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Chief Gani Fawehinmi,
LLD, SAN

Chief Fawehinmi's website

I commend the effort of Festus Keyamo in taking up the gauntlet to ensure that wherever we find corruption in Nigeria, we will fight against it.

 

This is one accusation of corruption that should not be allowed to be swept under the carpet.

 

 

PRESS STATEMENT ON THE CAR SCANDAL OF THE HOUSE OF REPRESENTATIVES
by Chief Gani Fawehinmi, LLD, SAN

 

Festus Keyamo’s allegations against the House of Representatives of the National Assembly regarding the purchase of cars from Peugeot Automobile Nigeria Limited (PAN) are very serious and they demand very quick investigation by all security agencies in the country including the Police, State Security Service, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Economic and Financial Crimes Commission (EFCC), etc, etc. 

 

Simply put, the allegations are as follows:

 

1.       On Wednesday, 12th December, 2007 the House of Representatives passed a resolution approving the purchase of three hundred and eighty (380) Peugeot 407 cars for oversight functions of its Committees.

 

2.       On Thursday, 13th December, 2007, a memo was raised by Hon. Aliyu Dikko, Deputy Chairman, House Committee on House Services to the Speaker referring him to the resolution and the decision to buy the said cars from Peugeot Automobile (Nig.) Limited (PAN).

 

3.       The said Memo was approved by the Speaker, Hon. Dimeji Bankole and sent to the Clerk of the House of Representatives and the Clerk of the National Assembly for further action.

 

4.       On Friday, 21st December, 2007, Peugeot Automobile (Nig.) Limited (PAN) submitted a proforma invoice for three hundred and eighty (380) units of 407 ST Sports (Auto) valued at N2,359,486,500.00 (Two Billion, Three Hundred and Fifty-Nine Million, Four hundred and Eighty-Six Thousand, Five Hundred Naira) which makes the cost of each unit to be N6,209,175.00 (Six Million, Two hundred and Nine Thousand, One Hundred and Seventy-Five Naira).

 

5.       Based on the above, the Clerk to the National Assembly awarded the contract for the supply of three hundred and eighty (380) of 407 ST (Sports Auto) to Peugeot Automobile (Nig.) Limited (PAN) at the amount quoted by Peugeot Automobile (Nig.) Limited (PAN).

 

6.       On Thursday, 3rd January, 2008, the contract was accepted by Peugeot Automobile (Nig.) Limited (PAN).

 

7.       The House paid the total sum of N2,359,486,500.00 (Two Billion, Three Hundred and Fifty-Nine Million, Four hundred and Eighty-Six Thousand, Five Hundred Naira) to Peugeot Automobile (Nig.) Limited (PAN) as quoted.

 

8.       What was quoted by Peugeot Automobile (Nig.) Limited (PAN) is not what was eventually supplied.

 

9.       What the Company quoted for was the 407 ST Sport Automatic at unit price of N6,209,175.00 (Six Million, Two hundred and Nine Thousand, One Hundred and Seventy-Five Naira).

 

10.     What was eventually supplied was the 407 Comfort Automatic which is shown in Peugeot Automobile (Nig.) Limited (PAN)’s price list to be worth N5,100,000.00 (Five Million, One Hundred Thousand Naira).

 

11.     The difference therefore per unit of car supplied is N1,109,175.00 (One Million, One Hundred and Nine Thousand, One Hundred and Seventy-Five Naira).  This transalates to a total of N421,486,500.00 (Four Hundred and Twenty-One Million, Four Hundred and Eighty-Six Thousand, Five Hundred Naira) overpayment or misappropriated by the House.

 

12.          Another curious thing is that the total amount for the contract i.e. N2,359,486,500.00 (Two Billion, Three Hundred and Fifty-Nine Million, Four hundred and Eighty-Six Thousand, Five Hundred Naira) includes Value Added Tax (VAT).  This is shown in different payment vouchers which came upto N117,974,325.00 (One Hundred and Seventeen Million, Nine Hundred and Seventy-Four Thousand, Three Hundred and Twenty-Five Naira).

 

13.     The House then went below again to pay the same amount directly to the Federal Inland Revenue Services (FIRS) making double payment of Value Added Tax (VAT).

 

14.     If the additional payment of VAT is added to the over inflated cost of cars that were actually supplied, it would amount to a total of N539,460,825.00 (Five Hundred and Thirty-Nine Million, Four Hundred and Sixty Thousand, Eight Hundred and Twenty-Five Naira) which has been fraudulently removed from the accounts of the National Assembly.

 

15.     From the totality of the documents on the transaction, no discount was given to the National Assembly or House of Representatives on the Three Hundred and Eighty (380) 407 Cars supplied.

 

16.     On Monday, 27th October, 2008, Peugeot Automobile (Nig.) Limited (PAN) stated that it did not give any discount in view of the urgency of the order which necessitated an “off factory production” and special shipping terms.

 

17.     On 29th October, 2008, when Keyamo appeared before the House Committee on Ethics and Privileges, the members were more interested in querying him over his source of information and who gave him the right to demand for explanation from a public office holder.

 

On the face of these allegations there is a prima facie case of gross corruption and abuse of office which amounts to a total violation of Section 15(5) of the Constitution of the Federal Republic of Nigeria, 1999 that provides as follows:

 

“The State shall abolish all corrupt practices and abuse of power.”

 

I personally did not like the way the House of Representatives’ Committee on Ethics and Privileges treated Festus Keyamo when he appeared before the Committee on Wednesday, 29th October, 2008.

 

The attitude of that Committee was disgraceful and totally unbecoming of members of the House of Representatives.  On that day and during the so-called hearing the members of the Committee put themselves above the people of this country and the laws of the Nation.  That was quite abominable.

 

I was shocked when they questioned the source of Keyamo’s information in accusing the House of Representatives of fraudulent practices which allegations obviously amount to crime and unconstitutional behaviour of seemingly elected representatives.

 

Surely, many of the members of the House of Representatives are lawyers and they should be aware of plethora of legal authorities that in proving crime, an accuser can obtain his information from any source.  I will refer to one of the authorities.  It is the case of Torti Ufere Torti v. Chief Chris Ukpabi (1984) 1 SCNLR 214 at 239 – 240, paras. H-A .  In that case, the Supreme Court per Hon. Justice Aniagolu, JSC, stated the law as follows:

 

“Again, as was held in Kuruma v. The Queen (1955) A.C. 197, the test to be applied, both in civil and in criminal cases, in considering whether evidence is admissible is whether it is relevant to the matter in issue.  If it is, it is admissible and the Court is not concerned with how it was obtained.  Although I must express reservation on the wideness of that proposition which seems to suggest that relevant evidential material which was obtained even by felonious means was admissible once it is shown to be relevant, I would subscribe generally to the view that relevant evidence which is produced before a court would be admitted by that Court unless there is some compelling reason, based on some principle of law, dictating its exclusion.  That case received consideration during the hearing of Musa Sadau and Another v. The State (1968) 1 All N.L.R. 124 in which about the same conclusion was arrived at.”

 

I commend the effort of Festus Keyamo in taking up the gauntlet to ensure that wherever we find corruption in Nigeria, we will fight against it.

 

This is one accusation of corruption that should not be allowed to be swept under the carpet.

 

 

 

 

 

 CHIEF GANI FAWEHINMI, LLD, SAN

 Monday, November 17, 2008

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