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Re: FGN Response on Virgin Nigeria - 15 Questions for Mr. Adeniyi

Written by kingsley Omose

Wednesday, 27 August 2008

"Over the years, public officials hardly bothered about the interest of our people when entering into contracts and agreements on behalf of the government," presidential spokesman Olusegun Adeniyi told a local newspaper last week.

"But with Yar’Adua many things are going to change ... under his watch, while we want foreign investment and would respect the sanctity of legally-binding contracts, he will not allow a situation in which our country continues to be short-changed. "

The above statement was used in an article “Virgin Nigeria now a Cautionary Tale for Foreign Investors”, which appeared in BusinessDay 27/8/08.

The words are credited to Olusegun Adeniyi, the Senior Special Assistant to Mr. President, and if true, raises some intriguing questions.

Let me provide the context for the said statement. Sometime this month, the Federal Government grounded the flight operations of Virgin Nigeria Airways in Lagos

According to the government, VNA was illegally operating its domestic flights from the Muritala Mohammed International Airport instead of Muritala Mohammed Airport 2.

Although VNA had been operating its international and domestic flights from MMIA since 2005, it had since 2007 come under considerable pressure to relocate to MMA2.

MMA2 had been built by a private company under a 30 year exclusivity deal with FGN to handle all domestic flights in and out of Lagos.

Following repeated threats by FGN, all other airlines operating domestic flights had relocated to MMA2 with the exception of VNA.

VNA had based its refusal to relocate on the existence of a contract with the FGN to operate both its international and domestic operations from MMIA.

This according to VNA was in an effort to turn MMIA into a hub terminal servicing the West African sub region.

FGN on its part denied the existence of any such agreement but curiously conceded to the existence of a letter endorsed by the then Minister of Transport agreeing to that.

It however claimed that the said minister. Isa Yaguda, was acting outside his powers although Mr. Yaguda has now issued his own statement denying such a charge.

Although VNA’s action at the Federal High Court was still pending, the FGN went ahead and forced VNA to move its domestic operations from MMIA to MMA2.

The defense of the FGN was that no order of court had been issued against it restraining the forced eviction of VNA from MMIA.

Leaving the legal issues aside, I am baffled by the statement credited to Mr. Adeniyi in an effort to justify the strong arm tactics adopted by FGN against one of its corporate citizens.

Because that is what VNA is, a Nigerian registered tax paying company with minority foreign shareholding interest put at 49%.

The questions I have for Mr. Adeniyi, a former chief lamentator whose Verdict column in Thisday was strongly critical of government actions in the past, are as follows:

First, when he claims that public officers do not take the interest of Nigerians into consideration when entering into agreements, which Nigerians is he referring to?

Is he referring to the generality of Nigerians or those who felt marginalized by contracts and agreements during the Obasanjo administration?

Second, what are the criteria for determining which agreements have been entered into by public officers in the interest of “Nigerians”?

Third, how would Mr. Adeniyi classify the recent power contracts signed by Mr. President with Siemens, a company indicted for engaging in corrupt practices in Nigeria?

Fourthly, how would Mr. Adeniyi classify power contracts awarded to non-existent companies by high ranking public officers who walk as free men amongst us?

Fifth, can Mr. Adeniyi point to any public officer who between 1999 and date who has been indicted for entering into contracts that are not in the interest of Nigerians?

Sixth, when Mr. Adeniyi says under the Yar’Adua watch many things are going to change, is he implying that many more companies will suffer the same fate as VNA?

Seven, when Mr. Adeniyi asserts that FGN will respect the sanctity of legally-binding contracts, is the FGN going to rely on objective or subjective standards?

Eight, does this mean that all contracts which do not pass FGN interpretation of what amounts to legally-binding contracts automatically stand annulled?

Nine, what roles if any are reserved for the judiciary in the event of disputed interpretations on what amounts to legally binding agreements?

Ten, by claiming that Mr. President will not allow a situation where Nigeria continues to be short-changed, is Mr. Adeniyi implying that the VNA contract falls into this category?

Eleven can Mr. Adeniyi shed more light on the criteria by which Mr. President came to the conclusion that the VNA agreement was short-changing Nigerians?

Twelve what are the criteria adopted by Mr. President to ensure that the foreign investors who enter into agreements with government pass the “not short-changing Nigeria test?”

Thirteen does the “under Yar’Adua many things are going to change” explain the decision to demote 130 senior police officers in rank?

Fourteen, where does Mr. President intend to balance his new found love to protect the interest of Nigerians and the investors who have invested billons of Naira in Nigeria?

Fifteen how can Mr. President justify the reversal of the Siemens ban for engaging in corrupt practices in Nigeria while sanctioning the forced eviction of VNA from MMIA?

I rest my case.

Read Kingsley's blog at http://omi-gbigbonacollective.blogspot.com/

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