Tuesday 10 March 2015

How Jonathan Awarded $500m Defense Contract To Arthur Eze - SaharaReporters

SaharaReporters has obtained documents relating to a scandalously inflated $500 million defense contract that President Goodluck Jonathan awarded to Arthur Eze, a Nigerian businessman with a shady past, a close friend of the president and his wife, and a major financier of the ruling Peoples Democratic Party (PDP).



Our security sources said some officers of the Nigerian Air Force (NAF) were furious over the jumbo contract described by one source as “a pure waste.” The sources, most of them military personnel, told our correspondent that, in addition to its sheer extravagance, the contract has also saddled the Nigerian military with helicopters that have limited or no combat utility.



The documents obtained by our correspondent reveal that Mr. Eze, the chief executive of Triax, received the gigantic sum of $466.5 million in order to weaponize six Puma helicopters with the aid of an Israeli company named Elbit Systems. This meant that each weaponized helicopter cost close to $78 million. “For the price of each helicopter provided by Engineer Arthur Eze, the Air Force could have acquired seven top grade military helicopters,” said one of our sources.



Our sources also noted that the haste with which the contract was initiated, approved and executed raised serious questions. A memo dated November 20, 2014 and submitted by the Chief of Air Staff, A.N. Amosu, revealed that Mr. Eze had on November 4, 2014 submitted a proposal to the office of the National Security Adviser proposing to supply the upgraded helicopters to the NAF. The tone of Mr. Eze’s letter, obtained by us, indicated that he was deeply involved in sourcing and supplying hardware to the Nigerian military as it is embroiled in a fight against Boko Haram militants.



An Air Force officer said he was alarmed at the alacrity with which Mr. Eze’s overinflated proposal was approved by the NSA’s office. The NAF followed with an equally quick endorsement sixteen days later.



One of our sources accused President Jonathan and Mr. Eze of using the refusal of the US to sell Cobra attack helicopters to Nigeria as an excuse to engage in a large-scale squandering of funds involving the Federal Government and Mr. Eze’s company, the Triax Company Nigeria Limited. “In the US, a brand new AH Cobra attack helicopter costs around $12 million each,” said a source at the NAF. He added: “That means that, with $400 million, Nigeria could have purchased up to 40 brand new helicopters.”



According to the source, the Cobra attack helicopter is one of the best US-made helicopters. “It is highly effective in the battlefield. It would have given us big battlefield advantage over Boko Haram,” he said.



In an additional proposal, Mr. Eze’s company sought to purchase 4,000 57mm S5 rockets, 400 80mm S8 rockets, 500 general-purpose bombs, and 20,000 units of unguided rockets. His company also received a contract to refurbish three C-130 planes that had been sitting at the hanger of the Nigerian Air Force for several years.



A final invoice Mr. Eze submitted to the Nigerian government showed that he would receive $466, 500,000 to supply six upgraded Puma helicopters, four units of single-seater Sukhoi Su-25K (“Frog-foot”) Soviet-made ground attack jets, and two upgraded Su-25UB trainers for $330 million. In addition, he would receive $14 million for the shipping of platforms/ground support/line replacement of the six Puma helicopters; $44 million for some arms and ammunition earlier proposed; $37 million for the maintenance of C-130 engines, and $40 million for unspecified armaments for the NAF.



Our military sources stated that Mr. Eze’s invoice for the supply of the refurbished aircraft was massively inflated by international and Nigerian standards.



Several of the sources said Triax delivered the substandard equipment after Mr. Eze further padded the cost of the refurbished helicopters and the C-130. The sources revealed that, since February 15, 2015, when Chief of Air Staff Amosu showed off the helicopters and C-130 planes, none of the aircraft has been deployed even once to fight Boko Haram militants. “They are not in any combat-ready condition,” one officer fumed. “We are looking at a total waste of money for no good reason.”


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