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2.4b Car Purchase Scam: SERAP, CDHR Petition ICPC

October 27, 2008
Two human rights non-governmental organizations, the Socio-Economic Rights and Accountability Project (SERAP) and the Committee for the Defence of Human Rights (CDHR) have petitioned the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Hon. Justice Emmanuel Olayinka Ayoola asking the agency to “urgently begin a thorough and efficient investigation into allegations of corruption in the #2.4 billion car purchase scam by the leadership of the House of Representatives, and to bring to justice suspected perpetrators and recover the stolen public funds.”

In a petition dated 28 October 2008 and signed by SERAP’s Executive Director Adetokunbo Mumuni and CDHR’s President Olasupo Ojo, the organizations stated that “According to our information, the Speaker of the House of Representatives, Mr Dimeji Bankole approved the purchase of 380 units of Peugeot 407 ST Sport (auto) 2.0 litre-engine cars. The cars were said to be bought directly from Peugeot Automobile Nigeria Limited at a total cost of #2,359,486,500.00, and the contract for the purchase of the vehicle was awarded to PAN on 3 January 2008. In addition, upon the award of the contract, the Department of Finance and Supplies of the House of Representatives reportedly paid mobilization fees of #1.5 billion to PAN.” 

The organizations stated further that “the Brochure of PAN shows that a unit of the 407 ST Spot (Auto) car was valued at #6, 209, 175. However, our information reveals that PAN supplied 407 comfort 2.0 auto at a cost of #5, 100, 000 per unit, instead of the 407 ST Sport (auto) valued at #6,209, 175. The leadership of the House of Representatives has now taken delivery of the cars supplied by PAN. We are seriously concerned about the overpaid sum of #417, 486,500. As our information indicates, the actual cost of the cars supplied is #1,938,000,000 and not #2,359, 486, 500 reportedly paid to PAN.” 

“We are also concerned about the unsubstantiated claims by PAN that it unilaterally changed the brand name and prices of the vehicles supplied to the House of Representatives. This unilateral variation in itself would amount to a breach of contract. More importantly, we are seriously concerned that PAN’s claims may be an attempt to confuse and misinform the public as to the truth of the matter, and may undermine any potential investigations into the matter,” the organizations added. 
 
The organizations also said that they “are seriously concerned that the above allegations constitute grave breaches of the Corrupt Practices and Other Related Act of 2000; and the UN Convention against Corruption which Nigeria has ratified. Specifically, the UN Convention against Corruption requires states parties, including Nigeria, to promote integrity, accountability and proper management of public affairs.” 

They argued that “states parties must take measures to preserve the integrity of accounting books, records, financial statements or other documents related to public expenditure and revenue, and to prevent the falsification of such documents.  The Convention also prohibits the abuse of functions or position, and imposes clear obligations on Nigeria to investigate allegations of corruption such as the present one; prosecute suspected perpetrators and ensure return and repatriation of proceeds of corruption.” 

According to the organizations, “We are further concerned that allegations of corruption by law makers would undermine the credibility of the legislative process, and impede the ability of the House of Representatives to effectively play its Constitutional oversight role or to provide the necessary leadership in the anti-corruption fight. The allegations also amount to a grave breach of Constitutional provisions and would undermine the Constitutional role of the House of Representatives to make laws for the good and development of the country.”

“We believe that effective investigation and prosecution of the allegations of corruption in the car purchase would help to address impunity of perpetrators, which is the single most important factor for the prevalence of high level official corruption in the country. Such impunity can be interpreted as the existence of interference of politicians to protect suspected perpetrators from prosecution,” the organizations further added.

The organizations therefore asked the ICPC for the following reliefs:

•    The Commission should fully and transparently investigate the allegations of corruption in the #2.4 billion vehicle purchase by the leadership of the House of Representatives, and the claims by PAN. The Commission should investigate whether the claims by PAN amount to a cover-up.

•    The Commission should make public the findings of its investigation   
•    The Commission should ensure the recovery of any money that is the subject of corruption, and ensure that those suspected to be responsible are brought to justice.    

“Since becoming Chairman of the ICPC you have demonstrated a strong commitment and leadership to addressing the problem of corruption and impunity of perpetrators in Nigeria. You have also demonstrated in your actions a dynamic approach to the development of the ICPC, as well as creative ways of using your limited powers under the ICPC Act. We trust that you will continue in this direction by using your good offices to intervene and address the allegations raised above,” the organizations concluded.


Adetokunbo Mumuni
SERAP’s Executive Director

Olasupo Ojo
CDHR’s President
28/10/08 


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