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How Amaechi Sunk N8.45bn On Failed Justice Adolphus Karibi-Whyte Hospital

The last administration had gone into partnership with Clinotech Diagnostic and Pharmaceutical Services, Inc. Canada to build a 15-storey 1000-bed Justice Adolphus Karibi Whyte Specialist Hospital, in 2008, but apart from an empty space of land at Igwuruta, no foundation had been laid.

The Permanent Secretary in the Ministry of Health, Sir Soniari Lawrence Isaac, disclosed to the judicial commission of inquiry into Sales of Valued Assets belonging to Rivers State that Clinotech from records available to him at the ministry failed to honor its obligation in the Memorandum of Understanding, MoU, entered into by both parties

The perm sect revealed that the MoU stipulated that while the Rivers State government holds 40 per cent equity Clinotech will have 60 per cent of the investment in the specialist hospital.

Isaac told the commission that the original cost of the hospital was put at $98 million out of which Rivers State paid $39.200 million representing 40 per cent of its equity share upfront. Available records showed that Clinotech did not pay any money in respect of its 60 per cent share holding.

The permanent Secretary informed the commission that he had checked for both the Memorandum of Understanding, MoU and the Share Holders Agreement but had not been able to find them.

Isaac, who said he was until he was redeployed to the ministry of health a permanent secretary in the ministry of justice disclosed that the Amaechi later contracted the construction of the hospital to Clinotech Turnkey and Management Limited

“I found out that the sponsors of Clinotech Turnkey and Management Limited were also the sponsors of Clinotech Diagnostic band Pharmaceutical Services Inc, Canada. So. the Rivers State government was again, dealing with the same persons that failed to deliver at the first instance”.

“From the response that we got from Clinotech, they claim to have been disappointed by their foreign financiers. Clinotech did not tell us what happened to the $30.200 million that was paid to them by the Rivers State government.

“The second instance was a straight forward contract in which the Rivers State government was meant to pay 20 per cent of the total cost of the project which stood at N3.49bn. The Rivers State government awarded the contract at the cost of $150 million”.

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