Contracts awarded by ex-NHIA boss bypassed procurement process — Witness tells court

Court gavel

The trial of former Executive Secretary of the National Health Insurance Authority, NHIA, Professor Usman Yusuf, continued on Thursday before the Federal Capital Territory High Court in Kuje, Abuja, with a prosecution witness alleging that contracts awarded during his tenure did not follow due procurement procedures.

The second prosecution witness, James Balami, who is the Director of Procurement at the NHIA, told Justice Chinyere Nwecheonwu that a vehicle supply contract awarded to Lubekh Nigeria Ltd was not processed through the Procurement Department of the agency.

Balami, who testified under examination-in-chief led by prosecution counsel, Francis Usani, said the contract was linked to Kabiru Yusuf Yar’adua, whom he identified as a brother to the defendant.

According to him, the Economic and Financial Crimes Commission had requested information from the NHIA concerning Lubekh Nigeria Ltd, Zaramat Global Company Ltd and GK Kanki Foundation.

He stated that although Lubekh Nigeria Ltd submitted documents for the contract and was evaluated to be technically and financially responsive, the procurement process was allegedly bypassed.

“The process emanated from the Human Resources Department to the Chief Executive Officer and Accounting Officer, Professor Yusuf, without the involvement of the Procurement Department. By implication, it did not go through procurement process,” the witness said.

Balami further told the court that Hassan Khalifa Yusuf, whom he identified as the son of Kabiru Yusuf Yar’adua and nephew to the defendant, participated in evaluating the contract awarded to Lubekh Nigeria Ltd while serving as a seconded staff member of the NHIA.

The witness also informed the court that multiple petitions alleging maladministration and procurement breaches were lodged against Yusuf with agencies including the EFCC, ICPC, the Federal Ministry of Health and the Presidency.According to him, the petitions led to the constitution of both ministerial and presidential investigative panels.

During proceedings, defence counsel, O. I. Habeeb, SAN, objected to portions of the witness’ testimony relating to the petitions and investigative panels, arguing that they were irrelevant to the case.

However, Justice Nwecheonwu overruled the objection, holding that the witness had not exceeded the boundaries of his testimony.

Under cross-examination, Balami referred to Exhibit B, which he said contained provisions of N80 million for Prado SUV purchases, comprising N30 million in 2015 and N50 million in 2016.

He clarified that the exhibit was merely a schedule of contracts considered by the Tenders Board and not an approved budget or appropriation document.

Asked whether the Tenders Board had authority to approve the contract award based on the exhibit, the witness responded, “Yes my lord, based on Exhibit B, they have no authority to approve the award.”

Justice Nwecheonwu subsequently adjourned the matter till October 14 and 15, 2026 for continuation of cross-examination and further hearing.

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