Med-View Airline and the National Hajj Commission of Nigeria (NAHCON) are logged in a disagreement following allegation of breach of contract the airline levelled against the commission
The disagreement revolves around airlift of pilgrims to Saudi Arabia for the 2019 hajj as the airline alleged that NAHCON, through its acting chairman, Mr. Abdullahi Mukhtar, frustrated it from continuing with the exercise.
Med-View described NAHCON’s action as “economic sabotage.”
It alleged that the acting chairman attempted to compel it to partner with a Saudi Arabian carrier, Flynas despite its partnership with another Nigerian airline, Max Air, which is also participating in the exercise.
In an interview with NewsGazette, the solicitor to Med-View, Mr. Debo Adeleke, said Med-View made a down payment of $8,897,663.63 as the total contractual sum for the airlift of 5, 720 pilgrims on May 20, 2019 with First Bank as the guarantor.
According to him, the contractual agreement stipulated that on execution of the contract, NAHCON was to make 50 per cent payment ($4,448,831.08) to the airline to enable it conclude all the necessary arrangements for the commencement of the hajj operations.
However, he said instead of the 50 per cent, the commission made available only 25 per cent payment on July 15, 2019, five days into the exercise.
According to him, Med-View was given $2,412,539.
Before the airline was disallowed from continuing with the outbound exercise, NAHCOM stated on its website that the airline had already airlifted 4,383 pilgrims in five days.
A letter dated July 5, 2019, and signed by chief executive officer of the airline, Mr. Muneer Bankole and addressed to the acting chairman NAHCON, demanded for payment of $900,000 to be made available to General Authority of Civil Aviation (GACA) and TAIBA, $400,000 and $500, 000, respectively.
The letter with the head: ‘Demand note for Payment to GACA and TAIBA,’ reads in part: “As a result of exigency with regard to preparation for 2019 hajj airlift exercise, we wrote to request for payment of the sum of $900,000 to GACA and TAIBAH as analysed below: (i) GACA – $400,000 and (ii) TAIBAH – $500, 000.”
Besides, another letter marked MCILC/STFGN/NCBTAAB/01/19, dated August 5, 2019 and addressed to the vice president, Federal Republic of Nigeria, chief of staff to the president and secretary to the federal government of Nigeria, accused NAHCON acting chairman of malice against the carrier.
The document claimed that the entire 100 per cent was to be returned to the airline in four tranches; 50, 30, 10 and another 10 per cent, but as of August 5, the agreement was not redeemed by NAHCON.
The report added: “A sum of 35 per cent of the contract sum is payable on the positioning of aircraft by our client for the commencement of the hajj operation and completion of all agreements for the outbound flights, while 10 per cent of the contract sum is meant for the inbound.
“Sir, it is highly unfortunate and agonising that while our client had meticulously, sincerely and religiously kept to the terms and spirit of the agreement between parties, the acting chairman of NAHCON, failed, refused and neglected to honour the terms and spirit of the said agreement.
“To salvage the ugly situation, a resolute was reached amongst parties on the 24th July, 2019 whereby amongst other things, the commission was mandated to pay both 50 and 35 per cent contract sum to our client.”
The solicitor insisted that rather than allow Med-View to continue with the hajj exercise with its contractual agreement with Max Air, Mukhtar wanted to compel Med-View to put some of its pilgrims on Flynas, a Saudi Arabia’s airline, which it alleged the NAHCON boss had an interest in.
The airline demanded for the payment of the remaining 35 per cent, which it said was already due and 10 per cent of the contract sum in readiness of the return of the pilgrims.
In another petition to the acting chairman, NAHCON dated August 16, 2019 and copied the Vice President, Chief of Staff to the President, Secretary to the Federal Government of Nigeria and First Bank, the solicitor to Med-View said the letter written by NAHCON, stating that it had paid the sum of $5,576,582.50, representing 63 per cent of the total contract of $8,897,663.63 was incorrect.
The airline said it received of $5,576,550.5, but insisted that it airlifted 6,443 at the total value of $10,007,550.00.
It added that the amount paid by the airline does not amount to 63 per cent as claimed by NAHCON.
He said Flynas, a foreign carrier was “selfishly imposed on our client against the indigenous airline in the name of Max Airline,” stressing that the idea of forcing a foreign airline on the carrier was an act of economic sabotage and “a clear negation of the extant Federal Government policies.”
NewsGazette could not get an official response from NAHCON but a staff of the commission who spoke on condition of anonymity said the exercise was marred with “personal interests.”
He said NAHCON erred by removing the airline from continuing with the inbound flights, said that it was not the duty of NAHCON to compel a carrier to partner with any other airline, especially when such had been approved by the commission.
“I don’t want to comment much on this because I am not the official spokesman of this commission, but something is clear, the exercise is marred with personal interests. It is not the job of NAHCON to compel an airline to partner with any other carrier. Once you have received the nod to participate, what concerns NAHCON is the airlifting of the pilgrims,” he said.
