Reps summon Health Minister, logistics firm over PPP, concessions
The Joint Committee of the House of Representatives investigating the performance of the Public-Private Partnership Programme (PPP) and concessions has invited the Minister of Health and Social Welfare, Prof. Ali Pate.
The House Joint Committee on Public Assets and Special Duties also summoned one of the firms involved in the PPP and concessions, MDS Logistics, to appear before it.
Rep. Ademorin Kuye, Chairman of the joint committee and Chairman of House Committee on Public Assets said this in Abuja on Wednesday when the committee met with officials of the ministry.
He said that the team from the Ministry of Health and Social Services failed to give satisfactory responses to the management of PPP and concessions when they appeared before them.
Prof. Sydney Ibeanusi, Director, PPP Diaspora, Federal Ministry of Health and Social Service, said in his presentation that the ministry runs PPP programmes with some private companies.
One such partnerships, according to him, is the ‘Warehouse in a Box Project’, saddled with the operation and maintenance of the Federal Central Medical Warehouse Lagos and the Premier Medical Warehouse Abuja.
The two warehouses located in Abuja and Lagos were insulated warehouses made up of pre-engineered modular components as well as fittings and operating components.
This, he said, includes offices, furnishings, racking, kitting, security, and office equipment, among others.
He said because of the partnership, the Federal Ministry of Health and Social Services handed over the warehouses to a company, MDS Logistics, in 2019 to manage for 5 years.
However, members of the committee argued that the management of these warehouses in the last few years fell short of expectations.
In a resolution, the committee decried the lack of proper management of PPP and concessions and attributed it to one of the factors responsible for the failure of several health facilities during COVID-19.
The committee also maintained that its observations indicated that some of the PPP and concessions were not in compliance with the Infrastructure Concession Regulatory Commission (ICRC).
The committee said that there were several discrepancies in the PPP agreement with MDS, adding that the major one was the payment terms to the federation.
The committee said it was meant to be after the 5-year concession period, adding that the new administration renegotiated payment of all the revenues that have accrued to the federal government.
This, according to the committee, covered the four years that the concession had run.
The committee said the only payment made came with massive deductions for the maintenance of the facility.
The committee said it should have been borne by the partners in the concession according to the agreed sharing formula.
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