ANAP Cries Out Over Huge Debts Owed FAAN By Clients
…Says It Is Affecting Agency’s Operations
…Urges FG To Repay $500M Chinese Loan Taken On Its Behalf
The Association of Nigeria Aviation Professionals (ANAP) has stated that the massive debts owed the Federal Airports Authority of Nigeria (FAAN) by its clients are preventing the agency from discharging its duties as entrenched in the Act establishing it .
This just as ANAP also urged the Federal Government should be responsible for the repayment of the $500 million Chinese loan obtained from the Exim Bank of China for the construction of new terminals in some parts of the country.
The union’s position is contained in a letter addressed to the Minister of Aviation, Sen. Hadi Sirika, copied Permanent Secretary, Minister of Aviation, CEOs of FAAN, other agencies in the sector, signed by Secretary General, ANAP,Comrade Abdulrasaq Saidu, and made available to aviation journalists at the weekend.
In the letter, the union lamented that various clients of FAAN blatantly refused to honour their agreements on land, shop rentages, concessions, Build Operate and Transfer (BOT) and billboard adverts with the agency.
The union also observed that there were untapped FAAN revenue points, and called for urgent action by the government to block these leakages in the system.
On the Chinese loan, ANAP argued that since the $500 million loan was obtained by the former Aviation Minister, Princess Stella Oduah on behalf of the Federal Government, the government should bear the financial burden and not FAAN.
Recalled that the funds were taken from China in 2012 for the construction of five new terminals in the country by the government.
The union tasked Sirika to emulate President Muhammadu Buhari’s directive to the minister of Niger Delta Development Council (NDDC) to conduct a forensic audit, not only in FAAN, but in all the parastatals under his supervision.
The union insisted that until the minister carried out forensic audit, financial leakages, due to conspiracy to cut corners, which had deprived FAAN and government from the expected huge revenue loss from the Internal Generated Revenue (IGR) would continue to strive within the system unabated.
ANAP, who condemned the Bi-Courtney’s Murtala Muhammed Airport Two (MMA2) BOT agreements with the government, also frowned at the manner in which FAAN’s Guest House located at Ikeja Government Reserved Area (GRA) in Lagos was sold.
The union also questioned the business deals involving 30-year agreement with Momentum Hospitality, Seymor Car Park Multi-storey car park contract, rail project in Abuja Airport and Legend Hotel Building at MMIA amongst others.
On concession, the union said that it could be on leasing, BOT, or rent but most important, such deals must be favourable and transparent to all and sundry.
“We are aware of the following, being under concession or BOT: land, office, shop rents, but questions as to where their agreements are yet to be answered. For example, all lands occupied by the former Nigeria Airways nationwide since liquidation was occupied by property buyers, their land rent fees were not paid and have not been paid till this moment. It is security risk to allow anybody, persons or companies to out rightly own land at our airports”, the union warned.
On how to resolve the debt issue, ANAP called on Sirika and the Federal Government to compel other parastatals to emulate the FAAN’s Credit Control Department and the Task Force Revenue Debts Recovery Committee (TFRDRC), which was set up recently.
According to ANAP, the task force had yielded good results as most debtors to FAAN had started settling their debts, maintaining that emulation of this by other agencies would further enhance the Internal Generated Revenues (IGRs) of other agencies.