Witness: Ex-NHIA boss bypassed procurement rules

Nkereuwem Effiong

A prosecution witness in the trial of former National Health Insurance Authority (NHIA) Executive Secretary, Professor Usman Yusuf, has told the Federal Capital Territory High Court in Kuje, Abuja, that a vehicle supply contract awarded under Yusuf’s leadership bypassed due procurement procedures.

James Balami, Director of Procurement at NHIA and the second prosecution witness (PW2), disclosed on Thursday before Justice Chinyere E. Nwecheonwu, alleging that the contract awarded to Lubekh Nigeria Ltd did not pass through the Authority’s Procurement Department.

Balami told the court that Lubekh Nigeria Ltd is owned by Kabiru Yusuf Yar’adua, whom he identified as the defendant’s brother.

Led in evidence by prosecution counsel, Francis Usani, Balami said the Economic and Financial Crimes Commission (EFCC) had requested information from NHIA regarding three companies — Lubekh Nigeria Ltd, Zaramat Global Company Ltd and GK Kanki Foundation.

According to him, although Lubekh Nigeria Ltd submitted the required documents and was found technically and financially responsive, the procurement department was sidelined in the award process.

“It emanated from the Human Resources Department to the Chief Executive Officer and Accounting Officer, Professor Yusuf. So, it did not go through procurement and, by implication, did not follow procurement procedures,” he told the court.

Balami further testified that Hassan Khalifa Yusuf, identified as Professor Yusuf’s nephew and son of Kabiru Yusuf Yar’adua, evaluated the contract awarded to Lubekh Nigeria Ltd while serving as a seconded staff member at the Authority.

The witness also revealed that multiple petitions alleging maladministration and procurement breaches were filed against Professor Yusuf with the EFCC, ICPC, the Federal Ministry of Health and the Presidency.

Head, Media and Publicity, Dele Oyewale, said the petitions led to the establishment of both ministerial and presidential investigative panels.

Defence counsel, O. I. Habeeb, SAN, objected to Balami’s oral testimony concerning the petitions and investigative panels, describing it as irrelevant, but Justice Nwecheonwu overruled the objection.

“I don’t think he has exceeded his boundaries,” the judge ruled.

During cross-examination, Balami told the court that Exhibit B, which reflected N80 million — comprising N30 million in 2015 and N50 million in 2016 — for Prado SUVs, was merely a schedule of contracts considered by the Tenders Board and not an approved budget or appropriation.

He maintained that, based on Exhibit B, the Tenders Board lacked authority to approve the contract award.

Justice Nwecheonwu adjourned the case until October 14 and 15, 2026, for continuation of cross-examination and further hearing.