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Socio-Economic Rights and
Accountability Project (SERAP)

Socio-Economic Rights and Accountability Project (SERAP) has
urged President Muhammadu Buhari “to direct the Attorney General of
the Federation and Minister of Justice Mr Abubakar Malami, SAN, and
appropriate anti-corruption agencies to probe allegations that
N3,836,685,213.13 of public funds meant for the Federal Ministry of
Health, teaching hospitals, medical centres, and National Food Drug
Administration and Control (NAFDAC) are missing, mismanaged,
diverted or stolen.”

image

The organization said the allegations are documented in Part 1
of the 2018 audited report released last week by the Office of the
Auditor-General of the Federation.

image

The organization is also urging him to “promptly investigate the
extent and patterns of widespread corruption in the Federal
Ministry of Health, teaching hospitals, medical centres,
neuro-psychiatric hospitals, National Health Insurance Scheme, and
NAFDAC indicted in the audited report, and to clean up an
apparently entrenched system of corruption in the health
sector.”

In the letter dated 2 January 2021 and signed by SERAP deputy
director Kolawole Oluwadare, the organization said: “Corruption in
the health sector can cause serious harm to individuals and
society, especially the most vulnerable sectors of the population.
These missing funds could have been used to provide access to
quality healthcare for Nigerians, and meet the requirements of the
National Health Act, especially at a time of the COVID-19
pandemic.”

According to SERAP, “The Federal Ministry of Health, Abuja spent
without approval N13,910,000.00 to organize a 2-day Training and
Bilateral discussion with Chief Medical Directors and Chairmen
Medical Advisory Council and the Ministry of Budget and National
Planning to prepare 2019 Personnel Budget. ₦4,860,000.00 was
originally budgeted for the programme.”

SERAP said: “The National Food Drug Administration and Control
(NAFDAC) paid N48,885,845.00 for services not rendered and goods
not supplied. According to the Auditor-General, NAFDAC used fake
and fictitious receipts for these payments. NAFDAC also paid
N25,734,018.49 to companies/firms who were never awarded any
contracts and never executed them.”

The letter, read in part: “Investigating and prosecuting the
allegations of corruption by these institutions would improve the
chances of success of your government’s oft-repeated commitment to
fight corruption and end the impunity of perpetrators, as well as
serve the public interest.”

“Any failure to promptly investigate the allegations and
prosecute suspected perpetrators, and to recover the missing public
funds would breach Nigeria’s anti-corruption legislation, the
Nigerian Constitution of 1999 (as amended), the UN Convention
against Corruption, and the International Covenant on Economic,
Social and Cultural Rights to which Nigeria is a state party.”

“Similarly, the Neuro-Psychiatric Hospital Management Board
Aro-Abeokuta, Ogun State failed to account for N28,662,265.32,
which was to be used to procure drugs, implants, and other inputs,
as approved by the Federal Government. The Auditor-General wants
the money returned to the treasury.”

“The National Health Insurance Scheme spent N355,510,475.00 on
projects between 2016 and 2017 without appropriation. The Scheme
also spent N32,299,700.00 to provide ‘financial medical assistance’
to individuals who have not been enrolled into the scheme
(NHIS).”

“The Scheme also spent N72,383,000.00 on verification exercise
without any supporting documents. The Scheme awarded contracts of
N66,798,948.12 to members of staff for procurements, instead of
making the procurement through award of contracts.”

“The Federal Neuro-Psychiatric Hospital Enugu, Enugu State paid
N5,200,000.00 as salary advance to the Medical Director. However,
the Medical Director was neither proceeding on transfer, on posting
nor on first appointment to qualify for salary advance. The
Auditor-General is asking the Medical Director to refund the money
collected. Another N3,387,139.00 is said to be missing but the
Hospital management has failed to report the case, or recover the
money.”

“The Irreal Specialist Teaching Hospital, Irrua Edo State paid
N58,829,426.84 to two contractors for supplies and installations
but without payment vouchers.”

“Also, Jos University Teaching Hospital Jos, Plateau State
failed to remit N333,386,549.15 being 25% of its internally
generated revenue of N1,333,546,196.60 to the Consolidated Revenue
Fund. The Hospital also failed to account for N8,572,777.25.”

“The Lagos University Teaching Hospital, Lagos, failed to remit
₦945,422,478.23 to appropriate tax authority. The Hospital also
failed to remit ₦237,007,828.05 to the Consolidated Revenue Fund,
and failed to remit ₦22,307,735.21 being withholding tax deducted
from contracts in 2018.”

“The Federal Medical Centre, Owerri, Imo State also failed to
remit ₦8,519,506.75 being 25% of its internally generated revenue
to the Consolidated Revenue Fund. The Medical Centre also spent
₦542,877,312.77 as personnel cost between 2015 and 2016 instead of
₦12,761,350,337.00 appropriated for the same period.

“The Medical Centre failed to account for ₦898,076,719.14 of its
internally generated revenue, and failed to account for
₦23,598,074.38 of personnel cost. The National Primary Health Care
Development Agency, Abuja spent without approval N19,564,429.91 as
estacode allowance to various staff of the Agency.”

“The Federal School of Occupational Therapy, Oshodi, Lagos
failed to remit ₦3,250,962.98 of its internally generated revenue
for 2018 to the Consolidated Revenue Fund. The School also failed
to remit N4,018,252.81 being funds deducted from various contracts.
It spent ₦10,507,393.00 without any appropriation or approval.”

“The Federal Medical Centre, Keffi Nasarawa State failed to
remit N2,147,036.00 of its internally generated revenue to the
Consolidated Revenue Fund. It also failed to remit N5,810,438.05 to
the Federal Inland Revenue Service.”

“The Medical and Dental Council of Nigeria failed to remit
N68,604,040.68 of its internally generated revenue to the
Consolidated Revenue Fund.”

“Allegations of corruption in the health sector undermine public
confidence in the sector, and obstruct the attainment of
commitments made through Sustainable Development Goals, in
particular Goal 16 to create effective and accountable
institutions. The allegations also show that Nigeria is failing to
fulfil the obligations to use its maximum available resources to
progressively realize and achieve basic healthcare services for
Nigerians.”

“We would be grateful if your government would indicate the
measures being taken to address the allegations and to implement
the proposed recommendations, within 14 days of the receipt and/or
publication of this letter.”

“If we have not heard from you by then as to the steps being
taken in this direction, the Registered Trustees of SERAP shall
take all appropriate legal actions to compel your government to
implement these recommendations in the public interest, and to
promote transparency and accountability in the health sector.”

The letter is copied to Mr Abubakar Malami, Dr Osagie Ehanire,
Minister of Health, and Professor Bolaji Owasanoye, Chairman
Independent Corrupt Practices and Other Related Offences Commission
(ICPC).

Socio-Economic Rights and
Accountability Project (SERAP)

Socio-Economic Rights and Accountability Project (SERAP) has
urged President Muhammadu Buhari “to direct the Attorney General of
the Federation and Minister of Justice Mr Abubakar Malami, SAN, and
appropriate anti-corruption agencies to probe allegations that
N3,836,685,213.13 of public funds meant for the Federal Ministry of
Health, teaching hospitals, medical centres, and National Food Drug
Administration and Control (NAFDAC) are missing, mismanaged,
diverted or stolen.”

image

The organization said the allegations are documented in Part 1
of the 2018 audited report released last week by the Office of the
Auditor-General of the Federation.

image

The organization is also urging him to “promptly investigate the
extent and patterns of widespread corruption in the Federal
Ministry of Health, teaching hospitals, medical centres,
neuro-psychiatric hospitals, National Health Insurance Scheme, and
NAFDAC indicted in the audited report, and to clean up an
apparently entrenched system of corruption in the health
sector.”

In the letter dated 2 January 2021 and signed by SERAP deputy
director Kolawole Oluwadare, the organization said: “Corruption in
the health sector can cause serious harm to individuals and
society, especially the most vulnerable sectors of the population.
These missing funds could have been used to provide access to
quality healthcare for Nigerians, and meet the requirements of the
National Health Act, especially at a time of the COVID-19
pandemic.”

According to SERAP, “The Federal Ministry of Health, Abuja spent
without approval N13,910,000.00 to organize a 2-day Training and
Bilateral discussion with Chief Medical Directors and Chairmen
Medical Advisory Council and the Ministry of Budget and National
Planning to prepare 2019 Personnel Budget. ₦4,860,000.00 was
originally budgeted for the programme.”

SERAP said: “The National Food Drug Administration and Control
(NAFDAC) paid N48,885,845.00 for services not rendered and goods
not supplied. According to the Auditor-General, NAFDAC used fake
and fictitious receipts for these payments. NAFDAC also paid
N25,734,018.49 to companies/firms who were never awarded any
contracts and never executed them.”

The letter, read in part: “Investigating and prosecuting the
allegations of corruption by these institutions would improve the
chances of success of your government’s oft-repeated commitment to
fight corruption and end the impunity of perpetrators, as well as
serve the public interest.”

“Any failure to promptly investigate the allegations and
prosecute suspected perpetrators, and to recover the missing public
funds would breach Nigeria’s anti-corruption legislation, the
Nigerian Constitution of 1999 (as amended), the UN Convention
against Corruption, and the International Covenant on Economic,
Social and Cultural Rights to which Nigeria is a state party.”

“Similarly, the Neuro-Psychiatric Hospital Management Board
Aro-Abeokuta, Ogun State failed to account for N28,662,265.32,
which was to be used to procure drugs, implants, and other inputs,
as approved by the Federal Government. The Auditor-General wants
the money returned to the treasury.”

“The National Health Insurance Scheme spent N355,510,475.00 on
projects between 2016 and 2017 without appropriation. The Scheme
also spent N32,299,700.00 to provide ‘financial medical assistance’
to individuals who have not been enrolled into the scheme
(NHIS).”

“The Scheme also spent N72,383,000.00 on verification exercise
without any supporting documents. The Scheme awarded contracts of
N66,798,948.12 to members of staff for procurements, instead of
making the procurement through award of contracts.”

“The Federal Neuro-Psychiatric Hospital Enugu, Enugu State paid
N5,200,000.00 as salary advance to the Medical Director. However,
the Medical Director was neither proceeding on transfer, on posting
nor on first appointment to qualify for salary advance. The
Auditor-General is asking the Medical Director to refund the money
collected. Another N3,387,139.00 is said to be missing but the
Hospital management has failed to report the case, or recover the
money.”

“The Irreal Specialist Teaching Hospital, Irrua Edo State paid
N58,829,426.84 to two contractors for supplies and installations
but without payment vouchers.”

“Also, Jos University Teaching Hospital Jos, Plateau State
failed to remit N333,386,549.15 being 25% of its internally
generated revenue of N1,333,546,196.60 to the Consolidated Revenue
Fund. The Hospital also failed to account for N8,572,777.25.”

“The Lagos University Teaching Hospital, Lagos, failed to remit
₦945,422,478.23 to appropriate tax authority. The Hospital also
failed to remit ₦237,007,828.05 to the Consolidated Revenue Fund,
and failed to remit ₦22,307,735.21 being withholding tax deducted
from contracts in 2018.”

“The Federal Medical Centre, Owerri, Imo State also failed to
remit ₦8,519,506.75 being 25% of its internally generated revenue
to the Consolidated Revenue Fund. The Medical Centre also spent
₦542,877,312.77 as personnel cost between 2015 and 2016 instead of
₦12,761,350,337.00 appropriated for the same period.

“The Medical Centre failed to account for ₦898,076,719.14 of its
internally generated revenue, and failed to account for
₦23,598,074.38 of personnel cost. The National Primary Health Care
Development Agency, Abuja spent without approval N19,564,429.91 as
estacode allowance to various staff of the Agency.”

“The Federal School of Occupational Therapy, Oshodi, Lagos
failed to remit ₦3,250,962.98 of its internally generated revenue
for 2018 to the Consolidated Revenue Fund. The School also failed
to remit N4,018,252.81 being funds deducted from various contracts.
It spent ₦10,507,393.00 without any appropriation or approval.”

“The Federal Medical Centre, Keffi Nasarawa State failed to
remit N2,147,036.00 of its internally generated revenue to the
Consolidated Revenue Fund. It also failed to remit N5,810,438.05 to
the Federal Inland Revenue Service.”

“The Medical and Dental Council of Nigeria failed to remit
N68,604,040.68 of its internally generated revenue to the
Consolidated Revenue Fund.”

“Allegations of corruption in the health sector undermine public
confidence in the sector, and obstruct the attainment of
commitments made through Sustainable Development Goals, in
particular Goal 16 to create effective and accountable
institutions. The allegations also show that Nigeria is failing to
fulfil the obligations to use its maximum available resources to
progressively realize and achieve basic healthcare services for
Nigerians.”

“We would be grateful if your government would indicate the
measures being taken to address the allegations and to implement
the proposed recommendations, within 14 days of the receipt and/or
publication of this letter.”

“If we have not heard from you by then as to the steps being
taken in this direction, the Registered Trustees of SERAP shall
take all appropriate legal actions to compel your government to
implement these recommendations in the public interest, and to
promote transparency and accountability in the health sector.”

The letter is copied to Mr Abubakar Malami, Dr Osagie Ehanire,
Minister of Health, and Professor Bolaji Owasanoye, Chairman
Independent Corrupt Practices and Other Related Offences Commission
(ICPC).

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