The Joint Senate and House of Representatives Committee investigating the crash of Dana and Allied Airlines aircraft yesterday said the N300 billion Aviation Intervention Fund was diverted by the industry’s operators.
The Committee, which took on Aviation Minister Ms. Stella Oduah on the disbursement of the fund, said that it learnt that Air Nigeria got N35.5 billion from the Fund to upgrade its fleet but allegedly diverted the cash to other businesses.
The committee said because the operator failed to utilise the N35.5 billion credit facility to fix his fleet, Air Nigeria aircraft were grounded.
Oduah told the committee that because she did not like the situation of the industry when she was appointed, she requested for a review of the operation of the Fund.
She said: “The Intervention Fund was in existence before I came, but if it was working correctly, I couldn’t have gone to the Central Bank of Nigeria (CBN) to ask for a review.
“I met the Fund but for me to accomplish my mission, I knew that the Fund was not helping the industry and, therefore, I went to CBN to ask for a review.”
Committee Chairman Senator Hope Uzodinma asked the Minister whether it would be correct to conclude that the Fund is not working.
Mrs. Oduah said those who set up the Fund might have their goals, but the objectives were not in line with her mission statement.
She wanted a complete review of the sector.
Uzodinma said it was obvious that the Minister was not carried along in the implementation and operation of the Fund.
He said members of the committee have been briefed about how the Fund was diverted by operators who were granted credit.
Uzodinma said one of those who appeared before the committee said Air Nigeria got N35.5 billion from the Fund and diverted the money to other businesses including buying houses in Dubai .
Air Nigeria Chairman Jimoh Ibrahim, who was at the public hearing became agitated and attempted to respond to the allegation. But the Committee refused to yield the floor to him.
Oduah told the committee: “The aviation sector is about to die, except we do something urgently and that is why we developed a template to rescue the industry.”
Asked when she got the Dana plane crash’s report, the Minister said by 14.45 pm, she had been informed.
Nigeria Civil Aviation Authority (NCAA) Director-General Harold Demuren told the committee that the NCAA has submitted all documents relating to the crash to the Accident Investigation Bureau (AIB).
Demuren refused to confirm whether the ill-fated Dana aircraft was air worthy before it made the eventful flight.
He described AIB as an independent and autonomous body.
On what NCAA does with accident reports, Demuren said officials of the agency learn from such reports to prevent a future occurrence.
He noted that the Sosoliso accident report talked about ageing infrastructure at the Port Harcourt Airport.
The DG said the Sosoliso accident report informed the closure of the Port Harcourt Airport for complete rehabilitation of its facilities.
He said poor weather was a factor at the airport, but “today, weather forecast facilities have been improved”.
On sanctions, the DG said the NCAA has sanctioned many airlines that ran foul of regulations.
Asked whether NCAA conducted air worthy tests on the ill-fated Dana airline, Demuren said though tests are conducted on all aircraft, he would not talk specifically on the crashed Dana Airline until after the AIB investigation.
He noted that NCAA’s duties centre mainly on safety oversight
On facilities for servicing aircraft, Demuren said in December 1975, a National Aircraft Maintenance Hanger project was started, but some years later, it was cancelled and Arik Air bought over theuncompleted project and completed it.
He said Arik uses the facility for its aircraft only.
Reminded that he was appointed when aircraft crashes became an embarrassing phenomenon and that it has continued, the DG said:
“I stand here before you devastated. It should have been six years by October. The country was free of big aircraft accidents. Nigeria became a case study for other African countries and the world.
“Under one night, the whole thing burst. There were two accidents. I cannot walk away. I cannot jump ship. When the going was good and Nigeria was being celebrated, I was there. I cannot jump ship now.”
Before taking on Demuren, the committee members were divided over whether to allow the DG to speak for NCAA or not since the Senate through a resolution asked that he should step aside until after their probe.
Chairman of Air Nigeria Ibrahim later told the committee that when he took over former Virgin Atlantic, it was in decay.
He said the airline was owing $275 million and had only two aircraft.
He said immediately they took over, they started paying the loan owed by Virgin Atlantic.
He told the committee that from two aircraft, they increased the fleet to 12.
Curiously, the committee did not raise the issue of the N35.5 biilion Aviation Intervention Fund.
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