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Nigeria: Contractor Faults Revocation of Healthcare Contract
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Vanguard (Lagos)
25 July 2008
Posted to the web 24 July 2008
Ise-Oluwa Ige
A Federal high court sitting in Abuja yesterday heard that the Federal Government was misled into revoking a N37billion contract awarded by the regime of President Olusegun Obasanjo for the construction of comprehensive health centres in each of the 774 local government councils in the country.
Mathan Nigeria Ltd made the claim on a day the Federal Government urged the court to hear its preliminary objection afresh.
The objection is challenging the jurisdiction of the court to entertain the suit.
The Attorney-General of Federation, Chief Michael Andoakaa who canvassed argument in the case said the claim by Mathan Nigeria Limited that government was caught by issue estopel and could not bring a fresh preliminary objection did not hold water.
He said it was true that a preliminary objection was earlier brought on behalf of government and was dismissed but that the fresh preliminary objection raised issues which were different from the one dismissed.
He said the objection was being brought de novo.
For instance, he said that one of the reasons why they brought the fresh preliminary objection was because deducting local government funds from the source to finance local council project was unconstitutional.
"This is clearly an infraction of the constitution. I urge the court to canvass arguments on this issue," he said.
He added that Mathan could not raise an objection to the hearing of the government's preliminary objection to the hearing of the suit.
But leading counsel to Mathan Nigeria Limited, Chief Adegboyega Awomolo (SAN) urged the court to dismiss the fresh preliminary objection by the government for many reasons.
He said that there was nothing wrong in raising an objection to the hearing of another preliminary objection under the rule of the court and "this court is guided by the rules"
Besides, he said that the Honourable Attorney-General misconceived the principle of starting a case de novo when it said that government's fresh objection was being brought de novo.
He said the expression de novo means trying a matter anew. He said it means fresh trial on facts and law.
"There has been no termination of this case at any stage. There has been no order for retrial either at any particular time
He said "this is a continuation of hearing and not retrial.
He said that the issue of de novo trial could not apply.
He also said yesterday that contrary to the claim by the government that its decision to revoke the contract was in tandem with the rule of law, Awomolo said that the government had no business revoking the contract.
He said that it was so because the Federal Government never awarded the contract.
He said the contract was between Mathan Nigeria Limited and ALGON.
He said the Federal Government was brought in to ensure standard and compliance.
He added that the Federal Government was nothing but a meddlesome interlopper and that if it has any defence to the suit, it should bring it up instead of slowing down the pace of proceedings in the case.
Vanguard recalls that the contractor for the project, Mathan Nigeria Ltd. had filed the suit praying among other reliefs, an order setting aside the December 10, 2007 decision of the Federal Executive
Council (FEC) revoking the contract.
Mathan's Managing Director, Chief Athan Nneji, had testified before the court that the contract award followed due process and there was no justification for its revocation.
The contractor had asked the court to declare that FEC acted in excess of the power given to it by the 1999 Constitution in revoking the contract.
Defendants to the suit are the Attorney-General of the Federation (A-GF), the National Economic Council (NEC), Ministry of Finance, the Central Bank of Nigeria (CBN) Association of Local Government of Nigeria (ALGON) and Bank PHB.
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The administration of former President Olusegun Obasanjo had approved the project for all the 774 local government councils to improve accessibility to health at the grass roots.
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Dear Nigerians, The problem here is not about impressing us with yr definition of Roman terms in a circle. The rancid part of this contract is traceable to the manner in which the self acclaimed illiterate who persistently called Obasanjo the "Baba he never met" got the award of such a highly sensitive, gigantic and intricate contract without much competition. We are not interested with yr denovos which most of us in Miami where almsot every language is taught and spoken can translate easily. Revisit the facts behind the making of... [Read Full Text]
Well, if the present administration and some Nigerians feel that for the poor people in the 774 local government councils in the country health centres are REDUNDANT then it befits the image of the country that is being propagated. If it is progress for the country not to have health centres, then the administrationis moving the country forward.
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