The House at its plenary session on Wednesday, 14 March 2018 mandated its Committee on Federal Capital Territory to conduct an extensive audit on all contract agreements entered into on behalf of the Federal Capital Territory Administration (FCTA) through the Abuja Investment Company Limited (AICL) and its subsidiaries or affiliates in view of ascertaining the actual revenue accruable to the FCTA from the contracts and remittances made to date. It is also to reveal any losses from such contracts where applicable.
Presenting the motion on the floor of the House, Hon. Prestige Ossy (APGA: Abia) noted that the Federal Capital Territory Administration (FCTA) wholly owned the AICL as part of its mandate to build capacity in Public Private Partnership Administration and Asset Management for sustainable development. He enumerated that the AICL was incorporated in 1994 as an Abuja Investment and Property Development Company (AIPDC) in charge of overseeing Abuja Markets Management Limited, Abuja Urban Mass Transport Company Limited, Abuja Property and Development Limited, Abuja Technology Village, and Abuja Film Village International respectively.
Speaking further, Hon. Ossy explained that the FCTA controlled various stakes in affiliates of the Abuja Investment Company Limited such as the Abuja Leasing Company Limited, Abuja Connect Limited, Power North AICL Equipment Leasing Limited, Abuja Power Company Limited, Aso Properties and Investment Management Limited, Aso Savings and Loans Limited, among others. However, due to the failure of some of AICL’s subsidiaries like the Abuja Markets Limited to adhere to due process, the AICL was compelled to sign a Facility Management Agreement; which has been consistently disregarded as well, to the detriment of the Federal Government. For instance, in his view, the Forty Million Naira (N40, 000, 000) given monthly to the Abuja Urban Mass Transport Company Limited to augment its operation was unnecessary if the organisation was efficiently managed.
Lastly, he expressed concern that despite the huge capital invested by the Federal Government to establish the Abuja Investment Company Limited, its subsidiaries and affiliates had become a source of fraud and avenue for revenue leakage running into billions of Naira. He stated that despite efforts of AICL’s new management to sanitize the activities of its subsidiaries, laid down agreements continued to be blatantly disregarded. Hon. Ossy’s further request urging the House to investigate this alleged abuse of due process from the period of 2007-2017 was also adopted in the House resolution.
