FRAUD: HOW PROF. A.J. YUSUF BREACHED PPA 2007, ON COVID-19 SPECIAL INTERVENTION PROJECT AND SHORTCHANGE FG BY WITHOLDING OF TAXES.

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By: Adamu Musa (Correspondent)
EpistleNews, Kaduna.

Prof. A.J Yusuf, the Chief Medical Director (CMD) of the Federal Neuro-Psychiatric Hospital, Barnawa, Kaduna State, has been petitioned for Breach of Public Procurement Act 2007 in the Award of COVID-19 Special Intervention Project. Hence, selective disbursement of 15% Mobilisation Fee to only his interests, withholding of 5% Tax and 7% VAT deduction.

Investigations reveal the clandestine practice by Prof. Yusuf, and documents sited by EpistleNews, clearly shows favoritism and abuse of office, thereby breaching public trust. The payment of 15% mobilisation fee were made to some contractors believed to be the Medical Director’s agents without the mandatory 1% stamp Duties, 5% Withholding Tax and 7% VAT deducted as at the time of payment.
This was done to facilitate these Companies believed to be owned by his agents who front for him so that the projects would be funded all through with Government funds because these contractors lack the financial capacity to carry out any public procurement which is a prerequisite for the award of contract to any contractor.

And for all payments on the projects, the 1% compulsory stamp duty payment for all contracts was not charged and none of the contractors has made any payment to the Federal Inland Revenue Service (FIRS). This has amounted to robbing the Federation of over the sum of Four Million, Five Hundred Thousand (#4,500,000.00) naira only.

The Public Procurement Act, 2007, Section 36, states that, “contract performance guarantee shall be a precondition for the award of any procurement contract upon which any mobilisation fee is to be paid provided however, it shall not be less than 10% of the contract value in any case or an amount equivalent to the mobilisation fee requested by the contractor or supplier, whichever is higher.”
In view of the Section 36, all the contracts awarded for the COVID-19 Intervention Project, no contract performance guarantee was requested from the contractors by the Chief Medical Director. He only requested for Bank Advance Payment Guarantee or Insurance Bond and these are entirely different from a Contract Performance Guarantee.

The petitioners, who are concerned members of Staff and having watched several infractions committed by Prof. A.J Yusuf, since assumption of office; have decided to bring to the notice of the Federal Government and other relevant Agencies to institute an independent investigation team (Committee) to carry out a forensic audit to verify the facts and even extend their tentacles beyond the COVID-19 Intervention Projects.

CC: Minister of State for Health, Federal Ministry of Health, Abuja.
Director, Hospital Services, Federal Ministry of Health, Abuja.
Federal Ministry of Health (FMoH), Abuja.
Director General, Bureau for Public Procurement (BPP), Abuja.
Head, Presidential Initiative on Continuous Audit (PICA).
Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Chairman, Economic and Financial Crimes Commission (EFCC), Abuja.
Director General, Department of State Security (DSS), Abuja.
Committee of Chief Executive of Federal Tertiary Health Institutions.
The Vice Chancellor, Ahmadu Bello University (ABU), Zaria.
The Chief Medical Director, Ahmadu Bello University Teaching Hospital (ABUTH), Zaria.
Chairman, Senate Committee on Public Procurement.
Chairman, Senate Committee on Public Account.
Chairman, Senate Committee on Health.
Chairman, House Committee on Public Procurement.
Chairman, House Committee on Public Account.
Chairman, House Committee on Health.
The President, Association of Psychiatry of Nigeria (APN).
Branch Chairman, Medical and Dental Consultant Association of Nigeria (MDCAN).
The President, Association of Resident Doctors of Nigeria, FNPH-Branch.
The Chairman, Medical and Health Workers Union of Nigeria (M&HWUN), FNPH Branch.
The Chairman, National Association of Nigerian Nurses and Midwives, FNPH-Branch.
Premium Times Newspaper.
Sahara Reporters.
Daily Trust Newspaper.
EpistleNews.

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