The House of Representatives has received a petition alleging that the Pharmacists Council of Nigeria has granted a waiver to a private equity firm, Alta Semper Capital UK, otherwise known as Idi Holdings, to become a part owner of a popular retail pharmacy chain, HealthPlus, in Nigeria.
A lawyer, Oladimeji Ekengba, of the Oladimeji Ekengba & Co (KKLM Chambers), petitioned the House over the alleged illegal issuance of a certificate of ‘No Objection’ to the firm by the PCN.
The lawmaker representing Bende Federal Constituency in Abia State, Benjamin Kalu, had on Tuesday laid the petition, dated February 15, 2021, before the chamber on behalf of the lawyer.
It was titled, ‘Unlawful Issuance of a Letter of No Objection – A Waiver Unknown to the Pharmacists Council of Nigeria (PCN) Act & the Need for Withdrawal.’
Receiving the petition, the House resolved to carry out an investigation to determine the legality of a waiver granted.
The Speaker, Femi Gbajabiamila, had referred the matter to the House Committee on Public Petitions, for investigation.
In the petition, a copy of which our correspondent obtained on Thursday, the lawyer is challenging the waiver granted by the PCN to Alta Semper Capital UK purportedly permitting it to co-own HealthPlus.
The lawyer stated that according to Section 2(2) of the Pharmacists Council of Nigeria Act, P.17, 2004 (PCN Act), a retail pharmacy can only be wholly owned by a registered pharmacist or in partnership with other registered pharmacists.
He said consequently, the certificate issued to Alta Semper as a waiver by the Registrar of PCN is an illegality.
The petition read in part, “On the 29 September, 2017, an application was made by the law firm of Banwo & Ighodalo requesting the PCN Registrar to confirm ‘No Objection’ to a proposed equity investment transaction by a foreign owned private equity firm into HealthPlus Limited – a leading retail pharmacy chain in Nigeria.
“By letter dated 10 October 2017, the PCN Registrar rejected the request for confirmation of ‘No Objection’ on the basis that the proposed investment must comply with the normal ownership requirements.
“By letter dated 30 October 2017, Banwo & Ighodalo again requested for confirmation by PCN of ‘No Objection’ to the proposed equity investment – proposing this time that Mrs O. A. George – the Nigerian registered pharmacist and Founder & CEO of HealthPlus Limited would remain a shareholder and director of the company.
“By letter dated 30 October 2017, PCN confirmed ‘No Objection’ to the proposed investment on the condition that: Mrs. O. A. George or any other Nigeria licensed pharmacist, remains on the board of directors and retains a requisite shareholding in the Company, and also is ultimately responsible for the quality of the pharmaceutical services being rendered by the Company.
“Based on the ‘No Objection’ letter, an equity investment relationship came into fruition between HealthPlus Limited and Alta Semper Capital (aka Idi Holdings) in March 2018, in defiance of the clear stipulation of our laws regarding ownership and control of pharmacy business by a non-Nigerian licensed pharmacist.
“If this situation is not investigated and checked, especially in the current COVID-19 pandemic, it will create a loophole for charlatan investors to come in through the back door. Pharmaceutical practice standards and the integrity of the supply chain could be distorted and compromised.”
Kalu, who spoke to journalists after presenting the petition, said, “It was shocking to learn that by a letter dated 30 October, 2017, the PCN Registrar granted a waiver to an equity investment relationship between HealthPlus Limited and Alta Semper Capital UK in March 2018, in defiance of the clear stipulation of our laws which do not permit unqualified persons to own or operate a retail pharmacy business in Nigeria.
“A mere letter cannot and must not be allowed to abrogate an Act of the National Assembly. Therefore, any structure put on that weak foundation should not be allowed to stand because it was not birthed by legality.
“The only remedy for the Alta Semper-HealthPlus anomaly is for parties to be returned to status quo. While we are open to foreign direct investment, private equity companies must come through the front door and not the back door.
“We are a rule of law compliant nation. Investors must understand this and comply with our laws.”
