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Nigeria: Health Centre Contract - 'FG is an Interloper'
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This Day (Lagos)
25 July 2008
Posted to the web 25 July 2008
Funso Muraina
Abuja
Messrs Mathan Nigeria Ltd, the contractor handling the revoked N37 billion health centre project, yesterday described the Federal Government as an interloper, interfering in an affair that does not concern it.
The company told a Federal High Court in Abuja, that the contract, awarded in 2007, was between it and Association of Local Government of Nigeria (ALGON).
Counsel to Mathan, Chief Adegboyega Awomolo, SAN, said the Attorney General of the Federation, Mr Michael Aondoakaa, SAN, was misinformed that the contract was between the Federal Government and his client.
"The Federal Government was never a party to the contract, ALGON only made government a facilitator to ease payment.
The payment was not to be deducted from the Federation Account as claimed by the AGF, but from allocation due to local government councils. By nullifying the contract, the Federal Government is a busy body, an interloper who interferes in an affair that does not concern it," Awomolo said.
Mathan had dragged the Federal Government before the court to challenge revocation of the contract awarded for construction of comprehensive health centre in each of the 774 local government councils.
Aondoakaa told the court on Monday, that the contract was revoked, because due process was not followed in its award.
"The past administration awarded the contract in error and due process was not followed in the award. Primary health-care is not in the exclusive or concurrent list and it is not the duty of the Federal Government to award contracts for construction of health centres. It is the residual power of states and local governments and the Federal Government cannot force them on how to use their money," the minister had said.
Aondoakaa also said there was no provision in the 1999 Constitution that allows deduction of fund due to any level of government directly from the Federation Account.
Mathan Nigeria Ltd. filed the action praying among other relief, an order setting aside the December 10, 2007 decision of the Federal Executive Council (FEC) revoking the contract.
Mathan Managing Director, Chief Athan Nneji, testified before the court that the contract award followed due process and there was no justification for its revocation.
The contractor asked the court to declare that FEC acted in excess of the power given to it by the 1999 Constitution, in revoking the contract.
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Defendants to the suit are, AGF, National Economic Council (NEC), Ministry of Finance, the Central Bank of Nigeria (CBN), Association of Local Government of Nigeria (ALGON) and Bank PHB.Meanwhile, Justice Mohammed Umar has adjourned till September 22, ruling on whether or not hearing in the case would start de-novo, as demanded by Aondoakaa.
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