Tag: FAAN

Trouble is brewing at the Federal Airport Authority of Nigeria (FAAN) due to the sudden movement of its procurement department to the Directorate of Corporate Services.     The Minister of Aviation and Aerospace Development, Festus Keyamo, and his associates allegedly orchestrated this move to gain unrestricted access to FAAN's funds.   Stakeholders at FAAN are reportedly at odds over the attempted relocation of the procurement department to the Directorate of Corporate Services, sources told SaharaReporters.   A memo dated October 7, 2024, from the Director of Human Resources and Administration, Dr. Luqman D. Emiola, to the Managing Director and 11 directors of the Federal Airports Authority of Nigeria (FAAN), confirmed that Keyamo issued the directive, which was with immediate effect.   As the aviation minister, he has been vocal about reforming the industry, but some of his methods have been met with skepticism and resistance.   The memo obtained by SaharaReporters, titled "Re: Reassignment of procurement department to the directorate of corporate services," partly reads, "Further to the directive by the Honourable Minister of Aviation and Aerospace Development, I write to formally inform you that Procurement Department of the Federal Airports Authority of Nigeria (FAAN) has been reverted to the Directorate of Corporate Services."   It added, “Consequently, Management hereby direct Procurement Department to report to the Directorate of Corporate Services. This directive takes immediate effect." Meanwhile, following the release of the memo, SaharaReporters learnt that officials and stakeholders in FAAN have been speaking against the directive by the minister, branding it as a plot to gain access to the finances of the aviation agency.   According to sources, the stakeholders also claimed that moving the procurement department to the Directorate of Corporate Service would allow Keyamo and his cronies to award contracts to themselves and whoever they desire without following laid down guidelines.   “That was how the former aviation minister, Hadi Sirika, was able to issue contracts to his relatives and friends because the procurement department was under his control," said one of the sources.   “They want to be able to easily put their hands into the fund of the parastatal, so that they will be able to do all the contracts of FAAN, determine who contracts will be issued to and how much will be given as kickback and the Managing Director of FAAN, Mrs Olubunmi Kuku, will not have a say.”   "Keyamo is trying to replicate the same thing through the procurement department,” the source maintained.   In order to curb the mismanagement of funds in FAAN, stakeholders are calling for the establishment of a board of directors, noting that it will also give room for checks and balances.   “If we have a board, some of the things we do that we have to seek the permission of the minister for will not be necessary. The unilateral decisions usually taken by the minister will be looked into," the source said.   “We can call what is happening as a power tussle between the MD of FAAN and people interested in the procurement department. These are serious interferences that will not allow FAAN to move forward. We should make sure the board is in place and everything is done in line with the laws.”   “The procurement should be moved back to where the Act states that it should be to avoid secrecy in issuing of contracts and spending of funds,” another source said.       Bureau Of Public Procurement Intervention A document also obtained by SaharaReporters shows how the Bureau of Public Procurement (BPP) tried to correct the movement of the procurement department, branding it as an ‘anomaly’ and ‘not in line with the establishment law and guidelines’.   The BPP, in a memo to the Managing Director of FAAN dated August 6, 2024, stated that according to the provisions of the Public Procurement Acts, 2007, the procurement department must be a full-fledged department reporting directly to the Office of the Accounting Officer.   The BPP noted that moving the procurement department to another department will streamline and restrict the procurement department to tenders function only, contrary to the provisions of the Procurement Act, 2007, Procurement Procedural Manual and SGF Extant Circular.   The BPP urged the MD of FAAN to comply with the Procurement Act and make the procurement department stand on its own.   The memo partly reads: “Bureau hereby requests that the Managing Director takes all necessary steps and measures towards correcting the anomalies by implementing the following, as provided below:   "The Procurement Department to made a full-fledged Department domiciled under the Office of the Accounting Officer;   “The Procurement Department shall report directly to the Accounting Officer and not through or under another Department;   “The functions and schedules of the Department/Officers shall be in compliance with the provisions of the PPA, 2007, Procurement Procedural Manual and SGF Extant Circular;   “The organogram should be reviewed to reflect the Procurement Department as being under the Accounting Officer and in alignment with the scheme of Service for Procurement Officers, as approved by the National Council on Establishment; and   “Organize an In-House Capacity Training for the Management and other Key Officers of the Agency on the Principles and Practices of Procurement in line with relevant Law and guidelines.”   However, efforts to get the Minister of Aviation to react to the allegations were not successful, as he did not respond to calls and messages sent to his mobile line