... Yusuf: Those complaining are corrupt
The Executive Secretary of the National Health
Insurance Scheme (NHIS), Prof. Usman Yusuf is planning to invest at least N25
billion of the scheme’s funds into federal government securities through NHIS'
new financial adviser, the Cowry Asset Management Limited.
This is even as the Minister of Finance, Kemi
Adeosun and her counterpart in the Ministry of Health, Prof. Isaac Adewole,
according to documents available to journalists, have both warned against the
investment, citing it as an indirect violation of the government’s Treasury
Single Account (TSA) policy.
But the executive secretary has said he is not
doing anything outside the NHIS Act, and that the Minister of Health gave his
approval for the investment to be made.
According to a document seen by journalists referenced
NHIS/ES/262 and titled: “Re: Urgent Need for the NHIS to Invest Its Residual
Funds,” which was addressed to the managing director of Cowry Asset, the NHIS
appointed the firm as its asset manager/financial adviser, and subsequently put
placed for the investment.
The document says: “By this letter, I am formally
engaging Cowry Asset Management Limited to be the scheme’s Asset
Manager/Financial Adviser, and authorising it to advise the scheme on investing
in Federal Government Securities.”
The document also quoted an approval given by the
Minister of Health vide letter Ref: HMH/ABJ/032/X/465 dated August 18, 2017,
for the NHIS to start investing its residual funds in the bonds.
However, Prof. Yusuf was silent on a counter letter
with Ref number: HMH/ABJ/312/11/82 dated 29th August 2017 and titled: "Re:
Approval to Commence Investment of NHIS Residual Funds in Securities,"
where the minister asked him not to proceed with the investment, citing
violation of federal government's TSA policy.
“This is to inform you that the Honourable Minister
of Finance has advised against the proposal to invest NHIS residual funds in
securities. The approval of such investment, she stated, will be an indirect
violation of the Governments Treasury Single Accounts (TSA) policy.”
The minister’s letter further added that “because
of the above, the Central Bank of Nigeria has been advised to pay Treasury Bill
rates on any residual balance held in the TSA with the CBN for investment
trust".
“You are therefore directed to stop all actions and
processes on the investment of NHIS residual funds in securities with immediate
effect and approach the CBN to facilitate the payment of interest on residual
funds,” the letter added.
Insider sources hinted that the brain behind the
"urgent" need to invest NHIS residual funds stemmed from the House of
Representatives Committee on Health’s visit to the organisation.
He stated that when the committee came to NHIS for
its oversight function, it recommended that the scheme invest its residual
funds in securities, but the then acting executive secretary, Mallam Attahiru,
turned down the suggestion, citing the directive from the Minister of Health in
a letter dated 29th August 2017.
The source further added that “the committee
members were not impressed and expressed their disappointment".
This much was corroborated in the letter written
by Yusuf appointing Cowry Asset as its
asset manager/financial adviser.
“In August 2017, members of the House committee
conducted an oversight visit to the scheme and discovered that it had not been
investing its funds in the face of the continuing depletion and poor cash
backing from the federal government. It recommended the urgent need to invest
funds it does not immediately require.”
The curious twist, according to a source within
NHIS, was a letter written by Cowry Asset and signed by one Nathan Nwokoro and
Okwudili Egwu, to Yusuf on the 5th of March, 2018 requesting the NHIS to invest
the sum of N25 billion.
The letter reads in part: “That all funds more than
the expected 12 months obligations of N62.5 billion so invested in Long-Term
FGN securities to serve as your growing reserves with periodic significant
coupon payments into the scheme. Given your current financial standing, invest
N25 billion immediately to take advantage of the current attractive yields in
the market.”
Cowry Asset in the said letter listed the FG Bonds
to be purchased as 14.2 MAR -14—2024 for N5 billion, 12.5 JAN – 22-2026, for N5
billion, 16.2884- MAR-17-2027 for N5 billion, 10.00-JUL- 23-2-30 for N5 billion
and 12.1493- JUL-18-2034 for N5 billion.
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