of customs.”

    He said it was important for the head of the service to be properly dressed to motivate officers.

     

  • Senate seeks new laws for Customs to block leakages

    Senate seeks new laws for Customs to block leakages

    The Senate is considering new laws for the Nigeria Customs Service (NCS) that will effectively block revenue leakages in the service.

    The Senate Committee on Customs and Excise which began the tour of Customs facilities in Abuja Wednesday gave the hint at NCS headquarters, Abuja.

    The committee said that the new laws would fashion ways and means to increase revenue generation capacity of the service by blocking all sources leakages.

    Chairman of the Committee, Senator Hope Uzodinma, insisted that the Service should be generating enough revenue to fund the country’s annual budget.

    Uzodinma expressed disapproval at a report by the Ministry of Finance which indicated that the NCS had only generated less than N400 billion in 2016.

    Uzodinma said that the Senate will likely re-enact the Act establishing the NCS for optimal performance.

    He said, “We are looking into the operations of Customs Service, looking at the areas of revenue generation and possible leakages with a view to finding solution.

    “We have done a very detailed work here we have established contacts with the commands.

    “All we are interested in doing is to bring up a robust position that will help the NCS earn more revenue.

    “In order to do that effectively we are looking at their current modus operandi with a view to refining how things are done so that more revenue can accrue to the Service.

    “By the time we look at the operations of some of these ports, we will come back and look at how best to amend and alter the existing Act.

    “We want to create a document that will be bold enough to earn the country the kind of revenue we are looking for from non-oil sector.

    On the report that oil majors were not accessible to the Service for payment of levies, Uzodinma noted that “these are some of the areas that require enabling laws.”

    He added, “There are some limitations that have not made it possible for Customs to perform the way they should according to their mandate.

    “Those are things that we will also look at and remove all obstacles to enable them function effectively.”

    The committee requested for the submission of some relevant documents to enhance its work.

    It gave the commission till Friday October 28, 2016 to submit the requested documents and answer all the queries posed.

    Among others, the committee sought to know how the seven per cent Negotiable Duty Credit is managed as well as how it handled seized cargoes and overtime cargoes.

    The Service is also expected to submit details of how it handles seized cigarette and alcohol, record of auctioned overtime cargoes as well as auctioned seized cargoes.

    The committee also sought the record of all waivers granted in the last three years and the value of the waivers.

    The detailed record of sugar levy is also to be submitted to the committee as well as other details of accruable revenue.

    The Comptroller General of NCS, Col. Hameed Ali assured the committee of the full cooperation of the Service.

    Ali directed his officials to provide the committee with all the information and documents required.

     

  • Senate probes N500b aviation bail fund

    Senate probes N500b aviation bail fund

    The Senate Monday commenced investigation into the utilization of N500 billion allegedly released by the Federal Government as bailout for the Aviation and Power sectors.

    The Central Bank of Nigeria (CBN) however said that only N120 billion was released to the ailing airlines designated through the banks.

    Chairman, Senate Committee on Aviation, Senator Hope Uzodinma, who chaired the investigative hearing, said the mandate of the Joint committee on Aviation and Anti-Corruption is to probe disbursement and utilization of $40million AFRIX loan and N86.6billion alleged to have been released by the Federal Government in 2011 for the rehabilitation and development of infrastructure in the Aviation industry.

    Minister of Transportation, Chibuike Amaechi, who was first to address the hearing said that his ministry “does not know anything about $40million neither do we know about any N86.6 billion.”

    Amaechi also said that his ministry does not know how the funds were generated and disbursed.

    Minister of State for Aviation, Hadi Sirika, on his own, noted that it was obvious that the funds were wrongly used and probably diverted by the beneficiaries.

    The minister added that “this is something that went terribly wrong in the past.”

    “What is unbelievable as discovered by the committee is that these monies were  transferred out of the country; the monies were transferred into private accounts, transferred into foreign banks and used to buy private houses,” the minister said.

    A director in the CBN, Mr. Mudashiru Olaitan said that the apex bank’s intervention in the Aviation and Power sectors was to the tune of N500 billion.

    The CBN director said that N300 billion was actually released and dedicated to power and the airlines as bail out.

    The balance of N200 billion, he said, was for Small and Medium Enterprises (SMEs).

    He said that the Bank of Industry was the managing agent while the tenure of the loan was between 10 to 15 years.

    Olaitan said that the beneficiaries have been servicing the loan with only N81 billion is still outstanding.

    Senator Uzodinma said that the Joint Committee was interested to know which instrument created the intervention fund, who approved the fund and who established the guidelines for disbursement.

    He also said that the committee wanted to know whether at any time the CBN engaged the services of consultants; who shortlisted the 10 airlines that benefitted from the fund and whether there are funds to be recovered; if yes, whether it is from dead airlines or those still flying.

    Olaitan said that the fund was created by the debenture issue of the Bank of Industry and approved by the Presidency.

    He said that some banks provided security for the loan while the guidelines were established by the CBN including the tenure of 10 to 15 years.

    He was silent on who shortlisted the benefiting airlines.

    On whether assessment of the impact of the fund on airlines had been made, he noted that if the fund did not come when it did there would have been no airline flying in the country today.

    He said that one or two of the airlines that benefitted from the funds were no longer flying.

    On who applied for Air Nigeria which told the committee that it did not apply for any loan because it did not need it, he said that BoI processed the applications.

    The BoI also confirmed that Air Nigeria duly applied for the loan.

    A member of the committee, Senator Bala Ibn Na’Allah, said that they are interested in the list of the airlines that accessed the fund and are still in operation.

    Na’Allah said that the committee was told that one of the beneficiaries of the fund transfer red $18million to a bank in Ghana while another N150 million was transferred to the account of one Olajumoke.

    It was also revealed at the hearing that a particular airline received $6million to purchase Emergency Location Transmitter (ELT) that is sold $4,000.

    The committee said that even after collecting $6million for the ELT, the airline still failed to buy the equipment.

    Another member of the committee, Senator Shaaba Lafiagi, said that it appeared that some banks used the CBN to collect what the airlines were already owing them.

    For instance, Air Nigeria was said to have owed United Bank for Africa (UBA) N35.5 billion which the bank allegedly collected when it acted for Air Nigeria to qualify for the bailout.

    Senator Uzodinma noted that issues involved are grave and should be treated as such.

    He noted that it is very disturbing development to learn of allegations that the monies meant to rescue the airlines were not properly utilized for the stated objectives.

    He said, “The allegations are not just absurd but shocking. We are here to ascertain the veracity or otherwise of such allegations of misappropriation or diversion of the said funds. As is normally the case in any investigation we hold, nobody is guilty unless it is proven beyond all reasonable doubts that he or she is guilty.”

    Senator Uzodinma noted that curiously, from the list of beneficiaries of the funds, some of the airlines have folded up.

    He noted that available information indicated that Arik Airlines, Dana Airline,Aero Helicopters, Kabo Air, Caverton Helicopters, Overland Airways, Chanchangi Airline and Odenegene Air Shuttle benefitted from the funds.

    He said that from the list, it is clear that some of the airlines have become moribund.

    He said that some of the questions agitating their minds included how much did each airline get, did the management of the airlines deploy the fund for the purpose it was released, if the funds were judiciously applied why did some of the airlines that benefitted fold up, what was the criteria for choosing the airlines that benefitted, to what extent was the Ministry of Aviation of the Nigeria Civil Aviation Authority involved in the short-listing of the airlines that benefitted.

    He also said that it should be asked who profiled the airlines that benefitted for qualification.