The Federal Government said yesterday the N37 billion health centre contract awarded by the Olusegun Obasanjo administration was revoked because it did not follow due process.

The Attorney-General of the Federation, Mr Michael Aondoakaa, said this at the resumed hearing of a case filed by the project contractor, Messrs Mathan Nigeria Ltd, against the revocation. "The past administration awarded the contract in error and due process was not followed in the award.

"Primary health-care is not in the exclusive or concurrent list and it is not the duty of the Federal Government to award contracts for the construction of health centres.

"It is the residual power of the states and the local governments. The Federal Government cannot force them on how to use their money. "This government is rooted on the rule of law and if we see any action in the contrary, we shall not hesitate to stop it,'' Aondoakaa said at the Federal High Court, Abuja.

Besides, the AGF said, the conditions attached to the payment for the contract through deductions from the Federation Account was unconstitutional.

The comprehensive health centres, which were to be built in each of the 774 local government areas, were meant to be contractor-financed. Messrs Mathan Nig. Ltd was to be paid through direct deduction from the monthly allocation due to the local governments.

Aondoakaa maintained that there was no provision in law that supported deduction of fund due to any level of government directly from the Federation Account.

The minister urged Justice Mustapha Umar to entertain a fresh preliminary objection he filed challenging the jurisdiction of the court to entertain the case.

Counsel to the plaintiff, Chief Adegboyega Awomolo (SAN), said that the fresh objection raised by the AGF was an abuse of the process of court.

Awomolo said a counsel from the office of AGF, Mr Aikhunegbe Malik, had raised the same objection in February and was over-ruled by the court.

This new objection is an invitation to the court to either review its ruling or sit as an appellate court over its previous decision,'' Awomolo said.

He prayed that the fresh objection be struck out and the substantive case continued, arguing that no court sat as an appellate court over its own decision or a decision by a court of coordinate jurisdiction.

Aondoakaa urged the court to adjourn the case till July 24 for his reply on the issues raised by Awomolo and his request was granted.

Mathan filed the action praying, among other reliefs, an order setting aside the Dec. 10, 2007 decision of the National Economic Council revoking the contract.