The Lagos State House of Assembly Tuesday approved the sum of N555 million for the purchase of 200 customised and branded operational vehicles for the Lagos State Transport Management Authority (LASTMA) and Kick Against Indiscipline (KAI).
The sum is 50 per cent of the total cost of purchase for 140 units of customised Kia Rio (100 for LASTMA and 40 for KAI) and 60 Mistubishi vehicles for KAI.
In line with the Appropriation law of 2014, which demands that State expenditure more than N200m must get approval of the House, the State Commissioner for Budget and Economic Planning, Ben Akabueze had requested approval of N555 milio from Special Expenditure Vote.
The letter, read on the floor, is dated February 24, 2014.
Entertaining the motion, Speaker of the House, Adeyemi Ikuforiji said the vehicles were important to effective functioning of the agencies, adding that the purchase was time-bound.
Ikuforiji said given the Federal Government’s new Automotive Policy, prices of vehicles are bound to go up in a matter of days, “hence the need to act quickly.”
Following the consensus of the House, the Speaker ruled on the approval of the sum of N555 million for the vehicles.
House Committee Chairman on Appropriation, Mudasiru Obasa, added that there was the need to have heads of the units (LASTMA and KAI) visit the House to explain their activities and rationale for the use of new vehicles.