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JUNE 18, 2007 VOL. 21, NO. 10

Sharing the Airways Booty

Fani-Kayode.

While ex-staffers of liquidated Nigeria Airways continue to groan under the yoke of unpaid pensions and gratuities, choice properties of the organisation are sold to a chosen few
By George Umunnakwe
LIKE a festering sore, the reign
of sleaze at the Nigeria Airways Limited (NAL)– now liquidated– has continued to emit repulsive odour in and around the aviation sector.
While those indicted in the Come chop Nigeria Airways money debacle were identified as ‘’role models” in the society and are consequently left to walk tall and hold public office, against the recommendations of the white paper issued after the Justice Obiora Nwazota Judicial commission of inquiry, the settlement of NAL’s debt and of course, the selling off of its assets by Babington Ashaye, its liquidator, is still reverberating, years after the exercise ended.
Interestingly, prominent names such as Chief Afe Babalola (SAN), Chief (Mrs) M. Babalola, Segun Awolowo, Chief O.B. Lulu Briggs, Dr. Fasheun, Otunba Jobi Fele and Captain .A. Okpe, to mention but a few, are said to have benefited immensely from the sale of NAL’s properties scattered in Lagos, Nigeria, London and France. Other beneficiaries include Kehinde Kamson, Mrs. Eniola Bruce, Ayo Ayoola, an engineer and the Redeemed Christian Church of God, pastored by Enoch Adegboye, which bought two choice buildings at the Ikeja Government Reservation Area; Archbishop Vinning Memorial Church, Ajoke Stores and A-Z properties.
Following the debacle that was the Nigeria Airways Limited, former President, Olusegun Obasanjo, who observed that the 39 aircraft he left in 1979 in the fleet of NAL has been reduced to two operational aircraft, set-up a judicial commission of inquiry headed by Justice Obiora Nwazota (rtd). The seven-member commission was to ascertain among others, from January 1989 to December 1999, the financial management of NAL and for this purpose examine all books of accounts and records in order to determine whether there has been compliance with appropriate regulations.
Instructively, while the Justice Nwazota commission report led to the issuing of a white paper by the government, which were hugely embarrassed by the number of prominent citizens indicted in the NAL debacle, the validictory meeting of the Federal Executive Council (FEC) held on May 21, 2003, however, opened another vista to the issue. The government through Professor Jerry Gana, then Minister of Information and National Orientation, sought to sweep the report under the carpet. According to Gana, while addressing the press after the FEC meeting, government had identified the people that looted NAL, but their names could not be mentioned because they are individuals of high standing in the society who are role models.
Gana: “Government has reviewed the white paper and FEC has set up another committee to have a second look at the white paper. The people indicted were made up of about 100 eminent Nigerians who are role models, as such their names would not be made public."
If these sounded like sweet music in the ears of the indicted individuals, to the workers of NAL, now liquidated, it was simply a bitter pill to swallow as the workers became deflated knowing that from that point they were in for big trouble. In a document titled, “The real facts behind the liquidation of Nigeria Airways Limited,” signed by L.O. Animashaun, chairman, National Association of Aircraft Pilots and Engineers (NAAPE), I.N. Wusaini; chairman, Air Transport Services, Senior Staff Association of Nigeria (ATSSSAN) L. Engbele, chairman, National Union of Air Transport Employees (NUATE), the workers observed thus: “This was the point the then Minister of Aviation, Dr. (Mrs) Kema Chikwe, consolidated her search for the replacement of Nigeria Airways, and intensified her actions towards doing away with Nigeria Airways.” They further contended that it was against this background that Jonathan Jiya was returned as Managing Director of Nigeria Airways, Babington-Ashaye recruited as liquidator and Jamien Dodo as counsel to the liquidation while KPMG was chosen as Financial Advisers, “All to cover the lies of the government, finish and bury Nigeria Airways in the name of liquidation", the unions in the aviation sector noted.
Earlier, pointing out that NAL would not be wounded up without settling its workers based in the United Kingdom, Chikwe citing a letter received from the British Department for Transport on the accumulated indebtedness of NAL for various charges arising from its operations in Hearthrow Airport, London, demanded that NAL London workers be paid off. She also requested that the overseas stations be reduced to the barest minimum so as to keep the airline’s overhead cost down.
And so in a letter to Alhaji Atiku Abubakar, then Vice President, Federal Republic of Nigeria dated March 14, 2003 and titled: “Re: Request for approval for release of £1.161,260.39 from the CBN/Sundry Customer Account No.588-27-46084 and US$1,438.008 from CBN/BASA/POOL/ETC/Revenue Account No 588-27-46082” and signed by Dr. (Mrs) Kema Chikwe, Minister of Aviation, she noted that the British authorities had warned of unpleasant consequences, including possible detention of any aircraft operated by NAL, if the debts were not settled urgently. Chikwe observed that this will hamper operations of the proposed airline - Nigerian Eagle Air.
“Furthermore, her majesty’s Inland Revenue has filed a petition in court to commence winding-up of NAL,” she told the vice president.
Chikwe: “I wish to seize this opportunity to inform your Excellency that as a result of the low level activity of NAL, it has become expedient to reduce the staffing level of some of its overseas stations to the barest minimum to keep down the Airline’s overhead costs; one of the stations affected by this development is the London station. In order to down-size the staff strength without litigation, NAL is also requesting for funds to pay the terminal benefits of the staff to be laid off in London in line with United Kingdom Labour Laws.”
Letting the then Vice President into the debt owed ASECNA by NAL, the Minister who described the debt as “historical,” observed that it was agreed by NAL and ASECNA to be 3,839,837,59 Euros. “As your Excellency will note from the Ag. MD/NAL’s letter, ASECNA too has initiated a NAL winding-up process”, Chikwe pointed out.
Consequently, the Vice President approved the request, but enquired: “Is NAL still in operation?” With this approval, The Source gathered that a total sum of 683,844.84 Euros was paid as final entitlements, as at March 31, 2003 to 17 London local staffers of NAL. In all, A.B. Batek who happened to have served NAL for 31 years and three months received a total package of £57,001.12. followed by M. Yusuf with 30 years of service receiving £57,001.12. They came behind P. Minwala (Ms) who had put in 34 years of service to NAL. She received £59,803.12 as her entitlements. The least is S. Shadrawy (Ms) who according to the report has nine years of service to her credit. She went home with £19.164.83.
With this move, the then aviation minister and indeed the Nigerian government apparently shot itself on the leg. Nigerian local workers of NAL upon getting wind of the payment challenged the bias move by the government.
They tore to shreds the explanation given by the government that it was in obedience to the laws of the United Kingdom that the payments were made. “We are bewildered that the same government considers Nigerian laws as unworthy of compliance. Charity, they say, begins at home, but to President Obasanjo, charity begins abroad. This is clearly demonstrated in the payment of entitlements to London local NAL staffers,” Comrade Omotayo of NUATE said.
To Adesoji Adebola, counsel to Nigeria Airways workers, the conduct of the government, as advised by the Minister of Aviation, has shown that the workers of NAL had been divided into two classes: the London- based against the home (Nigerian) based workers, and the latter had been unfairly discriminated against, contrary to section 42 of the 1999 constitution of the Federal Republic of Nigeria.
Earlier, in a letter addressed to the Minister of Aviation, with reference no. MD.601 Vol.11/201, titled, “Request for Approval of UKPI,053,844.82 from CBN/sundry customer Account 2, Number 588-27-46084”, dated February 19, 2003, and signed by A.A. Okunnuga, Ag. Managing Director/Chief Executive and N.U. Iloabachine (Mrs), Ag. Director of Finance/Supply, NAL, they requested the minister to approve the sum of UKPI, 053,844.82 from the sundry customers Account Number 588-27-46084 for payment of critical operating debts in London.
This amount is, however, in sharp contrast to the letter addressed to Vice President Abubakar by Chikwe requesting approval for the release of UKP1,161,260.39 to enable it pay the debts and terminal benefits of local staffers of NAL London station.
“Our major creditors like British Airport Authority, Heathrow Park Hotel, Her Majesty’s customs and excise have withdrawn their services in addition to threats to wind up the Airline and revocation of operating license. We request that the sum of UKP370,000 out of the above request of UKP1,053,844.82 be remitted to the underlisted creditors to avert any unpleasant actions against the airline and possibly the Federal Government of Nigeria;” Okunuga told Chikwe.
Under the London station local staff terminal benefits, Okunuga, The Source further gathered, informed the Minister that “Approval was given for the rationalisation to avoid litigation, the final benefits must be paid to these staff on retrenchment in accordance with United Kingdom Labour Laws. The final benefits will amount to UKP683,844.82 by March 31, 2003.”
The beneficiaries, according to the Acting Managing Directors of NAL are:

•British Airways Authority
- UKP 120,000
•Inland Revenue Authority
- UKP 100,000
•Heathrow Park Hotel
- UKP 50,000
•HM Customs and Excise
- UKP 100,000
Total=UKP370,000
The letter which went through the permanent secretary to the Ministry of Aviation, further listed sort code; Account number; amount; name and address of each beneficiary’s bank.
Instructively, Chikwe in requesting approval from Abubakar listed the beneficiaries and amount owned as follows:
The Source gathered that the sum of £683,844.82 was paid to the various bank accounts of NAL, London local staffers in 2003.
Instructively, while the government was said to have spent much in settling its London local staffers, Babington- Ashaye, NAL’s liquidator said he had only realised about N8.15 billion, out of which N7.178 billion has been received, while the sum of N972 million is due from buyers of the company’s properties.
In a 55-page “Nigeria Airways Limited – in liquidation, Status Report as at June 30,2005, to the Committee of Inspection,” Ashaye in a letter to the committee members dated July 5, 2005 posited that the realisation of landed properties is still the only source of income. “The landed properties located in Nigeria are those that are being sold,” he told members of the committee.
Speaking further, the liquidator explained that disbursement to ex-staffers who are pensioners and have been physically identified by the liquidator and are certified not to be in possession of company’s assets amounted to about five billion naira. However, a total of N4,671,588,794 was recorded as verified claims by the NAL liquidator. On recovery of receivable and cash /bank balances, the liquidator narrated that efforts to recover receivables and cash have generated results. According to him, in May, 2005, the liquidators’ representatives, J. N. Jiya and the Economic and Financial Crimes Commission (EFCC) representative travelled to New York, USA to resolve matters relating to the outstation and its assets. The team, he further stated, resolved issues relating to the deposits and retention of fund with the following organsitions:
i Port of New York & New Jersey, - Approxi- $200,000
ii US customs- Approxi. $400,000
He further stated that “meeting was held in Washington DC with the legal firm handling the matter. Prospect of recovery is quite excellent.”
Ashaye also spoke of the discovery of some monies kept in a special safe in the premises of NAL. The funds which were recovered and banked in Standard Trust Bank Plc in the presence of the Nigerian Police are N3,867,900; £255; $3,091.
Also, the Central Bank of Nigeria (CBN) in letter dated December 14, 2004, addressed to the permanent secretary, Federal Ministry of Aviation, reported an inflow of US $16,122.48 in its JP Morgan Chase Bank, New York account by Stitching Beheer Derdengelden Russel Advocaten through ABN AMRO Bank Amsterdam. The letter signed by K. O. Adaramewa, Assistant Director, Funds, Foreign Operations Department, said the money represented the final remittance in the Bankruptcy case of Nigeria Airways in the Netherlands.
“Our account with the JP Morgan Chase Bank, New York has been credited with US D16,122.48 on October 18,2004 by Stitching Beheer Derdengelden Russel Advocaten through ABN AMRO Bank, Amsterdam, representing final remittance in the bankrupcy case of Nigeria Airways in the Netherlands,” the letter stated. Consequently, the liquidator computed NAL’s properties scattered around many streets within the GRA, Ikeja, Ikoyi, FESTAC Town; Apapa; Kano; Jos; Bank Road, Port Harcourt; and Abuja (properties outside Lagos) which he had received the monies to be worth N7.178 billion while the sum of N972 million is due from the buyers.”
Interestingly, while the management of Ajoke Stores got three properties along Adeyemo Alakija Street, GRA, Ikeja at a sum of N180 million paid in full, Nigerian Air Force (NAF) personnel got six properties along the same street at a sum which was not specified. Notedly, Fototek Industries, Ashglow Properties, Peace chambers, Molola Company and Interior Options Limited are said to be among the companies that bought NAL’s properties along Adeyemo Alakija Street, GRA, Ikaja.
Moving down the list of beneficiaries of NAL properties, Bishop Samson Ayorinde bought a N55 million property along Reverend Ogunbiyi Street, GRA, Ikeja, while NAF also took possession of two properties along the same street; Leadway Properties and Investment Limited paid for two properties worth N126 million. Olutyol Estates Development Limited also paid for two properties of NAL worth N126 million. On the other hand, Dr. Fasheun paid N57 million for a property along the street, even as Kehinde Kamson, Micheal Adetokunbo Martins, and Haruna-John completed the list of individuals that bought NAL’s properties on the street.
Still on GRA, Ikeja, Otunba Jobi Fele, paid N65 million for a NAL property along Esugbayi Street, just as Chrisland Educational Organisation bought into NAL properties on the street. Other beneficiaries were also Alhaji Suleiman Saliu and NAF which bought houses on Sowemimo street and Captain A. Okpo
Notedly, the Redeemed Christian Church of God paid N51million for a property at Micheal Ogun street, just as it paid another N52million for another on Oba Akinjobi street, all in the GRA, Ikeja– the same street where the likes of Segun Awolowo, Chief (Mrs) M. Babalola, Ademola Adetola and Mrs A.O.Abraham bought properties.
On the popular Remi Fani-Kayode street, B& F Associates paid a whopping N210.5 million to take possession of four NAL properties on the street. Again, Ademola Adetola joined Otunba Jobi Fele to own properties on the street, just as Royal Properties Limited paid for two along the same street that will also house Leeway properties Limited.
For the controversial sports ground on Oba Akinjobi street, Archbishop Vinning Memorial Church coughed out N625 million to acquire 10 acres of land there, even as Ajoke Stores again paid N250 million for the Nigeria Airways (head office – Obi village), Ikeja.
For the prestigious home of NAL’s Managing Director, along Glover Road, Ikoyi, Chief Afe Babalola paid N300 million to acquire the property and every other thing therein.
Also in Ikoyi, Thompson Avenue to be precise, Chief O.B. Lulu Briggs, A-Z Properties Limited and Messrs J & S Consults paid N310 million, N250 million, and N245million respectively to acquire NAL properties on the highbrow street, while the former Standard Trust Bank Plc paid N42.5 million to acquire 300 Wharf Road, Apapa.
Criticising the heavily ethnicised list, an aviation stakeholder questioned the rationale behind Ashaye pointing to the meagre amount he said he received for NAL properties, “My brother, this is daylight robbery. Let him come and account for all the monies he collected from the properties, in Netherlands, London and France,” the bitter stakeholder stated.
Obviously aware of the intrigues surrounding the NAL properties, when The Source put a call to the Araromi Street, Onikan office of Babington Ashaye, a lady that picked the call told The Source that her boss was not in town. When an appointment was demanded, the lady at the other end dropped the phone like hot potato.
Meanwhile, a source at the ministry of Aviation explained that efforts to get the NAL liquidator had been in vain as he is said to have refused attending meetings called to resolve the brouhaha. The source at the ministry feared that the liquidator might be on the run.
Meanwhile, Chris Aligbe, former Corporate Affairs Manager of NAL while condemning the way NAL properties were ceded out to ex- President Obasanjo’s apologists also criticised the manner their gratuity and pension are still being withheld years after promise of payment was made. He explained that a public hearing will likely be held to resolve the lingering issue.