The Executive Secretary of the National Health Insurance Scheme (NHIS), Prof. Usman Yusuf, is embroiled in yet another controversy following his decision to invest at least N25 billion of the scheme’s funds in government securities through Cowry Asset Management Limited.
This is even as the Minister of Finance Kemi Adeosun and her counterpart in the health ministry, Prof. Isaac Adewole, have both warned against the investment, saying it is in violation of the government’s Treasury Single Account (TSA) policy.
The TSA policy requires all federal ministries, departments and agencies to domicile their funds in the TSA with the Central Bank of Nigeria (CBN), except where the agency is granted exemption by the federal government.
But Yusuf, who was suspended by Adewole last year over corruption allegations and nepotism, but was reinstated by President Muhammadu Buhari without recourse to his minister, has said the health minister gave his approval for the investment to be made.
According to a letter with reference number 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 Management, the NHIS boss appointed the firm as its asset manager/financial adviser to advise the scheme on investments in FGN bonds.
The letter said: “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.”
It also quoted an approval given by the health minister, vide letter Ref Nos: HMH/ABJ/032/X/465 dated August 18, 2017, for the NHIS to start investing its residual funds in bonds.
However, Yusuf was silent on a counter letter with Ref Nos: HMH/ABJ/312/11/82 dated August 29, 2017, titled: “Re: Approval to Commence Investment of NHIS Residual Funds in Securities,” where the minister asked him not to proceed with the investment, citing a 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 government’s Treasury Single Accounts (TSA) policy,” the minister’s August 29 letter stated.
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. – Thisday.
