EFCC to Investigate NigComSat N14.854b Allocations

The Steve Oronsaye Committee on streamlining of
federal government parastatals said in its report
that "although the NIGCOMSAT is an incorporated
entity, the company receives full funding from
government to the whopping sum of N6. 318 billion
in 2010 and N8.536 billion in 2011, totalling
N14.854 Billion for the two years without
corresponding delivery of its services and
accountability.
Consequently, Aso Rock it was gathered has
forwarded the report to the Economic and Financial
Crimes Commission (EFCC) for investigation. A top
source in the Commission who wished to remain
anonymous disclosed this to our Correspondent in
Abuja at the weekend.
It was gathered that, the anti-sleaze agency
secretly received Oronsaye report two weeks ago
from the Presidency with an order to carry out
"clandestine and careful investigation."
The Steve Oronsaye Committee on streamlining of
federal government parastatals said in its report
that "although the NIGCOMSAT is an incorporated
entity, it (the committee) observed that the
company receives full funding from government."
According to the committee, the organisation
received N6. 318 billion in 2010 and N8.536 billion
in 2011. It has continued to be budgeted for ever
since.
"With this development, the nation's space
programme is now in jeopardy, owing to power
play which has consumed the Nigerian
Communications Satellite Limited, NIGCOMSAT
Limited, from its parent body, the National Space
Research and Development Agency (NASRDA)," a
top EFCC source revealed to our correspondent.
The source stressed that the loan that was used in
building the ill-fated NigComSat-1 which developed
problems in orbit is yet to be repaid with the
interest piling up even as the Chinese had replaced
the object with NigGComSat 111. Top officials of
the agency were reluctant to speak with news men
on the matter as whoever  volunteered information
preferred anonymity because of the sensitive
nature of the matter.
However, as the rivalry peaks, NIGCOMSAT is
currently in the process of transforming itself from
its original status as a private limited company to
market the nation's first satellite, NIGCOMSAT 1,
bandwidth, into another space agency. The Bill for
the establishment of the Nigerian Communications
Satellite Corporation is currently before the
National Assembly.
NASRDA was established as a federal government
agency in 2010 to build capacity in space
technology development and management thereby
strengthening human capital development required
for the implementation of Nigeria's space
programmes.
It was, thus, mandated to build satellite technology
in Nigeria for various applications and
operationalise indigenous space systems to
provide space services, build and launch the
nation's satellites and to promote the coordination
of space application programmes, for the purpose
of optimising resources and to develop space
technologies of direct relevance to the nation's
socio-economic development objectives.
With the successful launching of NIGCOMSAT 1
into orbit, NASRDA established NIGCOMSAT Ltd
as a Special Purpose Vehicle, SPV, to market
NIGCOMSAT 1.  It was meant to be a commercial
arm of NASRDA since the agency could go into
commercial activities being a purely government
body operating under the Federal Ministry of
Science and Technology.
According to the Memorandum and Articles of
Association, NIGCOMSAT was established in 2006
as limited liability company with a Share capital of
N10 million, with NASRDA holding the majority
stake of N7 million. There were five shareholders
in all, representing various space research
centres.
NASRDA was represented by its then Director-
General Prof. Robert Ajayi Boroffice, who signed for
N4 million and Mr. Timasaniyu Ahmed Rufai who
was the NICOMSAT -1 Project Manager singned
for N3 million on behalf of Centre for Satellite
Technology Development, the unit of NASRDA
directly responsible for the satellite.
The other three centres were: National Centre for
Remote Sensing, represented by its Director, Mr.
Jerome Adekunle Ologun, N1 million; Centre for
Basic Space Science represented by its Director,
Prof. Pius Nwankwo Okeke, N 1 million; and Centre
for Geodesy and Geodynamics represented by its
Director, Dr. Joseph Akinyede, N1 million.
According to the memorandum of Association,
NIGCOMSAT was established "to acquire and
take-over the management, property, rights,
privileges , assets and liabilities of the Nigerian
Communications Satellite Project, NICOMSAT-1.
It was also "to carry on business for profit and
pursuant thereto, to set up, establish, work,
operate, manage and maintain in-orbit
communications satellites.".
Upon the successful incorporation of NICOMSAT,
Ahmed Rufai, then an Assistant Director at
NASRDA was made its Managing Director. Shortly
thereafter, the relationship between Rufai and his
bosses at NASRDA, nosedived and did not improve
until Prof. Boroffice left office as the Director
General of the agency.
Prof. Boroffice was succeeded by Dr. Seidu
Mohammed but the relationship between
NICOMSAT and its parent body was yet to
improve.
With the mandate to market the bandwidth of the
first satellite, NIGCOMSAT 1, which later developed
some problems and de-orbited,  NIGCOMSAT's
mandate was said to have lapsed and therefore
should have reverted to its parent agency,
NASRDA; but by then, it had acquired its own life.
The first step towards its autonomy from NASRDA
was its removal from the Ministry of Science and
Technology to the Federal Ministry of
Communications which was orchestrated by high
level lobby.
As learnt there have been a series of
correspondences on the matter at the highest level
as NASRDA was said to have sought the
interpretation of the Solicitor-General, to the
mandates of the two organisations but
NIGCOMSAT reportedly remained adamant even
when it was told that it cannot function as a
separate government agency.
In accordance with the 25-year Space Road Map of
NASRDA approved by the Federal Executive
Council in 2005, the agency developed local
capacity through the Know How Technology
Transfer, KHTT, on Nigeria Sat-1, NigComSar-1,
NigeriaSat2 and NigeriaSat-X satellites.
No fewer than 90 engineers and scientists were
said to have been trained under this programme
out of which those trained on NigComSat-1 were
deployed to NigComSat ltd. Twenty five of the
scientists and engineers would have been
redeployed to NASRDA but NIGCOMSAT ltd
reportedly refused to let them go.
It was planned that after the launch of
NigComSat1R in December 2011, NASRDA would
take over NigComSat Abuja Ground Control Station,
Kashi Satellite Ground station, and NigComSat-1R
spacecraft, but NIGCOMSAT Ltd which hitherto
operated on the same premises has cordoned–off
its section on the premises. It also erected a
fence around the Ground Station, making it
impossible for NASRDA engineers to gain access
into the station.
Meanwhile NIGCOMSAT Ltd, it was learnt has not
been remitting revenue into the treasury, as a
profit organization is expected to. The organization
was expected to generate revenue from which the
$200 million loan from China EXIM Bank could be
repaid. Investigations showed that there is no
evidence that the loan is being serviced. Instead,
NICOMSAT Ltd has been drawing public funds for
its activities.
Informed sources said that the Federal
Government space programme would be
completely messed up should the National
Assembly go ahead to give legal backing to the
attempt to duplicate the space centre in the
country.
The former Managing Director of NICOMSAT Ltd,
Timasaniyu Rufai could not be reached for his
comments but one of those close to him who
spoke on the condition of anonymity explained that
the issue of duplication does not arise between the
two organizations.
According to him, the ownership of NICOMSAT ltd
had since changed and that the organization was
now wholly owned by Ministry of Finance
Incorporated.
He said that NIGCOMSAT Ltd had to be allocated
public funds through the budget at a period it had
no product to sell but that the organization made
remittances into government coffers between 2007
and 2008, although he could not say how much.
The official further said that with the re-launch of
NigComSat III last year, the organization started
business on March 19, this year pointing out that it
is too early for anyone to accuse it of not remitting
proceeds to government since the year had not
ended.