News
NHIS’ Exec Sec In Fresh N25bn Fraud Scandal
Less than four months after his controversial reinstatement, the Executive Secretary of the National Health Insurance Scheme, Usman Yusuf is again in trouble over a N25 billion investment scam.
The newly inaugurated Governing Council of the agency has accused Mr Yusuf of misleading it to act against the policy directive of government by fraudulently obtaining its approval to invest the sum in securities.
The council also said the Executive Secretary concluded the arrangement for the investment before seeking its approval, contrary to the laws governing the scheme, and ignored key conditions it attached to the approval.
Mr. Yusuf was suspended by the Minister of Health, Isaac Adewole, in July 2017, following allegations of gross misconduct.
The minister then set up a panel to investigate the allegations. The panel reportedly indicted the Executive Secretary, following which the minister forwarded the report to the presidency.
But in February, without informing the minister, President Muhammadu Buhari reinstated Mr Yusuf into his office.
The development ignited an uproar, with a group of workers staging a protest at the agency against the return of the executive secretary.
President Buhari later summoned the minister and Mr Yusuf to a meeting at which he urged them to bury the hatchet and work together in the interest of the scheme.
Earlier in December, the president appointed a governing board for the scheme, alongside those of 208 other federal parastatals.
In February, he directed ministers to inaugurate the boards of agencies under their supervision. That directive was carried out on March 6 at the NHIS when the governing board was inaugurated with Enyantu Ifenne, a medical doctor, as chairperson.
However, much earlier in August while Mr Yusuf was still on suspension, the minister gave approval to the acting Executive Secretary of the scheme, Attahiru Ibrahim, to invest “idle funds” of the agency in federal government securities.
This was said to be in line with the National Health Insurance Act (Part IV, Section 11.4), which states that:
“The Scheme shall invest any money not immediately required by it in Federal Government Securities or in such other securities as the Council may, with the approval of the Minister, from time to time, determine.”
According to the letter of approval (HMH/ABJ/032/X/465), dated August 18, 2017, the minister wrote:
“It has come to my notice that the NHIS kept residual balance not immediately required for day-to-day operations idle in Treasury Single Account with the CBN. The Sum has accumulated over the years and has become somewhat sterilised as you continue to hold it in cash thereby leading to erosion in value due to inflationary trends which currently stands at 16.1%
“Following from above and in order to arrest this value erosion of the NHIS funds, I hereby approve as follows:
Commence effective immediately, starting with the sum of N10 Billion Naira (sic) up to the tune of N50 Billion Naira (sic) investments in Federal Government Securities at prevailing market determined yields.
Engage the services of any of the regulatory bodies certified investment counter parties; Cowry Asset Management Limited, Finmal Securities Limited or Elixir Investment Partners Limited to advise on the investment options and seamlessly execute same.
The investment actions and the expected returns should be captured in your 2017 budget estimates.
“It is my expectation that the returns on these investments will be used to fund part or all of the proposed interventions in the tertiary health institutions without depleting NHIS actual funds balances. I have taken the liberty to notify the Honourable Minister of Finance, Chairman Senate Committee on Health and Chairman House Committee on Health Services.”
However, 11 days later, the minister wrote again to the acting Executive Secretary to reverse his approval.
In the letter (HMH/ABJ/312/11/82) dated August 29, 2017, Mr Adewole wrote:
“This is to inform you that the Honourable Minister of Finance has advised against the proposal to invest NHIS residual funds in securities. The approval of such investment, she stated, will be an indirect violation of the Government’s Treasury Single Accounts (TSA) policy.
“In view of the above, the Central Bank of Nigeria (CBN) has been advised to pay Treasury Bill rates on any residual balance held in the TSA with CBN for Investment Trusts.
“You are therefore directed to stop all actions and processes on the investment of NHIS residual funds in securities with immediate effect and approach CBN to facilitate the payment of interest on residual funds.”
The later letter appeared to have put closure on the idea to invest the NHIS “idle funds”, until Mr Yusuf regained his office in February.
Documents revealed that shortly after his reinstatement, he engaged one of the certified investment firms, Cowry Asset Management Limited, as financial adviser and directed it to proceed with the investment, relying on the original letter of the minister conveying approval but ignoring the other letter withdrawing the approval.
He directed that N25 billion be invested in five tranches of five billion Naira each and to mature in 2034.
According to insiders at the NHIS, this was also in defiance of advice of officers at the agency, some of whom later decided to frustrate the process pending the inauguration of the governing board.
Following the inauguration of the Council on March 6, Mr Yusuf presented a memo to its first sitting on April 25, on the “urgent need to invest NHIS funds due to huge deficit spending, inflation, poor cash backing, debts owed the Scheme by banks and unauthorized deductions by the Office of the Accountant General of the Federation.”
He asked the council to approve that the NHIS management immediately commence the process of investing the residual funds in federal government securities and give progress report of the investment to council from time to time.
Based on the memo, the council approved the placement of N30 billion only in federal government securities “with no commission payment to a third party.”
Following the council’s resolution, Mr Yusuf on May 3 wrote Cowry Asset Management Limited to inform it that the council stated clearly that “there should be no payment of any commission to a third party” for the investment.
He, however, stated: “The Scheme will therefore engage Cowry Asset Management Ltd in a similar way it did its Forensic Auditors and retained Lawyer with initial engagement fee and any subsequent payments of fees presented for work done by your Company will be subject to the approval of the Tenders Board.”
After the approval, aghast insiders at NHIS made the council aware of the advice of the minister against the investment when the idea was initially muted in 2017.
Irked that the executive secretary had only presented to it the initial letter of the minister conveying his approval, it directed that no further action be taken on the investment.
The council also issued Mr Yusuf a query for misleading it to give approval for a course of action that is against the policy directive of government.
According to the query issued by the Chairman of the Governing Council, Mrs Ifenne, the council noted that its provisional approval was for “Management to initiate due process and submit a proposal to enable Council seek authorisation by the Honourable Minister of Health.”
Mrs Ifenne’s letter continued: “As it stands, Council attention has been drawn to new information which you failed to disclose in your earlier presentation.”
The council said Mr Yusuf withheld from it a letter from the minister which expressly stated that the Minister of Finance advised against investing NHIS funds in securities.
It also accused the executive secretary of engaging the financial adviser without stating the terms and conditions of engagement.
Other charges are that Mr Yusuf approved “wholesale” the proposal of the firm he engaged as financial adviser on the eve of the inauguration of the council, and directed a general manager of the scheme to expedite disbursement of N25 billion for long-term investment without obtaining prior approval of the Minister of Health as required under the NHIS Act.
He was also accused of engaging the investment advise on “vague and elastic terms”, and instructing an official to process the firm’s engagement without further reference to council for approval.
Stressing the council was not presented with all available information to enable informed decision-making on the matter, the chairman stated that the council believed that “non-disclosure of significant information misled it into error in decision which may compromise her standing.”
The query advised Mr Yusuf to explain in writing “the observed procedural lapses and failure to disclose critical information to Council.”
It directed him to present his explanation to council at its meeting scheduled for June 12.
That meeting, however, did not hold on that date due to other reasons and the council is yet to announce another date for the meeting.
Mr Yusuf did not respond to efforts by our correspondent to get his reaction on the matter as he refused to pick several calls or respond to a text message requesting his response.
News
Work on Eleme Road delaying fuel distribution from PH Refinery – PETROAN
The Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concern over the slow pace of work by Reynolds Construction Company (RCC) on the Eleme East-West Road project, Port Harcourt axis.
The National President of PETROAN, Dr Billy Harry, in a statement yesterday, said that the delay was happening in spite of the N33 billion said to have been released by the Federal Ministry of Works, for the project.
Harry decried the challenges the deplorable road posed, saying that it was sabotaging President Bola Tinubu’s efforts to ensure the smooth distribution of petroleum products from the renovated Port Harcourt Refinery.
“Thousands of petroleum trucks will be using the road to convey products from the renovated Port Harcourt refinery, so, further delay is detrimental.
“The Eleme East-West Road is a critical route for the transportation of petroleum products, and its safety is paramount.
“The road’s deplorable condition poses a significant risk to trucks carrying petroleum products, which could lead to catastrophic accidents and environmental disasters.
“PETROAN is calling on the President to evaluate the ongoing contract by RCC in line with the contract timeline.
“This move will consolidate his renewed hope agenda by ensuring the timely completion of the Eleme East-West Road project.”
Harry said that about 60 retail outlets were negatively impacted by the road construction, and requested adequate compensation for owners of the fuel stations.
He recalled that the Minister of Works, David Umahi, in a press conference, had also complained about the slow approach of RCC, leading to the issuance of a seven-day ultimatum by the Minister.
“Furthermore, PETROAN is calling on the Minister of Works, David Umahi, to fast-track the contract evaluation process and take decisive action to address the slow pace of work by RCC.
News
Old Students’ Association Marks Anniversary
The Rivers Secondary Schools Old Boys and Girls 1983 Set Association marked its one year anniversary in Port Harcourt on 22nd December 2024.
The association is a body of old boys and girls of 1983 graduating set of secondary schools in Rivers State, Nigeria conceptualised to provide opportunities for reconnection and reminiscing over old times, networking, creating avenues for personal and professional growth, fostering friendships and celebrating milestones.
The one year anniversary gathering which took place at Galaxy PHD Event Centre, in GRA Phase 2, Port Harcourt, brought together different professionals and was heralded with classic photo shoot session, free speeches and talks on how to move the association to greater heights. It was rounded off with a dinner.
Speaking at the event, the Chairman of the Board of Trustees of the association, Chief Hope Kuku, congratulated members for the one year anniversary.
He encouraged members to reach out to more classmates in order to grow the association as the advantages are enormous in terms of business growth and social interactions.
He said he was already looking forward to a steady growth of the Association to mark the 10th anniversary.
Also speaking, the President of the association, Barrister Tubokumba Harry, described the last one year of the association as “exciting and really fulfilling” promising to “get more of our set mates on board”.
He stated that the coming together as classmates of the same set would inculcate a bond built on shared experiences which can enhance communication skills, promote teamwork and collaboration with lasting memories that members would cherish in the future.
In her own remarks, the Secretary General of the association, Dr (Mrs) Ibinabo Ogolo said one year down the memory lane of the association has been wonderful as members have not only shared experiences but made significant strides towards achieving the aim and objectives of the association.
“We successfully organised programmes like celebrating the Day of the African Child with students of Government Technical College, Trans Amadi, Port Harcourt.
Also, a Road Walk and Health Awareness campaign through Port Harcourt streets to create awareness and sensitize the people of Rivers State on the health importance of walking.
The association also organised a “Hang-Out” session for members on 1st October, 2024 to foster relationships and networking and also joined other groups to relieve stress and depression at the Enjoyment Mega Sit Out at Port Harcourt Club in Port Harcourt.
These activities brought our members and community together”. She said.
On his part, the Chairman of the anniversary planning committee, Mr Tammy Owunaka noted that the association in just one year had grown to enviable height providing a platform for former classmates to reconnect, network and give back to the society.
Furthermore, he stated that the association created opportunities for professional mentorship, developments, and collaboration, thereby helping members to advance in their aspects of endeavour and personal lives.
He said that through the association, members have demonstrated that power of collective action and social responsibility can propel an organisation and commended the sense of belonging and camaraderie among members.
Also speaking, the legal adviser of the association, Barrister Ngozi Ajayi noted that though the association is only one year old, it was already walking on a purposeful path and urged members to remain committed to and focused to make the association one of the best in the state.
In his remarks, Barrister Sylvester Adaka, who is a former Chairman of Nigeria Bar Association, Port Harcourt Branch and a memeber of the association stated that so far the association is on the right path but will progress better with more classmates on board.
He commended the classic photo shoot session as a great way to portray the individual personalities of members, adding that he was looking forward to more events.
News
Nothing’ll Stop Governance In Rivers, Fubara Assures …Says We Won’t Allow Anyone Take State For A Ride
Rivers State Governor, Sir Siminalayi Fubara, has assured that his administration will not leave any stone unturned to checkmate and frustrate anyone or group of persons attempting to stop government from delivering good governance to the good people of the State.
He also assured that with the strong support of the pillars and frontiers of the political class and leaders, particularly those who built the foundational structures of Rivers politics, his administration will not allow any detractor or shenanigan take the State and its people for a ride going forward.
Governor Fubara gave the assurance while addressing Rivers people at a 2025 New Year State Banquet in Government House, Port Harcourt.
He expressed confidence that with the strong organic support of former governors, Dr Peter Odili and Sir Celestine Omehia; former Deputy Speaker, House of Representatives, Sir Austin Opara; former deputy governors, Sir Gabriel Toby and Engr Tele Ikuru; Senators John Azuta-Mbata, Lee Maeba, Andrew Uchendu, Adawari Michael Pepple; former national chairman of PDP, Prince Uche Secondus; former transport minister, Dr Abiye Sekibo; Amb Orji Ngofa; and other former and current elected political office holders and leaders at all levels, with proven integrity and accomplishments, no detractor would stand on the way of the State Government in achieving the giant strides it has set for itself.
The Governor said this year, “We will ensure we protect the integrity of this state, at all cost. We won’t allow anybody take this state for a ride. It doesn’t matter the approach I will use. It’s not going to be a fight. We will follow the issues as we did with the case when they (detractors) started begging. Nothing will stop us from not achieving the purpose of governance in this State.”
With strong confidence and faith in God and the people, the Governor said, “We are not bothered about what they (opposition) will come with. God will always have a way to save us from them. They are going to come, but we are not worried. We are equal to the task. I honestly thank our leaders, from Dr. Peter Odili, Sir Celestine Omehia, Sen John Azuta Mbata, Sir Austin Opara, Prince Uche Secondus, Dr. Abiye Sekibo; to others, for the organic support you are giving to our government.
“A lot of persons would not understand what is really happening. This is not to say we did not have people that were with us and following us and fighting. But one of the troubles they (detractors) have where they are today is that they do not have any (strong) face (in Rivers politics) with them. The beginning and the end of politics in this State is Sir Peter Odili. And if he is sitting with us (here), and with these other persons, who do they have with them?
“This Dr. Odili is the right face and right image of our State. These are the frontiers of Rivers State politics. Men and women that have distinguished themselves are sitting with us (here). People who have contributed in several ways to make Rivers State what it is, not rented people they bring for dinner”, he added.
He recalled that the events of 2024, were a mix bag of daunting challenges, but quickly added that the year ended with his administration scoring more gains than losses, “2024 was not an easy year, but it was great for us in the end. About this time last year, we were not in a very pleasant mood, for fear of what might happen, because of the boasting of those who believe they control life”.
But while boldly projecting the 2025 outlook, the Governor said, “We will continue to put our trust in God as 2024 had been a wonderful year. We had our losses, and our gains. But the most important thing is that our gains surpassed the losses. We can boldly say 2024 was a good year for Rivers State. And year 2025, with your support, we are going to build on the gains of last year.”
He restated his administration’s determination to sustain the Rivers First policy, saying, “We will continue to protect the lives of our people and provide the required services in our State. We are not going to lower our guards. Rather, we will raise our bar because, what is speaking for us today is the achievements we are making in the face of obvious distractions.
“Therefore, raising the bar will be our own way of telling the world that no matter what is happening here, we mean well for the state and know what we are doing. It is not going to be easy. I know. God, at times, keeps evil people to live long to continue their evil, not because He does not know what to do but activities of evil people also keep the righteous people awake,” he stressed.
Governor Fubara commended everyone in the State for their organic support, and solicited for more support in 2025, emphasising, “We are not going to do it alone, because we have not made these gains alone. Whatever win we scored today, it is not myself alone, but the government and the support received from every one of you. I cannot pay you back for doing what is right for your State. It is our State, and at the end of the day, we are building a better future for those to take over after us. That is my own dream for the State.”
The Governor noted that it is not about power and what is done today, but sustaining a system that will be self-preserving, on which everyone can stand and be proud of the State, explaining, “I strongly believe that because of our desire to build, not our (private) supermarkets, or our hotels, but to build a (resilient) State, there is no way we will not succeed, because our interest is not for self, but the collective interest of our people.”
He assured that 2025 is going to be a year of all-round achievements, declaring that by February, 2025, his administration will embark on projects’ commissioning in other sectors, emphasising, “This time around, not roads. Our Fire Service, you can see what we are doing there. For over nine years, there was no functional Fire Service, but today, I can proudly tell you that we have bought all the vehicles, and we are remodelling the offices”.
The Governor added, “Education is the only instrument that can help our youths to avoid criminality and crime. Our State is behind in education, as our primary schools are shadows of themselves. You can see the provisions we made in our budget, and we are making sure education is given the required attention in this State.
“We have done much on health but we are going to spend more because you have to be alive to work. We are doing what we know is right, and doing those things that you can stand anywhere after our administration to defend us that our decisions were right. Nothing will stop us from achieving the purpose of governance in this State”, he vowed.
In his welcome remarks, the Secretary to the State Government, Dr. Tammy Danagogo, noted that the outgone year had been a wonderful one, and commended Governor Siminalayi Fubara, for being focused as an emancipator of the State, saying no matter the antics of the enemies, their acts to distract the government will continue to fail.
While proposing the toast for the New Year, member representing Andoni-Opobo/Nkoro Federal Constituency in the National Assembly, Hon Awaji-Inombek Abiante, said that Governor Fubara’s leadership qualities are a testament to the success of the administration, and prayed for the peace, unity and prosperity of the State, urging the “prodigals” to return home to join in the rebuilding of the Treasure Base of the Nation for future generations.
Highlight of the event was the cutting the New Year Cake by the Governor, who was joined by his Deputy, Prof Ngozi Odu; Speaker, Rivers State House of Assembly, Rt Hon Victor Oko-Jumbo; former governors Peter Odili and Celestine Omehia; Hon Austin Opara; Prince Uche Secondus; retired Justice Mary Odili (JSC); Chief Judge of the State, Justice Chibuzor Simeon Amadi; President, Customary Court of Appeal, Wilfred Ihemnacho Obuzor; Senators John Azuta Mbata, Lee Maeba, Andrew Uchendu, Adawari Pepple; Amb Orji Ngofa; and others.
-
Business3 days ago
No Mandate To Revive National Carrier – Aviation Ministry
-
News3 days ago
Ogoni Day: MOSOP Unites, Demands Share from OML 11
-
Politics3 days ago
APP Wants INEC To Conduct By-Election To Fill Rivers Assembly Vacant Seats
-
Niger Delta3 days ago
We’re Upgrading Tourism Sites Across C’River – Otu
-
Niger Delta3 days ago
Kalabari Media Forum Hails Recognition Of Dokubo Asari As Amayanabo
-
News3 days ago
In 2025, God’ll Crush Rivers Enemies – Fubara …Prays For Peace, Progress Of State …As He Attends Crossover Service In Opobo
-
News3 days ago
Old Students’ Association Marks Anniversary
-
Rivers3 days ago
Security: Experts Task Govt On Support For Paramilitary Organizations