Heads may roll again at the federal ministry of health as the Senate has resolved to conduct full scale investigation into the award of Euro 162 million (N28.26 billion) contract for the rehabilitation of 14 University Teaching Hospitals across the country under former President Olusegun Obasanjo.
Beneficiaries of the contract were alleged to have abandoned over 60 percent of the job after receiving full payment from the ministry.
Some officials of the ministry were alleged to have made some startling revelation in connection with the contract, in the preliminary submission to the senate committee on health.
The probe followed a fresh plan by the ministry to award a N8.5 billion contract for the upgrading of 12 Federal Medical Centres (FMC) in the country.
The contracts for the rehabilitation of the 14 teaching hospitals, was awarded to VAMED Engineering Limited in 2002 and 2006.
But senate committee at the weekend vowed to unravel the circumstances that led to the emergence of VAMED as the sole bidder for the multi million naira contract.
The company in 2002 was through sole bidding, awarded Euro 95 million contract for the rehabilitation of eight University Teaching Hospitals in Lagos, Ibadan , Maiduguri , Port-Harcourt, Enugu , Ilorin and Jos.
But top officials of the ministry, who appeared before the Senate committee on health, penultimate week, said that the company completed six, leaving that of Ilorin and Jos Teaching Hospital uncompleted.
The company, under the chairmanship of Prince Albert Awofisayo, also, through sole bidding again in 2006, got a Euro 67 million contract for six other university teaching hospitals located in Calabar , Benin, Ife , Sokoto, Kano and Nnewi.
Source alleged that the company abandoned a greater percentage of the job and was kicking .against the decision of the ministry to award N8.5billion contract for the upgrade of the FMC.
According to him, forces working for the beneficiary company were alleged to have launched a campaign of calumny against some top officials of the ministry opposed to the emergence of the company as the sole bidder for the job.
He disclosed that some of the officials had already made submission to the committee insisting on due process in the award of the contract..
The committee had, following a series of petitions sent to it by some non-governmental organizations (NGOs), intervened in the award and execution of the contracts as part of its oversight functions.
VAMED Engineering Limited, the Senate committee was informed, kicked against the decision by the health ministry to award the fresh N8.5 billion for the upgrade of 12 Federal Medical Centres (FMC) through a competitive bidding.
It claimed there is a subsisting agreement between it and the Federal Government, which was why the project was included in the 2008 budget that has been approved by the Presidency. .
A member of the senate committee, Senator Anthony Manzo, disclosed at the weekend that the committee has heard from the officials of the ministry, adding that the management of VAMED had been invited to appear before the committee when the Senate resumes in September to present its case.
According to Manzo: “We have heard from the ministry officials, they have explained all the issues involved to us and we are going to hear from VAMED Engineering Limited as the committee wants to be fair to all parties.”