Iyabo Obasanjo

A contract for the rehabilitation of about 14 University Teaching Hospital in Nigeria valued at about €162 million awarded to a company linked with Senator Iyabo Obasanjo, daughter of former President Olusegun Obasanjo is now under probe by the Nigeria’s Senate.

The Senate Committee on Health has already started interrogation of top officials of VAMED Engineering said to be the beneficiary of the lucrative contract while Senator Obasanjo has been asked to step down as Chairman of the Committee to allow for smooth investigation of the contract awarded by President Obasanjo in 2002 and 2006.

The contracts, top officials of the Ministry told the Committee two weeks ago at a meeting in Abuja , had been fully paid for, but the company had not completed the job.

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The contract for the rehabilitation of eight university teaching hospitals in 2002, awarded to VAMED through sole bidding, was for €95 million in respect of Lagos, Ibadan, Maiduguri, Port Harcourt, Enugu, Ilorin, Zaria and Jos.

The Committee is also monitoring the ongoing process of award of a fresh N8.5 billion contract by the Ministry for the upgrade of 12 Federal Medical Centres (FMC) in the country.

The Committee, at the meeting presided over by its Vice-Chairman, Senator Gyang Dantong, was told by a Health Ministry official that VAMED had completed work on six of the hospitals, with the University of Ilorin Teaching Hospital and University of Jos Teaching Hospital remaining.

It was also alleged that VAMED used its contact with the powers that be at the time, to get another contract for the sum of 67 million euro through sole bidding in 2006 for the upgrading and rehabilitation of six other university teaching hospitals located in Calabar, Benin, Ife, Sokoto, Kano and Nnewi. Works on any of the six projects are far from completion . 

It has not completed rehabilitation of any of the hospitals.

Some non-for -profit organization had sent a petition to the National Assembly, alleging a breach of due process.
The Committee was informed at the session that VAMED was kicking against the decision by the Health Ministry to award the contract for the upgrade of the 12 FMCs through a competitive bidding.

According to information at the disposal of the Senate Committee, there was a subsisting agreement between the company and the Federal Government in respect of the FMC modernization project, which was why the project was included in the 2008 budget that had been approved by the Presidency.

The opening of the bids last Thursday, in Abuja, was boycotted by VAMED, which instead lodged a formal petition with the Ministry.

The competitive bidding, the Senate Committee had been told when the Health Ministry officials appeared before it two weeks ago, was consistent with the provisions of the Public Procurement Act and due process.

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A member of the Committee, Senator Anthony Manzo, also said weekend that the Committee would invite the management of the company to appear before it when the Senate resumes next month to present its case.

According to Manzo, “We have heard from the Ministry officials; they have explained all the issues involved to us and we are going to hear from VAMED Engineering Limited as the Committee wants to be fair to all parties.”

Feelers in the Senate circles are that the company is mounting pressure on top officials of the Ministry of Health who are new in their positions, following the recent leadership change in the ministry, to keep to the terms of the contracts which it (the company) got through sole bidding under the Obasanjo administration.

But the officials, as learnt, are insisting on strict adherence to due process and have already gone ahead to subject the N8.5 billion FMC modernization project which VAMED claims should have been given to it without any bidding, to competitive bidding involving 19 companies.

 

 

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