Stakeholders want MD Owoeye sacked from Lagos Neuro-Pyschiatric Hospital as tenure ends May 31

The corruption probe initiated by the Federal Ministry of Health (FMoH) into the fraud and corruption allegations levelled against Dr. Olugbenga Owoeye, the embattled Medical Director of the Federal Neuro-Psychiatric Hospital, Yaba, Lagos, has been concluded.

SaharaReporters learnt that the investigative team dispatched by the Federal Ministry of Health had concluded its assignment and reported back to the headquarters two weeks ago.

However, inside sources from the Lagos neuro-pyschiatric hospital suggested the investigation might have been compromised.

Sources alleged that the medical director had been boasting that no one could prevent him from securing a second term in office when his present tenure ends on May 31, 2025.

A source said: “Sadly, it appears that the medical director succeeded in compromising the investigation as he has been boasting that no one can prevent him from getting a second term in office. He was reported to have repeatedly said that he “treated” the investigators very well and they had no choice but to write a favourable report about him.

He also bragged that he is in good relationship with the decision makers, and therefore, “he is 100% confident he would continue as the medical director.”

Insiders within the hospital revealed that Dr. Owoeye has drawn up a list of staff he believed exposed his corrupt practices and has threatened to deal with them if reappointed.

Despite repeated calls from stakeholders for his suspension during the course of the probe to prevent interference, the ministry failed to act on this demand.

This, according to the source, further enabled the alleged manipulation of the investigative process.

Stakeholders, however, said they remain hopeful that the Minister of State for Health, Dr. Iziaq Salako, will not compromise or shield any wrongdoing.

They also disclosed that a petition has been submitted to the presidency, detailing what they described as the corrupt and criminal actions of Dr. Owoeye.

The source continued: “Although the stakeholders expressed worries about how the team of investigators conducted their activities, they are confident that the Minister of State for Health, Dr Iziaq Salako, will not compromise or condone such unscrupulous behaviour. They also said they have petitioned the presidency about the corrupt and criminal actions of Dr. Owoeye.

“The incumbent medical director has been lobbying for a second term in office despite having allegations of monumental corruption involving misappropriation of Drug Revolving Fund of about N400 million, embezzlement of patients’ food money running into hundreds of millions of Naira, misappropriation of special intervention fund of over N300 million,  and capital projects funds, among other atrocities. Dr. Owoeye has not been able to deny any of these allegations.

“The Medical Director’s Professional Association, Medical and Dental Consultants Association of Nigeria, Yaba branch (MDCAN-FNPHY), has also passed a vote of no confidence in him because his corruption has led to serious disruption of quality of care.

“The nurses in the hospital currently do not have a professional association of National Association of Nigeria Nurses and Midwives (NANNM) because Dr Owoeye has consistently blocked all efforts to resuscitate the association. The nurses, however, have accused him of corruption openly in a general staff meeting last month, and the medical director had to end the meeting abruptly.”

The embattled director had been accused of massive corruption, including the misappropriation of the Drug Revolving Fund to the tune of about N400 million, diversion of patients’ food funds running into hundreds of millions of Naira, and embezzlement of over N300 million in special intervention funds.

Dr. Owoeye has yet to deny any of the allegations publicly.

“As we speak, all the issues brought against him are still there. Patients’ meals are still poor and irregular, and pharmaceutical companies are still being owed hundreds of millions of Naira. Despite floating the illegal schemes of collecting cash directly from patients for medications, thereby bypassing Treasury Single Account, medications are still not readily available. Patients are still being seen in an open hall without regard for privacy as the outpatient clinic building project remains uncompleted due to the squandering of project funds. The special intervention fund of over N300 million also remains unaccounted for,” the inside source added.

SaharaReporters earlier reported how Dr Olugbenga Owoeye admitted to diverting funds meant for patients’ meals and medication to settle electricity and diesel bills.

In recordings obtained by SaharaReporters in April, Owoeye had been heard justifying the controversial practice during a staff meeting.

He had cited skyrocketing electricity bills and a lack of sufficient funding from the Nigerian Government as the rationale behind the move.

He had said, “Our NEPA (electricity) bills in this hospital is between N35 million to N40 million every month. Diesel is about N18 million monthly. That is N58 million. And those who remove the dead people and other stuff, let’s say about N2 million to N3 million. And they [the government] are giving us N23 million to manage and run the hospital. So how will we use this N23 million to pay NEPA bills of N40 million, N18 million of diesel?”

He continued, narrating how electricity was disconnected at the facility and how he had to plead with the Federal Ministry of Health in Abuja. “The last time they cut our light, I ran to Abuja to go and meet the Permanent Secretary. I asked what can you do for me in the ministry to help me pay the N40 million bills. The woman told me they have also cut the light of the federal ministry… that everybody is managing themselves.”

Owoeye then revealed how the hospital management resorted to sourcing funds internally.

“We put our head together… The money we were able to make from the system and they (the power company) installed our light. That was how we stopped having issue with light. The balance on how we paid it — it is from the little, little money that we get from the gains of drugs, gains from patients’ foods, that we combine and add to that money to pay these bills.”

. SaharaReporters