House of Representatives on Tuesday flagged off investigation into the status of the 17-year-old agreement signed between Federal Government and May & Baker on the Local production of vaccines in the country.
The investigative hearing was organized by the House of Representatives’ joint Committee on Public Assets and Special Duties on the need to investigate and assess the performance of Public-Private Partnership (PPP) programmes and concession agreement(s).
The joint Committee was mandated to investigate and assess the performance of the PPP and concession agreement and make recommendations on ways to improve the nation’s infrastructural development with Federal Ministry of Health and Social Welfare.
In his remarks, the Chairman, House Committee on Public Assets, Hon. Ademorin Kuye who requested for relevant documents on various projects being implemented by the Ministry said: “I want to point you to some of the areas that you need to help us with.
“One is not really sure, because before you came I was talking to Professor Sydney about the share percentage of Federal Government in this JV arrangement. So, 49 belongs to Federal Government and 51 for May and Baker.”
In his response, Minister of Health and Social Welfare, Professor Ali Pate on Tuesday disclosed that the Ministry has handed over all Federal Government-owned assets to Federal Ministry of Finance Incorporated (MOFI).
He said: “I think the issue on the table here is the issue of Bio vaccine Nigeria Limited, which is join venture between Federal Government and May and Baker.
“This is an arrangement that was constructed in 2007 that was several administrations before that concessioned the Yaba Lab to May and Baker – a pharmaceutical company on thr basis of an agreement to manufacture vaccines in Nigeria.
“The percentage based on that agreement that was written in 2007 was 51 percent for May and Baker, 49 percent for the Federal Government. So the document that we are trying to collate date back to 2007 and the more recent information is, we don’t want to present to this committee, information that is inadequate, inaccurate.
“But we take the guidance that we will give you the list, the gap and we will sign it, I personally will sign it, when we come back to the Committee on May and Baker and BVNL.”
In his intervention, Hon. Kuye asked for details on the report that 49 percent shares belonging to Federal Government has been transferred to Ministry of Finance Incorporated (MOFI), demanded for the document on the transfer of share, title documents of land given to May and Baker and tell us the status of the land.
“And then we requested for certain approvals as it relate to the National Blood Management system and this other company. We requested for the ICRC signoff on that JV and then the FEC approval.
“We saw in your document here that the ICRC has signed off issuing you with compliance certificate on that JV.
“However, the FEC approval for that transaction which has since commenced since 2023 we don’t have the FEC approval because in your document you said, ‘tentative approval’ that you were given.”
In his response, Professor Pate said: “because we’ve asked for time to give you the information but there are certain facts that I need to clarify.
“On the May 10th 2023, ICRC and the agreement on the Management Blood Service, we have not taken it to FEC, it has not been approved, our guidance on the Blood Commission is out of it. And so, there’s no valid implementable agreement we know as a Ministry.
“Now, we will provide the draft agreement as it were to this Committee.
With regards to BVNL, the 2007 agreement, we are digging up our documentation and would do our best to find the titles and other requested documents because it’s 17 years ago.
“The recent decision we took in August 2023, for the 49 percent shares which the Federal Government holds, the custodian of all Federal Government’s assets including NNPCL and others is Ministry of Finance Incorporated and we transferred those shares to Federal Government entity that is responsible for holding the assets of the Federal Government.”
He added that the agreement between Federal Government on the Blood Management Commission has not been implemented, adding that the Ministry will provide relevant information on the status of the initiative to the Committee.
“As far as we in the administration, we have our hold on it and we will come back to you with full status update with the Blood Service Commission which is under the Ministry.”
While ruling, Deputy Chairman, House Committee on Public Assets, Hon. Dabo Haruna mandated the Ministry to submit it’s report on the 19th November, while the Minister will appear on the 26th November, 2024.
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