Controversy Surrounds Obudu-German Hospital Ownership and Procurement Violations

Obudu, Cross River – The ownership of the Obudu-German Hospital in Cross River State has sparked outrage among concerned citizens, following allegations of procurement law violations and conflict of interest involving high-profile figures.

An investigation by TheInvestigator reveals that the hospital, presented as a public project, is privately owned by Dr Betta Edu, a former Minister of Humanitarian Affairs and Disaster Management, and business mogul Samuel Josiah. The revelations highlight serious lapses in transparency and accountability in the management of state projects.

Background: The Obudu-German Hospital was hailed as a flagship project to transform Cross River State into Nigeria’s premier destination for medical tourism. However, investigative reports have unearthed a complex web of procurement violations, conflicts of interest, and opacity in public-private partnerships.

Key Findings:

1. Private Ownership of a Public Project:
   • The 140-bed Obudu-German Hospital, commissioned on May 27, 2023, as a medical tourism hub by then-Governor Ben Ayade, is privately owned by Josiah and Edu through Obudu-German Hospitals Limited.
   • Records from the Corporate Affairs Commission (CAC) show Josiah owns 95% of the company’s shares, while Edu owns 5%.
2. Procurement Violations:
   • The hospital’s N500 million contract was awarded to Coscharis Group Limited—a company with ties to Josiah and Edu—in violation of Cross River State’s Procurement Law of 2020.
   • Sections 8a and 21 of the law prohibit public officials from awarding contracts to entities in which they have vested interests.
3. Budgetary and Documentation Irregularities:
   • The project was not listed in the state’s 2021 budget or quarterly audit reports.
   • The reference code on the state e-procurement portal is invalid, raising questions about oversight and financial accountability.
4. Structural Failures and Underutilization:
   • The facility is reportedly underutilized, with key medical equipment lying dormant due to inadequate electricity supply.
   • Structural issues, including cracks and water damage, have emerged within a year of commissioning.
5. Secrecy Surrounding the Memorandum of Understanding (MoU):
   • Efforts by current officials to access the hospital’s MoU have been unsuccessful, further clouding ownership and operational details.
6. Conflicting Claims on Ownership:
   • While former Governor Ayade’s media aide insists the hospital is government-owned, Coscharis Group Limited claims sole ownership, with the state holding only a 5% equity stake.
   • No public records corroborate the state’s ownership claims.
7. Calls for Accountability:
   • Civil society groups, including the Citizens Solutions Network and #FollowTheMoney Movement, are demanding a public inquiry into the allegations of corruption and mismanagement.

Conclusion: The revelations surrounding the Obudu-German Hospital project underscore the need for stringent oversight and adherence to procurement laws in Cross River State. Citizens and accountability experts are urging the state government to address the irregularities, clarify ownership details, and ensure transparency in future projects.