On November 19, 2009, a Lagos–based air transport company, Caverton Helicopters, gleefully announced that it has buffered its onshore and offshore ability to operate more helicopter services.
In a story in ThisDay newspapers titled “Caverton Takes Delivery of New Aircraft,” the company was quoted as stated that it had also “taken delivery of several fixed wing aircraft committed to major operators in the oil and gas sector of the nation's economy.”
But investigations by Saharareporters revealed that the revamping of Caverton was not the product of hard work on the part of its owners. Instead, it resulted from a questionable, and possibly fraudulent, attempt to convert helicopters belonging to the Lagos State government into private commercial use – and for private corporate profit. Our investigations show that not only are the new aircraft over-priced, they may also not even be used in Lagos to the benefit of Lagosians.
In 2007, the Lagos State Security Trust Fund was established under the Lagos State Security Trust Fund Law 2007 enacted by the state assembly. The Trust Fund was established to raise money and equipment through voluntary subscriptions and donations from all interested government agencies, private organizations and individuals. The funds were then to be invested to take care of the security challenges of the entire state.
Reuben Abati, a columnist and chairman of the Guardian editorial board, is among the members of the board of the trust fund.
Obasanjo and Makanjuola
In 2008, the audited account of the Trust fund disclosed that it had generated donations from banks and individuals, including N10 million from officials of the state government.
A source within the state government tipped off Saharareporters that Caverton was advertising Lagos State Trust Fund-owned helicopters meant for the Lagos state security as its own.
Caverton is owned by a businessman, Remi Makanjuola, who also doubles as the chairman of the Board of Trustees of the Lagos Trust Fund. Several sources told us that the company is not as stellar as it is being portrayed in the latest promotional articles touting its supposed corporate success.
On the contrary, aviation sources knowledgeable about Caverton’s operations said the company has to its name only two functional helicopters, both of them old light utility helicopters, Eurocopter As-350B2. The sources revealed that none of these two helicopters is capable of going offshore. “They’re basically onshore utility machines,” said one of our sources. One of the two helicopters is yellow in color, while the second unit is navy blue. The yellow helicopter was manufactured in 1987 and the navy blue one was manufactured in 1989.
Further investigations revealed that between 2005 and 2009, Caverton brought five helicopters into Nigeria. The first helicopter was an old Agusta 109, which Mr. Makanjuola received as a gift from its suppliers in 2004 for brokering a deal in which the Nigeria Navy purchased several helicopters. “The Agusta helicopter suppliers made such a huge profit from the deal with the Nigeria Navy – which Makanjuola arranged – that they gave the man one unit of Agusta 109 helicopter, which became Caverton’s first helicopter,” said a naval officer familiar with the deal. The officer added that the suppliers had reason to show this amazing gesture of gratitude since Makanjuola had got them a transaction in which the suppliers made “one-of-a-kind-profit from the Nigeria Navy.”
However, Caverton sold the helicopter in 2007 when aviation experts advised the company that Agusta 109 helicopters are not viable as commercial service helicopters – and also largely because of its old age.
Caverton’s second helicopter was also an old 1978 Eurocopter AS-365, light blue in color. The helicopter then featured in a fraudulent deal with the Nigerian Ports Authority (NPA) and the Nigeria Maritime Administration and Safety Agency (NIMASA). That deal, authorized by the former NPA chairman, Mr. Olabode George (currently serving a two-year jail term for corruption), provided that the helicopter was to be used to patrol Nigeria’s waterways. The contract fetched Caverton N12 million per day and was to run for several years. “It was a scam, pure and simple,” said a source in the NPA. “The so-called helicopter was not functional, but Chief Bode George made sure the company was paid for work that was never done.”
By mid-2008, when huge payments were still being made to Caverton ostensibly for “NPA/NIMASA inspection flights,” Caverton had quietly sold and shipped out the AS-365 helicopter with which the contract was secured. In effect, the company had no AS-365 helicopter anywhere in Nigeria, but the N12 million per day contract went on unhindered.
Caverton’s third helicopter was, like the second one, another very old 1981 model AS-365, red in color. It nearly killed the governor of Bayelsa state in 2007 when, flown for Caverton by one Captain John Omesili, the helicopter could not lift off over an electric pole due to weak engine output. In 2008, this helicopter was scrapped and shipped out of Nigeria.
Caverton’s fourth helicopter was a navy blue 1989 Eurocopter AS-350B2. One of the two helicopters currently operated by Caverton, the machine has been used in flying cash for banks around Port Harcourt as well as for VIP transportation around Lagos. The other functional Caverton helicopter is a 1987 yellow Eurocopter AS-350B2.
Our investigations further revealed that Caverton also owns a 1974 model Twin Hooter, fix-wing airplane – not a helicopter. It is an obsolete airplane that Caverton picked up when Aero Contractors discarded it in 2007.
Saharareporters investigations revealed that the Bell 412EP Caverton is advertising as its own is one of the two helicopters the Lagos State government purchased through the Lagos State Trust Fund to fight crime in the state.
In telephone calls made to a Florida–based company, Africair Inc., we discovered that the Lagos State Security Trust Fund had ordered two helicopters, which were supplied, shipped and re-assembled in Lagos. One of the helicopters is ready to fly while the second will be fully assembled early next week.
When Saharareporters reached the Africa rep. of Africair, Mr. Robert Prentice, in Nairobi, Kenya he confirmed to our reporter that his company had completed the supply of the helicopters to the Lagos State Security Trust Fund. Prodded as to why Caverton is claiming ownership of the equipment, he admitted that the state has a deal with Caverton to operate the helicopters. A source told Saharareporters that the helicopters were purchased for $12 million each, but Mr. Prentice said the figure was exaggerated. He would not disclose the actual cost to Saharareporters.
Caverton helicopters are chartered at a cost of N7.5 million per day by customers in the Nigeria’s oil and gas industries as well as clients who use it for VIP transportation purposes.
A source within the Lagos State government said the company’s misleading advertising “was very disturbing.” He added, “I am also troubled that helicopters that have been bought from a trust fund, and for the purpose of combating crime in Lagos, are now said to be stationed in Warri and Port Harcourt.”
No official of the Lagos State government commented on record on this matter.