NIGERIA MASTERWEB DAILY NEWS - Publish Yourself :: FAAN Revenue Collection Concession Controversies

26/02/10

FAAN Revenue Collection Concession Controversies - Categories: News, Nigerian News - lateef lawal @ 12:01:07 am

*Nigeria: FAAN Revenue Collection Concession Controversies

[ FAAN Demand N293 million Refund from Maevis ]

By Lateef Lawal

The raging controversies over the concessioning agreement on revenue collection between the Federal Airports Authority of Nigeria(FAAN) and Maevis Nigeria Limited is getting murkier on a daily basis, since the beginning of this month when the media reported the later as complaining about some stumbling blocks within FAAN. The Commercial Department of FAAN was accused of giving waivers to some concessionaires running into several billion naira, against the terms of agreement on revenue/debt collection.

Labour unions in the industry, especially Air Transport Services Senior Staff Association of Nigeria(ATSSSAN), National Union of Air Transport Employees(NUATE) and Nigeria Union of Pensioners(NUP) are crying foul over the issue and have given both FAAN and Maevis February 28, 2010 ultimatum to present facts before they decide the next line of action.

At a close door meeting with FAAN management, leaders of the unions told FAAN that though they have not all along being supportive of the concession of major revenue points to contractors, there were grey areas they discovered in the agreement entered with Maevis. The union leaders said such areas included the omission of penalty in case of default by either party, especially when revenue expected to be remitted to FAAN are not forthcoming when due. ( Continues below….. )

FAAN logo On A Nigerian Map in Nigerian Flag Colours

Photo Above: FAAN logo On A Nigerian Map in Nigerian Flag Colours

Investigations revealed that at the height of buck passing, a meeting was held between FAAN and Maevis representatives on February 10, 2010. The meeting summoned at FAAN Board Room by FAAN Board of Directors, was in respect of the controversies generated over the agreement between FAAN and Maevis on October 31, 2007.

At the said meeting, FAAN pointed out the urgent need to review the agreement due to lots of inconsistencies in it, especially the “Definition Clause” and the clause regarding “Management Fee and Enhancement Fee". FAAN demanded from Maevis, a refund of N293,124,645.44 paid in error as enhancement fee. They said the error emanated from misinterpretation of the clauses in question. ( Continues below….. )

Map of Nigeria

In addition, it was learnt Maevis was requested to refund the 10 per cent statutory deduction due to Nigerian Meteorological Agency(NIMET) for landing, which is obviously not part of the revenue of FAAN. Other questionable areas raised by FAAN during the meeting include:

*The training of FAAN staff as earlier agreed to acquaint them with the workings of the technology deployed by Maevis which has not materialized two years after the signing of the agreement.

*The Payment Platform.

*The need to have a performance based revenue enhancement fee and the need to have a service agreement that is measurable and other issues surrounding the Concession.

At the meeting and in response to the issues raised by FAAN, it was gathered that Maevis noted that the agreement provided a leeway for amendment and that the company was not against amendments where, it is absolutely necessary.

The National President of ATSSSAN, Comrade Ben Okewu and the Secretary General of NUATE, Comrade Simeon Ogbuji while reacting to the latest development and the outcome of the meeting held with FAAN, said they stood by the February, 28 ultimatum given to both parties. They said they would never tolerate a situation where revenue due to FAAN are not collected, short-changed or diverted in whatever guise. They argued such would eventually affect prompt payment of workers salaries and execution of developmental projects.

In an interview, Maevis Managing Director said his company had performed better than when FAAN staff were in charge of revenue collection. He said that where FAAN workers used to collect N6 billion, his company within a year raised bills for N16 billion and had been able to collect and remit N14 billion into FAAN account.

Lateef Lawal (NigerianAviationNews)

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Map of Nigeria

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