By Francis Ottah Agbo & Uba Aham, Enugu For Dr. Ahmadu Adah Ali, physician and National Chairman, Peoples Democratic Party (PDP), politics and business are first cousins. As chairman between 1999 and 2003 of the management board of the University of Nigeria Teaching Hospital in Ituku/Ozalla, Enugu State, Ali achieved a seamless fusion of both predilections. The result was a rash of unwholesome contract awards, that left gaping holes in the hospital’s finances.
When his tenure was over, UNTH was owing contractors and the banks over N600 million. His board began feasting on the finances of the UNTH in August 2001, when it awarded an eight million Naira contract for the electrification to Ozalla and Ituku, UNTH’s host communities. The contract was awarded to Lickon Juddy and Company, a firm believed to be jointly owned by Ali and Chief Linus Ike Onyia, an Ozalla indigene and member of the UNTH board. The firm also has a branch office in Idah, Kogi State, Ali’s hometown. Though the contracting firm has been paid in full, TheNEWS checks revealed that no extension has been carried out. The electricity currently enjoyed by the communities was provided via the electrification programme of the Enugu State Government. Government’s intervention did not placate the two communities. In April 2002, the communities raised a 40-member committee to protest the non-execution of the contract. Led by Engr. CDC Nwanneche, the committee protested to the UNTH management. But the protest yielded no result.
googletag.cmd.push(function() { googletag.display('content1'); });
A month later, the committee wrote a ‘Save Our Soul’ letter to the UNTH board. This time, the letter worked like magic. By July, the UNTH donated electrical equipment worth N12 million to Ozalla. Briefing the Ozalla Town Union on his stewardship on the board, Onyia said a company by name Exon Electrical Enterprises Nigeria Limited located at 11 Ekwulobia Street, Achara Layout, Enugu has been awarded the contract for the lectrification of Ozalla. In a letter dated 7 May 2002, signed by J.T.O. Osunwa, the hospital’s Director of Administration and Secretary to the board, the board said the decision to award the contract was taken at its meeting held on 5 and 6 April 2002. A day before the N12 million contract was awarded, the board had awarded to Exon a N6 million contract for the rehabilitation of vandalised NEPA line to Nvene Water Pumping Station. But a visit to Nvene water station showed that no rehabilitation was carried out, as the station remains non-functional. This magazine’s investigations at the Corporate Affairs Commission in Abuja, indicated that there is no company registered with the name Exon Electrical Enterprises Nigeria Limited. TheNEWS’ attempts to locate the equipment and the contractor were futile. “This is a clear case of diversion of funds between Ahmadu Ali and Ike Onyia because Ali single-handedly awarded contracts to either himself, using Onyia as front, or to companies jointly owned by the duo or to non-existent companies.
Today, we still live in darkness, yet we hear that millions of electrification contracts have been awarded,” lamented Nwannaneche. He called on the Economic and Financial Crimes Commission (EFCC) to probe Ali’s tenure. While the host communities griped, Onyia had a ball, as he bagged another meaty contract from the UNTH. It was a N33 million Naira contract for the connection of water from Ufam Stream to the UNTH site. The contract was awarded without recourse to the Finance and General Purpose (FG and P) Committee. Aside from this, indigenes of Ituku and Ozalla have not drawn a bucket of water from the Afam Stream, though the board paid Onyia in 2003. Next to this was the contract for the cutting of grass, levelling and stumping of cleared area at the UNTH. This was awarded to Sun Supreme Enterprises Nigeria, allegedly co-owned by Ali and Onyia, at an inflated sum of N14 million. Documents available to this magazine show that the board approved the sum of N9.5million. There was also the contract award for the supply of two 608 executive buses in 2001. Unsurprisingly, it was awarded to Lickon Juddy and Company which has its head office at 146 Zik Avenue, Uwani Enugu, and Bemej Nigeria Limited located at 26 Durban Street, Wuse II, Abuja. Ali is believed to have interest in Bemej. Each of the buses was supplied at the cost of N4.8 million. TheNEWS’ checks revealed that the buses supplied were refurbished, though the contract agreement stipulated the purchase of new ones. The magazine gathered that the buses broke down in less than two months. Ali himself confirmed this in a letter addressed to the Director of Administration on 11 May, 2001. He directed the works department to repair and repaint buses that were supposed to be brand new. “Please liaise with AD Works to take delivery of the two buses from the supplier.... ‘‘ Windows to be fitted, new tyres to be fitted and old tires to accompany the vehicle as spares licenced,” Ali wrote. UNTH host communities blame Onyia for their fate. To their chagrin, however, Onyia was re-appointed to the UNTH board. The landowners of the two communities expressed their displeasure in a letter to the board on 3 August 2005. Signed by their leader, Daniel Okoh, the letter was addressed to the Chief Medical Director (CMD), UNTH, Dr. Anthony Mbah. In it, they accused Ali of using their kinsman to destroy the hospital. “Our greatest surprise is that the Teaching Hospital is about recovering from Linus Ikechukwu Onyia’s fraudulent nature when he was a board member. Unknown to the presidency, he was now reappointed as a board member to finally close the UNTH. Why?” they queried. The letter was sequel to another written by the Ituku/Ozalla Joint Committee. The committee wrote: “The Board Chairman, Ahmadu Ali, in collaboration with his “son,” Chief Linus Ike Onyia as he (Ali) calls him, continued denying Ituku/Ozalla what is meant for them while at the same time, using their positions as members of Board and Board Chairman to appropriate these benefits for themselves and their families ...With Chief Ike Onyia used as conduit pipe, such benefits as employment, provision of amenities, concessional contracts are appropriated by the two men.” The committee also accused Ali of breaching due process in the award of contracts. The rules governing management boards of federal government agencies and parastatals allow the board or the FPand G Committee to award contracts that are not above N10 million. Contracts worth more than N10 million are to be referred to the Ministerial Tenders Board. But the UNTH Board under Ali’s leadership awarded contracts running into hundreds of millions without recourse to the Ministerial Tenders Board. This was shown in the N17million contract for the rehabilitation of n 11KVA Sub-Station and network ring maintenance at Ituku/Ozalla.The contract was awarded to Exon Electrical Enterprises. Yet, there was more sleaze. In June 2002, the Federal Government allocated N500 million to the University of Nigeria, Nsukka (UNN) for the construction of the College of Medicine at Ituku/Ozalla.
In December of that year, the sum of N350 million was released to the Vice Chancellor of UNN. But the money was hijacked by the UNTH Board, part of which was used to offset a debt owed to a company named VAMED. TheNEWS’ checks revealed that the UNN’s cheque of N350 million was diverted to UNTH’s account. One Chukwudi Onuchukwu was said to have withdrawn the cheque from UNN’s capital account, while one Joy Orjiakor lodged it in the hospital’s account. Both Onuchukwu and Orjiako are blood brothers. Both work in UNTH’s accounts department. While Onuchukwu is the Assistant Chief Accountant, Orjiako works as Deputy Director of Accounts. Ali was alleged to have promoted Onuchukwu ahead of his senior colleagues for his role in the diversion of the said N350 million. When contacted, Onuchukwu and Orjiakor declined comments on the allegation of their involvement. But Dr. Mbah, UNTH’s Chief Medical Director, confirmed that the money belonged to UNN. He, however, said it was released to the hospital in error, but could not explain the source of the error. “Following that discovery, the authorities of UNN and UNTH and the Federal Ministry of Finance met and sorted it out,” Mbah said. But a minority report by four of the board members questioned why such money was erroneously “cash-backed” in favour of UNTH. Besides, the report which was dated 18 November 2003 and addressed to the Chief Medical Director, alleged that the contract for which the money was paid was inflated. The authors of the minority report were Professor M.A.C. Aghaji, Provost, College of Medicine, Dr. Okey Onwuasoigwe, former President, Nigerian Medical Association (NMA) Enugu State; Dr. A.C. Nwabueze, former Chairman, Medical Advisory Committee, UNTH, and Dr. H.I.O Ozokwo, Director Medical Services, Enugu State Ministry of Health. The report alleged that N100 million contract awarded by the Ali-led board to VAMED for the installation equipment at the UNTH permanent site, was inflated to N421.99 million. The board’s action, however, incurred the wrath of Alhaji Adamu Ciroma, former Minister of Finance. In a letter dated 2 April 2003 and addressed to the Accountant- General of the Federation, Ciroma said the allocation belonged to the UNN and not UNTH. While stressing that it behoves on his ministry to “implement the appropriation for the purpose and spirit of its enactment,” the minister urged the Accountant-General to ensure that the N350 million was returned to the capital account of UNN. “
googletag.cmd.push(function() { googletag.display('content2'); });
The allocation of N500 million under the completion of Teaching Hospital Project in the year 2002 capital breakdown was located under the University of Nigeria, Nsukka and from which the sum of N350 million was approved for release in June, 2002 Via AIE No. BD/184/2002 of 6th June 2002. There was no allocation of N350 million to the University of Nigeria Teaching Hospital, Enugu, per se in the 2002 budget and neither was an AIE issued to its Chief Medical Director for the same amount. Though the project’s title: Completion of Teaching Hospital Project, which was allocated N500 million, would tend to suggest that the allocation was for UNTH, earlier correspondence on the subject suggested that the allocation was as a result of the earlier promise of Mr. President to assist the University of Nigeria build up its College of Medicine which we were informed was one of the two components of UNTH namely, the College of Medicine and the Hospital. In view of the above, you are requested to reverse the cash backing and take measures to return the N350 million funds to the capital account of University of Nigeria Nsukka A/C No. 1030200119 at the Central Bank of Nigeria, Enugu,” wrote Ciroma. But the board ignored the directive. And on 26 November 2003, Professor Eyitayo Lambo, the new Minister of Health, dissolved the board with immediate effect and directed Ali to handover to the CMD. By the time the board was dissolved, it was owing contractors about N602.6million. There was also an alleged fraud of N2.9 million. In 2003, UNTH attempted to use the account of Ali’s surrogate and member of the Board, Chief Linus Onyia, to withdraw the hospital’s money trapped in the distressed African International Bank, Enugu branch. UNTH issued a cheque to Onyia through his company, Chin International Limited. Onyia, in turn, issued a cheque to be cashed at a branch of Continental Trust Bank in Enugu. Onyia’s cheque was issued in the name of Exon Electrical Enterprises Nigeria, a non-existent company. TheNEWS investigations showed that the cheque of N2.9 million has not been paid into UNTH accounts. A petition written by Onuchukwu Jerry Onovoh of Community Primary School, Ishi Ozalla and dated 13 September, 2005, accused Ali of using Onyia to siphon N2.9 million. Both the CMD and Onyia confirmed that the cheque was issued in the name of Chin International Limited. But Onyia added that the money was not withdrawn before the Ali Board was liquidated. He, however, did not explain why he did not return the cheque. Onyia also admitted that the two model 608 buses supplied by Lickon Juddy Company to the UNTH at N9.6 million were second-hand. Attempts to speak with Ali’s successor, Dr. Charles Amanze, on whether board members are allowed to own companies or award contracts to their companies proved abortive. Decree No 10 of 1985 bars serving board members from having interests in contracts entered into by their boards. Yet, Onyia is the managing director of Lickon Juddy and Company which has executed many contracts at the hospital. Although the company’s headquarters is at Onyia’s 146 Zik Avenue, Enugu, it has a branch office at 1 Nitel Close, Idah, Ali’s home town. Ali himself is said to be the owner of Bemej Nig. Ltd., another company currently handling projects at the hospital. Incidentally, Bemej’s head office located 26 Durban Street, Wuse II, Abuja, shares the same office with Chin International Ltd. Indeed, Messrs Bemej Nig. Ltd nicked N16 million contract for the repair of rusted and leaking valves and rehabilitation of ground and overhead storage tanks at the permanent site. In a letter of approval dated 7 July, 2003 and signed by Dr. A.U. Mbah, CMD, the board paid 25 per cent of the contract sum as mobilisation fee. The Ali-led board was also alleged to have unjustifiably sacked some UNTH staff of Ituku/Ozalla origin. The sacked workers were sacked and denied their severance benefits in 2001. The workers were said to have been sacked on Ali’s orders, for applying to the board for the de-casualisation of their appointments after working for between four and 11 years. "We were recruited by UNTH for over four to eleven years. We have been enslaved and when it was time to make our appointments permanent, we were sacked without benefits,” Michael Okparadike, one of the sacked workers, told TheNEWS. However, this magazine’s attempts to speak with Ali were frustrated. A letter requesting Ali’s response was not honoured. It was received by Mr. Bimbola Osuntusa, Ali’s Confidential Secretary and Personal Assistant. Osuntusa minuted on the letter and directed the reporter to route it through the office of the PDP National Publicity Secretary, John Odey. But Odey’s secretary threw away the letter and yelled: “You are our enemy. If you don’t leave the secretariat, you will be arrested.” The reporter later reported what happened to Odey. Odeh phoned the secretary and instructed her to file the letter. He also assured that the PDP Chairman would speak with the magazine if he was given more time. He explained that Ali was busy holding meetings with PDP governors. One week after, the reporter called Odey to confirm the appointment with Ali. Odey said the PDP boss was too busy to spare even 10 minutes to respond to the allegations. Ali is not a stranger to scandals and controversies. During the reconstitution of boards of Federal Government agencies and parastatals last year, he nominated his wife, Mariam, as a member of the Nigerian Ports Authority (NPA) board and his eldest son, Ogala, to the board of the Nigeria Railway Corporation (NRC). To deflect suspicion, Ali wrote in their initials. This enabled the nominees to evade scrutiny. While his wife’s name read Dr. M.N. Ali, his son’s name was written O.A. Ali. But other nominees’ names were written in full. However, party members who did not make the list saw through Ali’s scheme and raised alarm. They petitioned the President, accusing Ali of hijacking juicy board appointments for himself and members of his family. They also accused him of breaching the party’s constitution by doubling as party chairman and Director-General of G8- funded South-South Health Care. The petitioners also alleged that Ali awarded choice contracts at the PDP national secretariat to his wife. These included a N43 million contract for the printing of 10 million PDP registration cards; N20 million contract for the refurbishing of the conference hall and the provision of internet facilities and a N9 million contract for the sinking of boreholes. Though an embarrassed Obasanjo reacted to the petition by suspending the inauguration of the NPA and NRC boards, the contracts awarded to Mariam Ali were not revoked. Back in 1978, Ali’s tenure as federal commissioner for education witnessed a massive students’ riot during which many university students were murdered. The protest began when the Federal Government introduced tuition fees and removed subsidy on students’ feeding in tertiary institutions.
googletag.cmd.push(function() { googletag.display('comments'); });