Aviation fraud: Austrian firm gave us spending money —Witness

Written by Ise-Oluwa Ige & Ikechukwu Nnochiri
Tuesday, May 12, 2009



ABUJA — JUSTICE Sadiq Umar of an Abuja High Court yesterday heard how an Austrian firm, AVSATEL Communications gave some top officials of the Aviation industry thousands of euros in spending money even after receiving estacodes from the Federal Government.

The occasion was the resumed hearing in a criminal charge preferred against former Aviation Minister, Prof Babalola Borishade at the Abuja high court sitting in Maitama.

One of the star witnesses of the Economic and Financial Crimes Commission (EFCC), Alhaji Sesan Adelaja Oreagba who gave evidence in the matter yesterday said that the senior government officials collected the monies in foreign currencies immediately after contract for the Safe Tower Project was awarded to the company in 2006.

He explained that the top government officials were on a training tour of Vienna, Austria when the said monies were offered and collected.

Alhaji Oreagba who gave evidence yesterday is the General Manager, Terrestial Services in the Directorate of Airspace Safety and Electronics Services.

He was led by EFCC counsel, Chile Okoroma. EFCC had alleged that some persons were bribed before the contract was awarded.

Former Aviation Minister, Professor Babalola Borishade and four others are standing trial over allegation of N19.5billion fraud.

Borishade is standing trial along with former Managing Director of Nigeria Airspace Management Agency, NAMA, Mr. Roland Iyayi; the MD of AVSATEL Communications, Mr. Georg Eder and an aide of the former minister, Mr. T.O. Dairo.

The former Minister, his aide and Iyayi were accused of misappropriating the money. Out of the N19.5billion, a contract of N6.5billion was awarded to AVASATEL Communications for the rehabilitation of four of the nation’s airport.

But all of them have denied the allegation of receiving bribes. They pleaded not guilty to the charge preferred against them, adding that the EFCC should bring its witnesses, if at all it had any, to prove the allegation against them.

Oreagba took the witness box yesterday.

He said before the high court that they were given estacodes by the Federal Government before leaving for Austria.

He however said that 17 officials of the National Airspace Management Agency, who were part of the trip got one thousand euros each from AVSATEL, adding that other officials from other agencies under the Aviation Ministry were also part of the trip.

In his evidence before the court yesterday, Oreagba said, “After the contract for the rehabilitation of the Safe Towers was awarded, AVSATEl organized a training for some officials of NAMA and staff of other agencies under the Aviation Ministry in Vienna, Austria and Finland.

“We were given Estacodes for the trip by the Federal Government, but when we got to the Airport, a lady approached us and took us to the hotel reserved for us by AVSATEL.

“She said our accommodation, feeding and transport have been fully paid for by AVSATEL. We had about 200 euros for hotel accommodation but we were told that the rate in the hotel was 208.

He told the court that as at 2006 when the contract was signed, he was not in charge of the Control Tower Project.

When asked if it was right for the Austrian Firm to pay for the feeding, accommodation and transportation since they got Estacodes from the government, Oreagba said he did not see the terms of agreement in the contract papers and therefore will not be able to comment on what AVSATEL did.

“As at 2006 when the project was conceived and executed, I was not in charge of Safe Tower Project. If it was in the contract agreement that the contractor (AVSATEL) should pay for their feeding, accommodation and transportation, there is nothing wrong in what the contractor did. I did not see the contract papers, so I would not know if it was agreed.

“I did not tell AVSATEL that the government gave me Estacodes because there was no need for that. The company did not ask us to write favourable report after returning to the country. The 1000 Euros given to each of us was not meant to induce us to do anything for the company”, he said.

Borishade was accused of receiving Euro 15,000 (fifteen thousand euro) in form of hotel accommodation, souvenirs from AVSATEL as gratification, while Iyayi received his in form of hotel accommodation and air tickets and one, Oreagba Adelaja, a public officer also allegedly received one thousand euros as gratification from the firm.

Borishade was charged as the first accused person and was said to have received gratification worth Euro 15,000.00 (Fifteen Thousand Euros) from Eider (the 4th accused person) in the form of hotel accommodation, souvenirs on account of favour shown to Avsatel Communications Limited while awarding the contract for the Safe Tower Project.

Iyayi, Dairo and Eider were also charged with forgery.

They were accused of forging a document entitled, “Urgent Need To Replace the Obsolete Equipment in the Control Towers of the Nation’s Designated International Airports in Preparation for the ICAO Audit Scheduled for September, 2006” dated 25th October 2005.

Count 1 of the charge states, “That you Professor Borishade being a former aviation minister, Roland Iyayi being a former Technical Adviser to Borishade, T.A. Dairo being a former personal assistant to the said Borishade and Georg Eider on or about the 25th October 2006 in Abuja did agree among yourselves to do an illegal act to wit: forgery and thereby committed an offence punishable under section 97 (1) of the Penal Code Act Cap. 532 Laws of the Federation.”

Count 2 charged them with making a false document purporting same to have been made by one Nnamdi Udoh whom they knew did not make it with the intent to commit fraud.

They were also charged with making another false document entitled, “Report on the Evaluation of the Tender Safe Tower Project” dated 9th December 2005 with the intent that fraud might be committed and thereby committed an offence punishable under section 364 of the Penal Code ACT Cap.532 Laws of the Federation 1990.

Other offences brought against the suspects include using as genuine, forged documents, receiving and giving gratifications among others.

Count 8 which accused Iyayi of a similar offence read; “That you Roland Iyayi on or about 30th May 2006 in Abuja while being a public officer (i.e Managing Director of NAMA did corruptly receive for yourself from Georg Eider of Avsatel Communications Limited gratification in the form of hotel accommodation and air tickets on account of favour shown to the said Avsatel

Communications Limited by yourself in the exercise of your official functions in the N6.5 billion Safe Tower Project awarded to it by your ministry and thereby committed an offence contrary to section 8 (1) (a) of the Corrupt Practices and other Related Offences Act 2000.”

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