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Reps query Ministry, FAAN over N52bn expenditure

By Tordue Salem
ABUJA—The Public Accounts Committee of the House of Representatives yesterday demanded details on the expenditure of over N52.8 billion generated between 2004 and 2008 by the Federal  Aviation Authority of Nigeria (FAAN).

The Deputy Chairman of the committee, Mr. Uche Ekwunife (PDP, Anambra), who presided at an account-defence session with FAAN, insisted that the agency must provide details of the expenditure of the money.

The committee also sought details on an N1bn intervention fund released by the Federal Government in 2006 to FAAN.

“The Ministry and the Federal Aviation Authority of Nigeria (FAAN) must provide us with details on how N11bn grant was expended and how they financed a deficit of N41.878bn between 2004 and 2008,” Ekwunife said.

The Auditor General’s office also availed the Committee of a sum total of N600million trade debts incurred by FAAN in the year 2007.

The committee, in a critical breakdown of the submission of FAAN by its Managing Director, Mr. Richard Aisaebeogun, said “Page 4 of the submission shows a total of appropriation of N23.699bn (2003-2008), total releases of N6.544bn for the same period and Total Expenditure of N3.185billion”

The Committee submitted that “You (FAAN) were silent on the releases for 2007 and the Expenditures for 2007 and 2008”, seeking to know what ‘was responsible for this”.

“Between 2004 and 2008,” the Committee said “You generated a total income of N78billion and Expended the sum of N85.83billion during the same period. How did you finance the deficit of N41.878billion?

“Between the expenditure figure of N3.185billion presented on page 4 of your submission and the Expenditure figures shown on page 11 which one is authentic?, the committee posed.

The Committee also sought to be furnished by FAAN of the “A breakdown of the Utilisation of N11billion grant shown on page 5 of your submission”, the Committee stated.

The Auditor General’s office also availed the Committee of a sum total of N600million trade debts incurred by FAAN in the year 2007.

While the Committee sought details on the debts, it also demanded to be furnished of a total of N326million posted as balances within the period.

The Committee also wants details on the 2006 Financial statement. Item II-Debtors and prepayments gave total as N12, 970, 600(2006) but under the 2007 year Account item II under comparative analysis schedule gave N23, 965,162, 000 for 2006, which is the correct one?”, the Committee queried.


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