Inside Story Of Nigerian Peugeot Car Storm

The storm barely blown over, but CHRONICLE investigations have established details of the acquisition of 50 Peugeot cars acquired for the Ghana Police Force by the President but which generated uproar of disapproval in Parliament, on the strength of an alleged storm in the Nigerian National Assembly.

A systematic tracking of what was cast as a scandal rather reveals a desperate effort by President Kufuor to help equip the chronically under-resourced Security Service on which national stability hinges in the background of an empty treasury.


There was no storm at all in the Nigerian National Assembly, neither in the senate nor the House of Representatives. Days of poring over the official record of proceedings at the House’s library, Printing rooms, through to the Office of Bills and Records, including the Hansard (the official record of proceedings), for specific evidence of the exact nature and context of the alleged complaint yielded no such record.


The scouring scanned the period of February through to the beginning of April and included order papers, motions and petitions. The Nigerian President had reportedly been carpeted for allegedly giving a loan to Ghana without clearing first with the House.


Last Tuesday, the truth was finally revealed as this reporter pumped the local press corps for clues. “Oh, nothing like that happened in the House,” emphasized two Parliamentary Correspondents.” What happened was that a member of the House opposed to Obasanjo and familiar with the transaction leaked it to three newspaper reporters - The Tribune, The Vanguard and The Daily Trust. The names of the reporters were even supplied.


“There is a lot of political manipulation here, my brother, and people always seek for ways to hit one another,” cautioned one reporter near the press gallery of the House in the company of two other journalists.”

“You see, I have never been absent from Parliament in the last five months and I would have heard it if it happened, that is why I told you that I am not sure that it happened,” said another from Voice of Nigeria.


Senator Mantur, the politically powerful and highly respected Deputy Speaker of the ECOWAS Parliament, appeared perplexed when the issue came up in a chat with this reporter and another ECOWAS MP.


He was of the opinion that the other 50 cars would be forthcoming, and wondered why President Obasanjo should have any problem when his party has majority in both Houses - The Senate and the House of Reps. What actually happened was that President Kufuor virtually pleaded with General Olusegun Obsanjo for urgent assistance with automobiles for the Ghana Security Services.


Between Ghanaian officials led by the former Minister of Interior and the Minister of State for Finance (Deputy Director of Finance) Senator (Dr.) Jibril Martins-Kuye, they were directed to approach Peugeot Automoble of Nigeria (PAN), which assembles the popular marque at their plant in Kaduna, Northern Nigeria.


A considerable discount was secured for Ghana under the bilateral deal; yet, the Ghanaian side could not come up with a single dollar as a deposit for the transaction.

When President Obasanjo was later briefed that the Ghanaians could not come up with a dime, he was still anxious to assist as it had been clearly indicated to him by JAK personally that it was a desperate situation.


Hon. Martins-Kuye explored a financing arrangement where Ghana could be given the cars while a sort of hire purchase arrangement could be agreed upon with a French Finance house. But even that needed meeting underwriting criteria and posting a guarantee. Sadly, even that could not be executed.


Obasanjo had already given his word, so the last and final option was to guarantee payment to PAN for the sum of some $1 million, give Ghana a one year moratorium, and ask that the Government repay the full amount in four equal installments semi-annually over the next two years.


Hon. Jibril Martins Kuye signed on behalf of the Nigerian Government, and the papers were given to the Ghana High Commissioner in Nigeria, Ms. Nana Kumi, to effect the signing. The row in Ghana is that it still required Parliamentary approval,” pushed this reporter to a senior official who insisted that he should not be quoted.


“I do not know how advanced Ghana is with her democracy, over here we are just beginning. No one has complained to us that there is a problem. If we are told, we will simply say, Oh it was a mistake, we are always learning and we will not do that again. That’s all.”

Then in an off the record remark, he added, “My friend, what is this? What is wrong with a fellow African country helping the other when we have put up $500 million through the African Development Bank window for example ?” A very senior official also at the Federal Ministry of Finance, Directorate of African and Bilateral Economic Relations (ABER), was authorized to give this reporter a copy of the agreement to have sight of it “since you appear to be a gentleman anxious to know the truth.


“There is no ‘mago mago’ at all in this and you will not find anything different from what we have told you.” Mr. Salami, the Export Manager of PAN, told the Chronicle in a follow-up interview in Kaduna that the Ghana - Nigeria transaction was purely a bilateral arrangement. No, he was not even involved. He explained that PAN is owned 45 per cent by the Federal Government, and another 15 percent is owned by the Ministry of Finance and NDPC finance, a Government Finance House, with the other 40 percent held by private people. The Nigerian Minister yesterday flew into Ghana.


“Government has a huge car pool and they regularly take what they want and record it.” At the moment, they have no agent in Ghana.


Chronicle gathers that the official agent of Peugeot was SCOA which was taken over and bastardized by a company which had Messrs Geddy Laryea, Ken Ofori-Atta and two others as shareholder/directors.


After selling the assets of the company, including some choice land belonging to the company, all the directors parachuted out, contrary to promises they made to the Stock Exchange before taking over SCOA.

Mr. Frank Gadzekpo, the then Managing Director who had just succeeded Mr. Nich Edi Darko, was hauled to court by institutions and individuals, like Hon. Ibrahim Adam, for not delivering vehicles they had paid for before going bust. “I am going to Ghana next week to scout for agents,” Salami hinted this reporter, who promptly took him up on the offer. What is certain is that, expectations of another set of 50 cars is a mirage.


“This was a one time deal,” declared the official, “If Ghana reneges on payment, it is alright, it would become a sovereign debt for Nigeria”.


It would be recalled that President Kufuor was so hurt about the storm that blew over the matter when he was going over such agonizing length to help, and moaned publicly about the failure of his Communications outfit headed by Mr. Jake Obetsebi Lamptey to satisfactorily explain away the transaction to public appreciation and understanding.


Clearly, he had gone through such pain to assist his country, yet what he got was a kick in the rear end. That explains his gripe at GIMPA last month in his meeting with his Ministers.