House Grills FAAN MD over Unremitted N63.6bn

The House of Representatives on Tuesday grilled the Managing Director of the Federal Airport Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, over discrepancies in  the agency's revenue  remittances to the federal government worth N63.6 billion between 2014 and 2019.

The Chairman of the House Committee on Finance, Hon. James Faleke, at the investigative hearing held in Abuja, said his committee was not out to witch-hunt any agency, but to ensure that whatever money that is due to the federal government is remitted by respective agency. 

The Committee, while querying the FAAN management over the discrepancies between the internally generated revenue realised(IGR) by FAAN and the records provided by the Auditor-General of the Federation, demanded for original copies of all the receipts of payments.

The chairman of the committee expressed dismay over the level of disregard and impunity perpetuated by previous FAAN management.

He stated: “Out of the total sum of N9.48 billion expected revenue from FAAN, the agency remitted N500 million in 2014; remitted N2.15 billion out of N10.89 billion in 2015 and N1.565 billion remitted out of N11.6 billion expected revenue in 2016.”

Also, FAAN remitted total sums of N1.511 billion, N1.778 billion and N1.539 billion against N13.19 billion, N14 billion and N15.49 billion expected revenues for 2017, 2018 and 2019 fiscal years respectively.

 

Faleke added: “Out of the total sum of N74.663 billion expected revenue from FAAN between 2014 and 2019, the sum of N9 billion was remitted within the period under review.”

The committee, therefore, gave FAAN three weeks to appear again before it with relevant documents.

“Comprehensive details of contract awards from 2014 till date shows VAT deducted, withholding VAT deducted and the original treasury receipt of those remittances should be provided. 

"Your bank statement for First bank and Zenith bank and any other bank as well as management letters of the auditors of the account should be provided,” he said.

While responding, Yadudu argued that the agency cannot afford to comply with the extant financial regulations on the remittance of 25 percent operating surplus.

According to him, “We have 22 airports we are operating, and out of these 22, only three are viable. FAAN is subsidising 18 airports that are not viable to ensure that they are in operation in a safe and efficient manner.”

Yadudu stressed that relevant documents which highlight various constraints facing the agency had been submitted to the supervisory ministry for onward transmission to President Muhammadu Buhari, as well as its inability to comply with the extant financial regulations on remittance of 25 percent operating surplus.