Contracts Awarded by Ex-NHIA Boss Bypassed Procurement Process, Witness Tells Cour
A prosecution witness in the trial of former Executive Secretary of the National Health Insurance Authority (NHIA), Professor Usman Yusuf, on Thursday told the Federal Capital Territory High Court in Kuje, Abuja, that a vehicle supply contract awarded under Yusuf’s leadership did not follow due procurement procedures.
The witness, James Balami, Director of Procurement at the NHIA, testified before Justice Chinyere E. Nwecheonwu that the contract awarded to Lubekh Nigeria Ltd was handled outside the Authority’s procurement department.
Balami, who appeared as the second prosecution witness (PW2), said the company was owned by Kabiru Yusuf Yar’adua, whom he identified as a brother to the defendant.
Led in evidence by prosecution counsel, Francis Usani, the witness said the Economic and Financial Crimes Commission (EFCC) had requested information from the NHIA concerning three companies — Lubekh Nigeria Ltd, Zaramat Global Company Ltd, and GK Kanki Foundation.
“Kabiru Yusuf Yar’adua is a businessman and owner of Lubekh company and a brother to the defendant, Professor Yusuf, who was the then chief executive,” Balami told the court.
He said Lubekh Nigeria Ltd submitted documents for the award of contracts and was eventually approved by the NHIA Tenders Board after being found responsive both technically and financially.
Although he could not recall the exact value of the contract, Balami said one of the transactions involved about N9 million.
The witness, however, maintained that the procurement department was sidelined in the process.
“It emanated from the Human Resources to the Chief Executive Officer and Accounting Officer, Professor Yusuf as at that time. So, it did not go through procurement and by implication it did not go through procurement process,” he said.
Balami further alleged that Hassan Khalifa Yusuf, whom he described as the nephew of the defendant and son of the owner of Lubekh Nigeria Ltd, participated in evaluating the contract awarded to the company.
“Hassan Khalifa Yusuf is the son of the owner of Lubekh Nig Ltd,” he said.
The witness also told the court that multiple petitions were filed against Yusuf during his tenure, accusing him of maladministration and procurement violations.
According to him, the petitions were sent to the EFCC, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Federal Ministry of Health, and the Presidency.
“There were a series of petitions against Professor Yusuf, the defendant, and some of the petitions were addressed to the EFCC, ICPC, Federal Ministry of Health, as well as to the Presidency, bordering on maladministration and procurement breaches,” he said.
Balami added that both ministerial and presidential investigative panels were set up to examine the allegations.
During proceedings, defence counsel O.I. Habeeb, SAN, objected to the witness giving oral evidence concerning the petitions and investigative panels, arguing that the evidence was irrelevant.
Justice Nwecheonwu overruled the objection, stating: “I don’t think he has exceeded his boundaries.”
Under cross-examination, the witness said Exhibit B before the court reflected N80 million earmarked for Prado Sport Utility Vehicles, comprising N30 million in 2015 and N50 million in 2016.
He clarified that the exhibit was only a schedule of contracts considered and approved by the Tenders Board and did not constitute an appropriation or approved budget.
Balami further told the court that based on Exhibit B, the Tenders Board lacked the authority to approve the contract award.
