The Auditor-General for the Federation has flagged the payment of N526.49 million by the Federal Ministry of Aviation and Aerospace Development for the procurement of firearms and ammunition for airport security operations, citing a number of procurement and documentation irregularities.
The findings were contained in the Auditor-General’s 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies.
According to the report, the ministry paid N270.02 million through two payment vouchers dated January 10 and May 23, 2023, for the procurement of AK rifles, red-dot sights and AK ammunition intended to enhance security operations at the nation’s airports.
The audit report said there was no evidence of approval from the National Security Adviser for the procurement at the time of the transaction. It also noted that the company’s quotation, several due-process documents and Store Receipt Vouchers were not attached to the payment vouchers.
The Auditor-General further raised concerns over the custody of the firearms, stating that although the Federal Airports Authority of Nigeria had reportedly confirmed that the weapons were supplied to the armoury of the Nigeria Security and Civil Defence Corps headquarters in Abuja for safekeeping, there was no supporting evidence confirming that the items were actually in the NSCDC’s custody.
The report said the lapses could expose the government to the risk of diversion and loss of public funds, attributing the situation to weaknesses in the ministry’s internal control system.
The ministry, however, rejected the allegations, maintaining that the procurement went through the required procedures and that all necessary approvals and documents were obtained.
It said the relevant documents, including award and acceptance letters, Bureau of Public Procurement reviews, Federal Executive Council approval, contract agreements, security clearance from the Office of the National Security Adviser and payment vouchers, were available.
The ministry also said the security clearance for the company had been obtained from the NSA’s office.
The Auditor-General, however, said the ministry’s response was unsatisfactory and maintained that the audit finding remained valid pending implementation of its recommendations.
It recommended that the Permanent Secretary be required to account to the Public Accounts Committees of the National Assembly over the N270.02 million and recover and remit the amount to the Treasury.
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The audit report also identified another payment of N252.47 million made to the same company through two payment vouchers dated February 10 and May 23, 2023, for the procurement of sub-machine guns, pistols and ammunition for airport security operations.
The ministry again maintained that the procurement process complied with applicable regulations and that the required approvals and supporting documents had been obtained.
It also submitted a letter from the NSA conveying security clearance for the company, as well as a delivery note forwarded by the Director of Finance and Accounts of FAAN.
The Auditor-General, however, similarly rejected the explanation as unsatisfactory and retained the finding pending implementation of the recommendations.
Foreign Company Engagement
The report also raised concerns over the ministry’s handling of contracts for the construction of control towers at six airports, involving payments totalling N163.92 million to six contractors.
It said five of the contractors received N30.95 million each on June 1, 2023, while another received N9.18 million.
The Auditor-General noted that the contracts, awarded on May 24, 2018, had a combined contract value of N4.46 billion and remained incomplete, particularly in their technical components, six years after the award.
According to the report, agreements relating to five of the contracts were executed in November 2021 by Nigerian representative contractors acting on behalf of United Kingdom-based companies.
The audit raised concern that there was no evidence of work corresponding to the N163.92 million paid through the representative contractors.
It further warned that executing the agreements by proxy could make some contractual provisions difficult to enforce and expose the government to potential financial losses if the projects were not completed.
In its response, the ministry said it had no direct engagement or agreement with the foreign company, explaining that the relationship between the six Nigerian contractors and the foreign firm established their respective commitments.
The ministry also attributed delays in completing the projects to the release of funds by the Federal Government, while assuring the Auditor-General that procurement regulations had been followed.
The audit findings have renewed scrutiny of financial controls, procurement processes and accountability within the Federal Ministry of Aviation and Aerospace Development, particularly in contracts involving sensitive security equipment and major infrastructure projects.