• Yusuf: Those complaining are corrupt
• Denies yield meant to stockpile funds for Buhari’s re-election
bid
The Executive Secretary of the National Health Insurance Scheme
(NHIS), Prof. Usman Yusuf, is embroiled in yet another controversy
following his decision to invest at least N25 billion of the
scheme’s funds in government securities through Cowry Asset
Management Limited.
This is even as the Minister of Finance Kemi Adeosun and her
counterpart in the health ministry, Prof. Isaac Adewole, according
to documents seen by THISDAY, have both warned against the
investment, saying it is in violation of the government’s Treasury
Single Account (TSA) policy.
The TSA policy requires all federal ministries, departments and
agencies to domicile their funds in the TSA with the Central Bank
of Nigeria (CBN), except where the agency is granted exemption by
the federal government.
But Yusuf, who was suspended by Adewole last year over
corruption allegations and nepotism, but was reinstated by
President Muhammadu Buhari without recourse to his minister, has
said the health minister gave his approval for the investment to be
made.
According to a letter seen by THISDAY with reference number
NHIS/ES/262 and titled: “Re: Urgent Need for the NHIS to Invest Its
Residual Funds,” which was addressed to the managing director of
Cowry Asset Management, the NHIS boss appointed the firm as its
asset manager/financial adviser to advise the scheme on investments
in FGN bonds.
The letter said: “By this letter, I am formally engaging Cowry
Asset Management Limited to be the scheme’s Asset Manager/Financial
Adviser, and authorising it to advise the scheme on investing in
Federal Government securities.”
It also quoted an approval given by the health minister, vide
letter Ref Nos: HMH/ABJ/032/X/465 dated August 18, 2017, for the
NHIS to start investing its residual funds in bonds.
However, Yusuf was silent on a counter letter with Ref Nos:
HMH/ABJ/312/11/82 dated August 29, 2017, titled: “Re: Approval to
Commence Investment of NHIS Residual Funds in Securities,” where
the minister asked him not to proceed with the investment, citing a
violation of federal government’s TSA policy.
“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,” the minister’s August 29 letter stated.
The minister’s letter further added that “because of the above,
the Central Bank of Nigeria has been advised to pay Treasury Bill
rates on any residual balance held in the TSA with the CBN for
investment trust”.
“You are therefore directed to stop all actions and processes on
the investment of NHIS residual funds in securities with immediate
effect and approach the CBN to facilitate the payment of interest
on residual funds,” the letter added.
One inside source hinted that the trigger for the “urgent” need
to invest NHIS residual funds stemmed from the House of
Representatives Committee on Health’s visit to the organisation, as
well as concerns that the NHIS boss allegedly wants to use it as an
avenue to deploy the yield from the investment into Buhari’s
electioneering funds.
The source stated that when the House committee had visited the
NHIS for its oversight functions, it recommended that the scheme
invested its residual funds in securities, but the then acting
executive secretary, Mallam Attahiru, had turned down the
suggestion, citing the directive from the health minister in his
letter of August 29.
The source further added, however, that “the committee members
were not impressed and expressed their disappointment”.
This much was corroborated in the letter written by Yusuf
appointing Cowry Asset Management as its asset manager/financial
adviser.
“In August 2017, members of the House committee conducted an
oversight visit to the scheme and discovered that it had not been
investing its funds, despite the continuing depletion of the fund
and poor cash backing from the federal government.
“It, therefore, recommended the urgent need to invest the funds
it does not immediately require,” the source disclosed.
According to the source, based on Yusuf’s insistence on going ahead
with the investment, Cowry Asset Management had in a letter dated
March 5, 2018 and signed by Nathan Nwokoro and Okwudili Egwu,
written to the executive secretary, requesting the NHIS to invest
the sum of N25 billion.
The letter read in part: “That all funds more than the expected
12 months obligations of N62.5 billion so invested in Long-Term FGN
securities to serve as your growing reserves with periodic
significant coupon payments into the scheme.
“Given your current financial standing, invest N25 billion
immediately to take advantage of the current attractive yields in
the market.”
Cowry Asset, in the said letter, listed the FGN Bonds to be
purchased as 14.2 MAR -14—2024 for N5 billion, 12.5 JAN – 22-2026,
for N5 billion, 16.2884- MAR-17-2027 for N5 billion, 10.00-JUL-
23-2-30 for N5 billion and 12.1493- JUL-18-2034 for N5 billion.
Upon receipt of the letter of March 5, the executive secretary
equally approved the request on the same day. He wrote: “GM CMD,
Approved,” and appended his signature accordingly.
On the same day, yet another letter was written by Cowry Asset
Management with the title: “Indicative Offer to Sell FGN Bonds.”
The letter contained amongst other investment instructions, the
account details of Cowry Assets Management domiciled with Access
Bank Plc.
But a former management staff of the NHIS, who pleaded
anonymity, informed THISDAY that the NHIS executive secretary did
not have such powers to invest NHIS Funds to the tune of N25
billion, noting that it required the input of the scheme’s
governing council and final approval by the health minister.
“The NHIS Act requires that for any investment up to N10
billion, the board of the NHIS has to make a recommendation to the
Minister of Health for approval, so even the board does not have
such a mandate. If you ask me, I think it is criminal to embark on
such a venture,” he stated.
Another source noted that the approval given by the NHIS boss
was carried out to act quickly before the inauguration of the board
of the NHIS on March 7, 2018.
“You can see from the dates that the letter was sent in on March
5, 2018, by Cowry Asset Management and it was also approved on the
same day, while the board was inaugurated on March 7, 2018.
“If the executive secretary is sincere with his dealings in the
NHIS, why didn’t he wait for the inauguration of the board which
was some days away?
“Instead, he hurriedly approved not even with the input of the
Policy and Planning Department of NHIS.
“Let us say his actions were in the interest of the NHIS, doesn’t
the NHIS have a management team? How can an individual wake up and
accord himself such rights and privileges?” he wondered.
According to the source, prior to the go-ahead given to asset
management firm, the executive secretary had sought the support of
the scheme’s head of audit, Mr. John Okon, a general manager, who
was earlier suspended alongside the executive secretary.
“The executive secretary approached the head of the audit and
told him they needed to raise money for the elections and hence the
need for the long-term investment.
“But Okon refused on the grounds that during the seven months he
was on suspension, the APC government did nothing for him,” the
source further alleged.
He said owing to the lack of cooperation, Okon was redeployed
from the audit department and replaced with one Shehu Ademu, an
assistant general manager, who the source added, was not qualified
to hold the position.
“The executive secretary redeployed Okon from the audit
department and he was replaced by his crony Shehu Ademu, who is an
assistant general manager and not qualified to hold such a
sensitive position.”
When Okon was contacted by THISDAY, he said as a civil servant,
he was not authorised to grant interviews to the press.
A senior staff of the health ministry also told THISDAY that the
decision on the long-term investment of government funds without
the requisite approval from the supervisory ministry showed “we are
an unserious people in this country”.
“In the history of the NHIS, before the commencement of the TSA
policy, the highest NHIS has ever invested its funds is 12 months,”
he added.
Also, sources in the NHIS confided in THISDAY that since his
resumption of duty on February 6, 2018, following his recall from
suspension, the executive secretary has refused to append his
signature to any document except he had initiated it.
“It is such a terrible situation at the NHIS as it stands, the
morale of the staff is quite low,” said the sources.
When THISDAY reached out to Yusuf, he sighted NHIS Act, Part IV,
Section 4, as the reason for the investment, noting that the action
was not only right but was done to stem corruption in the
system.
Section 4 of Part IV of the NHIS Act states: “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.”
The characteristically abrasive Yusuf said those reporting him
to the press were corrupt Nigerians who wanted the status quo to
remain, adding that his mandate in the NHIS remains to sanitise the
system and grow the scheme.
“As I speak now, we have not invested a single penny since I came
on board because I wanted to know all the things they did in the
past and stop it.
“That’s exactly what I am doing. They won’t have the time to do
all the nonsense they did in the past. Every penny will be taken
back into the scheme.
“I am in NHIS to do the right thing. And I will do it
transparently. I will follow what the NHIS Act says. Corruption
will no longer be condoned in this scheme,” he said.
On concerns that the yield on the investment was not meant to
stockpile funds for Buhari’s re-election bid, as speculated, the
NHIS boss said: “This is not the Jonathan era. They think Buhari
will do that nonsense?
“Where we come from we are brought up well. NHIS money is blood
money, and it is meant to serve our people.
“Billions have been stolen. Now I am here as the chief executive
officer. I will grow the scheme for our people. Every penny that
comes in as an investment will be shown to the world, not all the
nonsense they did in the past.”
Asked if the health ministry was in support of the investment
since the NHIS Act specifies so, he said the minister does not have
to be in support, as what mattered was the NHIS Act, which is the
legal document establishing the scheme.
“Besides, the ministry gave its approval and we have a board which
we are currently discussing this decision with.”
According to him, anybody saying otherwise was lying. “They
don’t know who they are dealing with. The money will be invested,
returns will be shown to the entire world and the scheme will be
grown for our people,” he added.
The head of the NHIS Union, Abdulrazaq Omomeji, told THISDAY
that the governing council of NHIS was looking at the entire issues
in the organisation, adding that the union should be given the
chance to see how they can resolve the matter.
Source: Thisday
• Yusuf: Those complaining are corrupt
• Denies yield meant to stockpile funds for Buhari’s re-election
bid
The Executive Secretary of the National Health Insurance Scheme
(NHIS), Prof. Usman Yusuf, is embroiled in yet another controversy
following his decision to invest at least N25 billion of the
scheme’s funds in government securities through Cowry Asset
Management Limited.
This is even as the Minister of Finance Kemi Adeosun and her
counterpart in the health ministry, Prof. Isaac Adewole, according
to documents seen by THISDAY, have both warned against the
investment, saying it is in violation of the government’s Treasury
Single Account (TSA) policy.
The TSA policy requires all federal ministries, departments and
agencies to domicile their funds in the TSA with the Central Bank
of Nigeria (CBN), except where the agency is granted exemption by
the federal government.
But Yusuf, who was suspended by Adewole last year over
corruption allegations and nepotism, but was reinstated by
President Muhammadu Buhari without recourse to his minister, has
said the health minister gave his approval for the investment to be
made.
According to a letter seen by THISDAY with reference number
NHIS/ES/262 and titled: “Re: Urgent Need for the NHIS to Invest Its
Residual Funds,” which was addressed to the managing director of
Cowry Asset Management, the NHIS boss appointed the firm as its
asset manager/financial adviser to advise the scheme on investments
in FGN bonds.
The letter said: “By this letter, I am formally engaging Cowry
Asset Management Limited to be the scheme’s Asset Manager/Financial
Adviser, and authorising it to advise the scheme on investing in
Federal Government securities.”
It also quoted an approval given by the health minister, vide
letter Ref Nos: HMH/ABJ/032/X/465 dated August 18, 2017, for the
NHIS to start investing its residual funds in bonds.
However, Yusuf was silent on a counter letter with Ref Nos:
HMH/ABJ/312/11/82 dated August 29, 2017, titled: “Re: Approval to
Commence Investment of NHIS Residual Funds in Securities,” where
the minister asked him not to proceed with the investment, citing a
violation of federal government’s TSA policy.
“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,” the minister’s August 29 letter stated.
The minister’s letter further added that “because of the above,
the Central Bank of Nigeria has been advised to pay Treasury Bill
rates on any residual balance held in the TSA with the CBN for
investment trust”.
“You are therefore directed to stop all actions and processes on
the investment of NHIS residual funds in securities with immediate
effect and approach the CBN to facilitate the payment of interest
on residual funds,” the letter added.
One inside source hinted that the trigger for the “urgent” need
to invest NHIS residual funds stemmed from the House of
Representatives Committee on Health’s visit to the organisation, as
well as concerns that the NHIS boss allegedly wants to use it as an
avenue to deploy the yield from the investment into Buhari’s
electioneering funds.
The source stated that when the House committee had visited the
NHIS for its oversight functions, it recommended that the scheme
invested its residual funds in securities, but the then acting
executive secretary, Mallam Attahiru, had turned down the
suggestion, citing the directive from the health minister in his
letter of August 29.
The source further added, however, that “the committee members
were not impressed and expressed their disappointment”.
This much was corroborated in the letter written by Yusuf
appointing Cowry Asset Management as its asset manager/financial
adviser.
“In August 2017, members of the House committee conducted an
oversight visit to the scheme and discovered that it had not been
investing its funds, despite the continuing depletion of the fund
and poor cash backing from the federal government.
“It, therefore, recommended the urgent need to invest the funds
it does not immediately require,” the source disclosed.
According to the source, based on Yusuf’s insistence on going ahead
with the investment, Cowry Asset Management had in a letter dated
March 5, 2018 and signed by Nathan Nwokoro and Okwudili Egwu,
written to the executive secretary, requesting the NHIS to invest
the sum of N25 billion.
The letter read in part: “That all funds more than the expected
12 months obligations of N62.5 billion so invested in Long-Term FGN
securities to serve as your growing reserves with periodic
significant coupon payments into the scheme.
“Given your current financial standing, invest N25 billion
immediately to take advantage of the current attractive yields in
the market.”
Cowry Asset, in the said letter, listed the FGN Bonds to be
purchased as 14.2 MAR -14—2024 for N5 billion, 12.5 JAN – 22-2026,
for N5 billion, 16.2884- MAR-17-2027 for N5 billion, 10.00-JUL-
23-2-30 for N5 billion and 12.1493- JUL-18-2034 for N5 billion.
Upon receipt of the letter of March 5, the executive secretary
equally approved the request on the same day. He wrote: “GM CMD,
Approved,” and appended his signature accordingly.
On the same day, yet another letter was written by Cowry Asset
Management with the title: “Indicative Offer to Sell FGN Bonds.”
The letter contained amongst other investment instructions, the
account details of Cowry Assets Management domiciled with Access
Bank Plc.
But a former management staff of the NHIS, who pleaded
anonymity, informed THISDAY that the NHIS executive secretary did
not have such powers to invest NHIS Funds to the tune of N25
billion, noting that it required the input of the scheme’s
governing council and final approval by the health minister.
“The NHIS Act requires that for any investment up to N10
billion, the board of the NHIS has to make a recommendation to the
Minister of Health for approval, so even the board does not have
such a mandate. If you ask me, I think it is criminal to embark on
such a venture,” he stated.
Another source noted that the approval given by the NHIS boss
was carried out to act quickly before the inauguration of the board
of the NHIS on March 7, 2018.
“You can see from the dates that the letter was sent in on March
5, 2018, by Cowry Asset Management and it was also approved on the
same day, while the board was inaugurated on March 7, 2018.
“If the executive secretary is sincere with his dealings in the
NHIS, why didn’t he wait for the inauguration of the board which
was some days away?
“Instead, he hurriedly approved not even with the input of the
Policy and Planning Department of NHIS.
“Let us say his actions were in the interest of the NHIS, doesn’t
the NHIS have a management team? How can an individual wake up and
accord himself such rights and privileges?” he wondered.
According to the source, prior to the go-ahead given to asset
management firm, the executive secretary had sought the support of
the scheme’s head of audit, Mr. John Okon, a general manager, who
was earlier suspended alongside the executive secretary.
“The executive secretary approached the head of the audit and
told him they needed to raise money for the elections and hence the
need for the long-term investment.
“But Okon refused on the grounds that during the seven months he
was on suspension, the APC government did nothing for him,” the
source further alleged.
He said owing to the lack of cooperation, Okon was redeployed
from the audit department and replaced with one Shehu Ademu, an
assistant general manager, who the source added, was not qualified
to hold the position.
“The executive secretary redeployed Okon from the audit
department and he was replaced by his crony Shehu Ademu, who is an
assistant general manager and not qualified to hold such a
sensitive position.”
When Okon was contacted by THISDAY, he said as a civil servant,
he was not authorised to grant interviews to the press.
A senior staff of the health ministry also told THISDAY that the
decision on the long-term investment of government funds without
the requisite approval from the supervisory ministry showed “we are
an unserious people in this country”.
“In the history of the NHIS, before the commencement of the TSA
policy, the highest NHIS has ever invested its funds is 12 months,”
he added.
Also, sources in the NHIS confided in THISDAY that since his
resumption of duty on February 6, 2018, following his recall from
suspension, the executive secretary has refused to append his
signature to any document except he had initiated it.
“It is such a terrible situation at the NHIS as it stands, the
morale of the staff is quite low,” said the sources.
When THISDAY reached out to Yusuf, he sighted NHIS Act, Part IV,
Section 4, as the reason for the investment, noting that the action
was not only right but was done to stem corruption in the
system.
Section 4 of Part IV of the NHIS Act states: “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.”
The characteristically abrasive Yusuf said those reporting him
to the press were corrupt Nigerians who wanted the status quo to
remain, adding that his mandate in the NHIS remains to sanitise the
system and grow the scheme.
“As I speak now, we have not invested a single penny since I came
on board because I wanted to know all the things they did in the
past and stop it.
“That’s exactly what I am doing. They won’t have the time to do
all the nonsense they did in the past. Every penny will be taken
back into the scheme.
“I am in NHIS to do the right thing. And I will do it
transparently. I will follow what the NHIS Act says. Corruption
will no longer be condoned in this scheme,” he said.
On concerns that the yield on the investment was not meant to
stockpile funds for Buhari’s re-election bid, as speculated, the
NHIS boss said: “This is not the Jonathan era. They think Buhari
will do that nonsense?
“Where we come from we are brought up well. NHIS money is blood
money, and it is meant to serve our people.
“Billions have been stolen. Now I am here as the chief executive
officer. I will grow the scheme for our people. Every penny that
comes in as an investment will be shown to the world, not all the
nonsense they did in the past.”
Asked if the health ministry was in support of the investment
since the NHIS Act specifies so, he said the minister does not have
to be in support, as what mattered was the NHIS Act, which is the
legal document establishing the scheme.
“Besides, the ministry gave its approval and we have a board which
we are currently discussing this decision with.”
According to him, anybody saying otherwise was lying. “They
don’t know who they are dealing with. The money will be invested,
returns will be shown to the entire world and the scheme will be
grown for our people,” he added.
The head of the NHIS Union, Abdulrazaq Omomeji, told THISDAY
that the governing council of NHIS was looking at the entire issues
in the organisation, adding that the union should be given the
chance to see how they can resolve the matter.
Source: Thisday