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The House of Representatives has thwarted plans to convert the N50 billion bailout extended by the Federal Government to airlines into an intervention fund. The move, part of the ongoing investigative hearings into the alleged misappropriation of multi-billion naira COVID-19 intervention funds by various Ministries, Departments, and Agencies (MDAs) since 2020, was disrupted by the House Committee on Public Accounts, chaired by Hon. Bamidele Salam.
Expressing concern over the matter, the Committee, during the resumed investigative hearing, decided to summon the immediate past Permanent Secretary and Director of Finance of the Federal Ministry of Aviation for questioning on Wednesday, January 24, 2024. The committee sought detailed explanations for the utilization of the N5 billion disbursed to the Ministry in 2020 to mitigate the impact of the COVID-19 pandemic.
Under scrutiny were 58 airlines and service providers who benefited from the N4 billion COVID-19 intervention fund during the period in question. Lawmakers raised questions about the allocation of N70.7 million to the Federal Airport Authority of Nigeria (FAAN) through the Federal Ministry of Aviation, in addition to other funds directly accessed from the Federal Government.
A letter dated June 21, 2020, from the Ministry, presented to the Committee, indicated that the Permanent Secretary urgently sought the release of N24 billion to enable airlines to meet four months' salary and overhead costs with a minimum interest rate.
Expressing concerns about the bailout, Hon. Salam and fellow lawmakers insisted that the funds must be repaid into the Federation Account. They questioned whether the airlines were providing free tickets to customers, emphasizing that all beneficiaries of the COVID-19 intervention fund, including homes, schools, and businesses, have started repaying the funds to the government. The lawmakers asserted that the N50 billion allocated to airlines should not be exempt from repayment.
