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Tag: Dr. Maikanti Baru

  • NNPC assures of hitch-free products supply during festive period

    NNPC assures of hitch-free products supply during festive period

    As the festive periods draw near, the Nigerian National Petroleum Corporation (NNPC) has assured that it would ensure a hitch-free supply of petroleum products nationwide.

    Group Managing Director of the Corporation, Dr. Maikanti Baru, who made the commitment Tuesday during the inauguration of the Board of Directors of the Petroleum Products Marketing Company, PPMC, a subsidiary of the NNPC, charged that the Company must ensure steady supply of petroleum products even well beyond the festive periods hitherto often characterized by supply hiccups.

    “The festive season is fast approaching, a period when almost always, people expect queues to happen. If last year you had a queue-free festive season, we want this year’s to be a season where fuel station attendants will be inviting motorists to their stand for fueling”, the GMD charged.

    Baru prodded PPMC Management to re-strategized to ensure leaner operating cost that would enable it continuously add value to the NNPC Corporate entity, adding that the company was not expected to make losses.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement yesterday.

    Also speaking at the occasion, Chief Operating Officer, COO, Downstream, and alternate Chairman of the Board, Engr. Ikem Obi, declared the downstream was the face of NNPC, assuring that the country would never return to the era of products scarcity.

    On his part, the Managing Director of the Company, Engr. Umar Ajiya, thanked the GMD for his commitment and support especially the resuscitation of depots in parts of the country, which he noted had contributed immensely to the steady supply of products nationwide.

    He assured that the company would be placed on the part of profitability, adding that other petroleum products would equally be made available alongside PMS (petrol).

    The Petroleum Products Marketing Company, PPMC, is one of the three new companies that emerged from the old Pipelines and Products Marketing Company (PPMC) after the recent reorganization of the NNPC. It is mainly saddled with marketing of petroleum products.

    The other two companies are the Nigerian Pipeline and Storage Company (NPSC); and Marine Logistics. While NPSC is charged with the responsible of managing storage and distribution assets of the Corporation, Marine Logistics executes petroleum products haulage for the NNPC.

  • How social media forced NNPC, NASS to cancel dinner

    How social media forced NNPC, NASS to cancel dinner

    Public opinion and criticism on Tuesday compelled the members of the National Assembly to turn down the invitation to a dinner that the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru had extended to them.

    The “special dinner”, which was scheduled to hold at 7.00pm in Congress Hall of the Transcorp Hilton, Abuja, was eventually cancelled.

    The invitation card which however went viral on the social media as from mid-day yesterday provoked negative reactions raising questions about the propriety of the NNPC boss who is under investigation concerning the memo that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu wrote to President Muhammadu Buhari. 

    A source in the National Assembly who pleaded anonymity yesterday said that “the Senate Committee on Petroleum (Upstream) had to reject the invitation because of  the negative reactions it was generating in the social media.”

    Our Abuja correspondent, who went to confirm from the venue at 6:00pm met the Congress Hall locked and without sign of preparation for any dinner.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who confirmed the circulation of the invitation card, told The Nation that the aborted dinner was part of the ongoing stakeholders’ engagement that the corporation commenced since March this year.

    He noted that NNPC called off the dinner which coincided with Buhari’s the dinner for the National Assembly members .

    His words: “You know  we have been having stakeholders’ engagement since March. We invited you to Nicon Luxury, isn’t it ? We started in March with publishers in Abuja which was well attended. 

    “And it was to be followed by that of the National Assembly : House of Reps and Senate. And to be followed by correspondents in Abuja which was held in Nicon Luxury. But members of the National Assembly Petroleum Committee, both chambers said the were going on recess it wasn’t convenient for them. 

    “Which date was convenient, they said ok let’s put it in May. In May, GMD was bereaved, he lost three of his relatives. We moved it to Salah period, Salah period, they said they were going in recess. 

    “This time around, they chose October 31, (today). But unfortunately, the President will be engaging them to a dinner. So, they said they will be going to that of the President.   

    “So for somebody to wake to say it is for probe or no probe, only God knows that it would have been done since March.”

  • $25bn contract: Senate postpones probe of NNPC GMD

    $25bn contract: Senate postpones probe of NNPC GMD

    The Senate Tuesday postponed the planned probe of the Group Managing Director (GMD), Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, over alleged award of $25 billion contract without due process.

    The upper chamber also resolved to investigate Baru over alleged insubordination and abuse of office as contained in the Minister of State, Petroleum Resources, Mr. Emmanuel Ibe Kachikwu leaked letter to President Muhammadu Buhari.

    Deputy Senate President, Senator Ike Ekweremadu who announced the postponement, said that the investigation will now commence next Tuesday.

    The investigative panel to be chaired by Senator Aliyu Wamakko ought to have started Tuesday.

    Ekweremadu who presided over the plenary did not give any reason for the sudden postponement.

    Sources said that the court case praying the court to stop the Senate from conducting the investigation might have been the reason for the shift.

    Senate President, Abubakar Bukola Saraki constituted the adhoc panel last week following a resolution of the Senate and public outcry over the award of the alleged shady contract.

    The committee was given four weeks to submit its report.

    A source said that earlier meeting scheduled last week by the chairman, Wammako, was also called off at the last minute.

    Wamakko is yet to address the press about the modalities his committee would adopt to conduct the investigation.

    Kachikwu’s letter, addressed to President Buhari was leaked to the press last two weeks.

    In the memo, Kachikwu alleged lack of due process in the award of contract valued at over $25 billion by NNPC.

    In the August 30, 2017 letter, Kachikwu attributed the slow growth in the oil and gas sector to illegal practices by the departments and agencies under his ministry, especially the Nigerian National Petroleum Corporation (NNPC) headed by the GMD of Baru.

    He told President Buhari that the country’s petroleum industry would have recorded tremendous progress, but for Baru’s alleged inaction.

    Kachikwu who also presented five prayers to the President to save the oil sector from collapse, said he was always being blocked from seeing the President. He said he was disturbed that $25 billion contracts were awarded by Baru without his input and that of the board.

  • Award of $25 billion contracts: Baru violated NNPC Act, says Falana

    Award of $25 billion contracts: Baru violated NNPC Act, says Falana

    Activist-lawyer Femi Falana (SAN) has said that the defence of the Group Managing Director (GMD), Dr. Maikanti Baru, that he has powers to award contracts to the exclusion of the Minister of State in the Ministry of Petroleum Resources and the board of the Nigerian National Petroleum Corporation (NNPC) is illegal and violates the NNPC Act.

    Falana contended that the defence of Dr. Baru failed to recognise of the provision of Section 6 (c) of the NNPC Act, which has vested the Board of the NNPC with the exclusive power to”enter into contracts or partnerships with any company, firm or person which in the opinion of the Corporation will facilitate the discharge of the said duties under this Act.”

    Falana stated this in a statement issued in Lagos yesterday titled, “NNPC operates outside the law” in reaction to the on-going face-off between the minister and the GMD of the corporation, Dr. Maikanti Baru over the unilateral award of $25 billion contracts by the latter.

    The lawyer also noted that Dr. Baru failed to respond to the unilateral appointments of key staff in the NNPC without the approval of the Board of Directors, pointing out that since this particular allegation was not denied, it is reasonable to conclude that it is admitted by the NNPC management, even though the appointments in question were made in utter violation of the Federal Character Commission Act.

    Notwithstanding the report that the Presidency has thrown its weight behind the NNPC GMD in the face-off with the Minster, Falana stressed the need to review the matter within the ambit of the law.

    On the management of the NNPC and contract awards, Falana said: “For the avoidance of doubt, Section 1 (2) of the NNPC Act states that the affairs of the Corporation shall be conducted by the Board of Directors of the Corporation. Since it is conceded by Dr. Baru that some contracts are subject to the approval of either the Board or the Federal Executive Council, he is yet to inform the Nigerian people who approved the $25 billion contracts.

    “It is pertinent to state, without any fear of contradiction, that by virtue of Section 3 of the NNPC Act, the GMD as the chief executive of the Corporation, shall be responsible for the execution of the policy of the Corporation and the day to day running of the Corporation’s activities and its associated services. But, contrary to the erroneous impression conveyed by the management of the NNPC, there is no conflict whatsoever between the provisions of the NNPC Act and the Public Procurement Act, 2007 to justify the usurpation of the powers of the NNPC Board by the Tenders Board of the NNPC headed by the GMD. Therefore, the unilateral award of multi-billion dollar contracts in the NNPC by Dr. Baru or the Tenders Board is illegal, null and void in every material particular.

    “With respect, the totality of Dr. Baru’s defence was anchored on the mistaken belief that the NNPC Act does not require him to report to the Minister of State but to President Buhari in his capacity as the Minister of Petroleum Resources.

    “Dr. Baru must have forgotten that upon the removal of Dr. Kachikwu as the NNPC GMD in 2016, the President appointed him as the Chairman of the reconstituted Board of the NNPC in line with Section 3 of the NNPC Act. Therefore, the decision of Dr. Baru to by-pass the Chairman of the Board in the award of the contracts and appointment of NNPC staff cannot be justified either under the NNPC Act.”

    Falana contended that “since Dr. Kachukwu was not removed as the Chairman of the Board, the President ought not to have encouraged Dr. Baru to treat him with such pompous disdain and arrogance”.

    He argued that the impression given by Dr Baru that once the President was briefed with respect to the award of the contracts, that due process had been observed in the award of the $25 billion contracts in line with the PPA was misleading.

    He maintained that such a position was neither backed by the NNPC Act nor the PPA. He said the competent authorities that have the final say in the award of contracts and disposal of public assets under the current political dispensation are the Bureau of Public Procurement (BPP) and the National Council of Public Procurement (NCPP).

    “The NCPP is not chaired by the President, but by the Minister of Finance. The other members of the NCPP include some officials of the Federal Government and representatives of relevant professional bodies and civil society organisations.

    “Apart from constituting the NCPP and the BPP   the President has not been empowered to approve any contract whatsoever. In fact, there is no reference whatsoever to the Federal Executive Council in the entirety of 61 sections of the PPA. To that extent, the FEC presided over by the President cannot approve the award of contracts which is the exclusive duty of the NCPP and BPP.

    “Although the PPA was enacted in 2007, the President or the Federal Executive Council (FEC) has  been approving multi-billion dollar or naira contracts, albeit illegally.

    The activist lamented that the Buhari administration, which has loudly undertaken to fight corruption, has ignored calls from many civil society organisations to set up the NCPP.

    He said since neither the President nor the Federal Executive Council was competent  to approve the award of contracts under the PPA the claim of the NNPC GMD that the controversial contracts were approved by the President could not be justified under the PPA.

    To avoid a situation whereby the $25 billion contracts and others being awarded by the Buhari administration are annulled and set aside on the grounds that they were awarded by either the President or the FEC without any legal authority, Falana counseled  President Buhari to constitute the  NCPP without any further delay.

    “If this call is ignored, once again, the civil society anti-corruption bodies ought to approach the Federal High Court for a writ of mandamus to compel the President to inaugurate the NCPP,” he said.

    He also noted that apart from breaching the NNPC Act and PPA, the NNPC had conveniently ignored the National Extractive Industries Transparency Initiative Act and had refused to comply with the directive of the NEITI to remit $21.7 billion and N376 billion illegally withheld from the Federation Account.

    Though Dr. Kachukwu recently disclosed that the nation had lost $60 billion due, he noted that the NNPC has refused  to recover same by implementing the provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act and instead of directing the NNPC to recover and remit the huge fund  to the Federation Account, the Federal Government was busy piling up external loans.

    He also noted that the NNPC does not subject its budgets to the National Assembly for appropriation as stipulated by the Constitution and the Fiscal Responsibility Act.

    H recalled that shortly before proceeding on its annual vacation, the Senate disclosed that the NNPC and 33 other agencies of the Federal Government had failed to submit their 2017 budget to the National Assembly but that  the NNPC management ignored the disclosure knowing that the Senate would not pursue the matter.

    Falana contended that  Dr.Ibe Kachukwu owed it a duty to the country to react to the allegation of the management of the Nigerian National Petroleum Corporation (NNPC) that he engaged in the unilateral award of multibillion dollar contracts during his tenure as Group Managing Director (GMD).

    He remarked that even if the allegation of the NNPC GMD against the minister is true,  it cannot justify what he described as the reckless impunity that has characterized the management of the affairs of the NNPC since 1999.

    He contended however that the allegations and counter-allegations of Dr. Kachukwu and Dr. Baru over contract awards had reinforced his earlier call on President Muhammadu Buhari to relinquish the post of the Minister of Petroleum Resources and appoint a full-fledged minister to run and coordinate the affairs on the oil and gas industry in strict compliance with the law.

    He said the board of the NNPC should be reconstituted by reducing its present membership from nine to six persons as provided for by Section 1(2) of the NNPC Act.

  • Award of contract: Baru violates NNPC Act, says Falana

    Award of contract: Baru violates NNPC Act, says Falana

    Activist lawyer, Femi Falana (SAN) has said that the defence of the Group Managing Director (GMD), Dr. Maikanti Baru that he has powers to award contracts to the exclusion of the Minister of State in the Ministry of Petroleum Resources and the board of the Nigerian National Petroleum Corporation (NNPC) is illegal and violates the NNPC Act.

    Falana contended that the defence of Dr. Baru failed to take cognizance of the provision of section 6 (c) of the NNPC Act which has vested the Board of the NNPC with the exclusive power to”enter into contracts or partnerships with any company, firm or person which in the opinion of the Corporation will facilitate the discharge of the said duties under this Act.”

    Falana stated this in a statement issued in Lagos Wednesday titled, “NNPC operates outside the law” in reaction to the on-going face-off between the minister and the GMD of the corporation, Dr. Maikanti Baru over the unilateral award of $25 billion contracts contract awards by the latter.

    The lawyer also noted that Dr. Baru failed to respond to the unilateral appointments of key staff in the NNPC without the approval of the Board of Directors pointing out that since this particular allegation was not denied, it is reasonable to conclude that it is admitted by the NNPC management, even though the appointments in question were made in utter violation of the Federal Character Commission Act.

    Notwithstanding the report that the presidency has thrown its weight behind the NNPC GMD in the face off with the Minster of State in the Petroleum Ministry, Falana stressed the need to review the matter within the ambit of the law.

    On the management of the NNPC and contract awards, Falana further argued, “for the avoidance of doubt, section 1 (2) of the NNPC Act states that the affairs of the Corporation shall be conducted by the Board of Directors of the Corporation. Since it is conceded by Dr. Baru that some contracts are subject to the approval of either the Board or the Federal Executive Council he is yet to inform the Nigerian people who approved the $25 billion contracts.

    “It is pertinent to state, without any fear of contradiction that by virtue of section 3 of the NNPC Act the GMD as the chief executive of the Corporation shall be responsible for the execution of the policy of the Corporation and the day to day running of the Corporation’s activities and its associated services. But contrary to the erroneous impression conveyed by the management of the NNPC there is no conflict whatsoever between the provisions of the NNPC Act and the Public Procurement Act, 2007 to justify the usurpation of the powers of the NNPC Board by the Tenders Board of the NNPC headed by the GMD. Therefore, the unilateral award of multi-billion dollar contracts in the NNPC by Dr. Baru or the Tenders Board is illegal, null and void in every material particular.

    “With respect, the totality of Dr. Baru’s defence was anchored on the mistaken belief that the NNPC Act does not require him to report to the Minister of State but to President Buhari in his capacity as the Minister of Petroleum Resources.

    “Dr. Baru must have forgotten that upon the removal of Dr. Kachikwu as the NNPC GMD in 2016, the President appointed him as the Chairman of the reconstituted Board of the NNPC in line with section 3 of the NNPC Act. Therefore, the decision of Dr. Baru to by-pass the Chairman of the Board in the award of the contracts and appointment of NNPC staff cannot be justified either under the NNPC Act”.

    Falana contended, “Since Dr. Kachukwu was not removed as the Chairman of the Board, the President ought not to have encouraged Dr. Baru to treat him and with such pompous disdain and arrogance”.

    He argued that the impression given by Dr Baru that once the President was briefed with respect to the award of the contracts, that due process has been observed in the award of the $25 billion contracts in line with the PPA was misleading.

    He maintained that such position is neither backed by the NNPC Act nor the PPA. He said the competent authorities that have the final say in the award of  contracts and disposal of public assets under the current political dispensation are the Bureau of Public Procurement (BPP) and National Council of Public Procurement (NCPP).

    “The NCPP is not chaired by the President but by the Minister of Finance. The other members of the NCPP include some officials of the federal government and representatives of relevant professional bodies and civil society organizations.

    “Apart from constituting the NCPP and the BPP   the President has not been empowered to approve any contract whatsoever. In fact, there is no reference whatsoever to the Federal Executive Council in the entirety of 61 sections of the PPA. To that extent, the FEC presided over by the President cannot approve the award of contracts which is the exclusive duty of the NCPP and BPP.

    “Although the PPA was enacted in 2007 the President or the Federal Executive Council (FEC) has  been approving multi-billion dollar or naira contracts, albeit illegally.

    The activist lamented that the Buhari administration which has loudly undertaken to fight corruption has ignored calls from many civil society organizations to set up the NCPP.

    He said since neither the President nor the Federal Executive Council is competent  to approve the award of contracts under the PPA the claim of the NNPC GMD that the controversial contracts were approved by the President cannot be justified under the PPA.

    To avoid a situation whereby the $25 billion contracts and others being awarded by the Buhari administration are annulled and set aside on the grounds that they were awarded by either the President or the FEC without any legal authority, Falana counseled President Buhari to constitute the NCPP without any further delay.

    “If this call is ignored, once again, the civil society anti-corruption bodies ought to approach the Federal High Court for a writ of mandamus to compel the President to inaugurate the NCPP”, he said.

    He also noted that apart from breaching the NNPC Act and PPA, the NNPC has conveniently ignored the National Extractive Industries Transparency Initiative Act and has refused to comply with the directive of the NEITI to remit $21.7 billion and N376 billion illegally withheld from the Federation Account.

    Though Dr. Kachukwu recently disclosed that the nation had lost $60 billion due,  he noted that the NNPC has refused  to recover same by implementing the provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act and instead of directing the NNPC to recover and remit the huge fund  to the Federation Account the Federal Government is busy piling up external loans.

    He also noted that the NNPC does not subject its budgets to the National Assembly for appropriation as stipulated by the Constitution and the Fiscal Responsibility Act.

    H recalled that shortly before proceeding on its annual vacation, the Senate disclosed that the NNPC and 33 other agencies of the federal government had failed to submit their 2017 budget to the National Assembly but that the NNPC management ignored the disclosure knowing that the Senate would not pursue the matter.

    Falana contended that  Dr. Ibe Kachukwu owe it a duty to the country to react to the allegation of the management of the Nigerian National Petroleum Corporation (NNPC) that he engaged in the unilateral award of multi -billion dollar contracts during his tenure as Group Managing Director (GMD).

    He remarked that even if the allegation of the NNPC GMD against the minister is true,  it cannot justify what he described as the reckless impunity that has characterized the management of the affairs of the NNPC since 1999.

    He contended however that the allegations and counter-allegations of Dr. Kachukwu and Dr. Baru over contract awards have reinforced his earlier call on President Mohammadu Buhari to relinquish the post of the Minister of Petroleum Resources and appoint a full-fledged Minister to run and coordinate the affairs on the oil and gas industry in strict compliance with the law.

    He reiterated that the board of the NNPC should also be reconstituted by reducing its present membership from nine back to sixpersons as provided for by section 1(2) of the NNPC Act.

  • Presidency backs Baru

    Presidency backs Baru

    • NNPC on oil deals: no process breached

    Minister of State for Petroleum Resources Ibe Kachikwu’s future was hanging in the balance yesterday.

    President Muhammadu Buhari is said to be weighing options on Dr Kachikwu’s fate, following his allegations against Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru.

    Specifically, Kachikwu alleged that Baru

    • awarded $25b contracts unilaterally;
    • ran a bravado management; and
    • made appointments without consultations.

    It was learnt that having found Baru not guilty of corrupt practices, the Presidency gave the GMD the clearance to release a fact-sheet in the matter to the public.

    Kachikwu is said to be consulting his associates, stakeholders and colleagues on his next move. He has been cautioned against any act capable of being seen as confrontational, according to a source, who pleaded not to be named because of “the sensitivity of the matter”.

    Kachikwu’s associates, it was learnt, cited the travails of ex-Minister of Petroleum Resources Prof. Tam David-West’s rough deals with the military administration of ex-President Ibrahim Babangida.

    One of the alternatives being suggested by his friends is the possibility of voluntary exit from the cabinet “to preserve his integrity”. It was not clear last night the step Kachikwu would take after it was clear that the Presidency might have backed Baru.

    The GMD of NNPC described the $25billion contract figure raised by Kachikwu as “humongous” because “no money was lost and no process has been breached.”

    The President, The Nation learnt, felt scandalised by “unfounded allegations of corruption bordering on phantom $25billion contracts”.

    The allegations allegedly attracted concerns from other nations and some oil producing countries.

    President Buhari, who is said to have felt hurt, by the development, “refused to act on the spur of the moment because his image and the reputation of his administration were involved”.

    A top government source said: “The Presidency directed the GMD of NNPC to provide facts and figures, which it got from Baru.

    “Thereafter, the NNPC Act, the NNPC Handbook and Public Procurement Act were consulted on the responses of Baru to find out if infractions were committed by the corporation.

    “Having been convinced that there were no infractions, the Presidency then directed NNPC to lay the cards on the table for Nigerians to see and judge.

    “What was uppermost in the responses of the GMD was the fact that ‘there was no evidence of sharp practices, bribery, looting of funds and diversion of transaction cash’.

    “The allegations of Kachikwu were rated as ‘wild, intentional and political in nature’ against the administration he is serving.”

    It was learnt that the President met with Kachikwu last Friday to “be fair to the Minister and for record purposes”.

    A Presidency source, who  spoke in confidence with our correspondent, said: “The President has not spoken on the next action. No one knows his mindset.”

    Yesterday’s statement by the NNPC, which  was described as  an “assault” on Kachikwu by some of his associates, fuelled minister’s thoughts on his Option B which he did not state.

    Some of Kachikwu’s confidants have, however, cautioned against any “hasty” decision, given the travails of a former Minister of Petroleum Resources, Prof. Tam David-West, during the military regime of ex-President Ibrahim Babangida.

    A highly-placed stakeholder said: “I am aware that the minister has been holding consultations and telling some vital players in the oil sector what transpired.

    “Of importance to him is the allegation of alleged plot to sabotage the government of President Buhari with the leakage of the August 20 memo. He has maintained his innocence that he did not leak the letter.

    “But it is tragic that no one believes Kachikwu’s story anymore in the Presidency.”

    The GMD yesterday dismissed the allegations of award of contracts without regard to due process as “unfounded” and “unfortunate”.

    He described the $25billion contract figure raised by Kachikwu as “humongous” because “no money was lost and no process has been breached”.

    He explained that as a former chairman of the NNPC Anti-Corruption Committee, he would be the last person to breach the procurement process by disregarding extant laws and rules.

    The GMD said the NNPC Act and the Public Procurement Act vested procurement powers in the NNPC Tenders Board, the President and the Federal Executive Council (FEC), depending on the cost threshold.

    He said the NNPC Board had no role whatsoever in the process.

    He said: “I know for those of you who are following what we are doing here, you know that there’s no money lost and no process has been breached.”

    Baru made his views known while receiving the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Francis Johnson, PENGASSAN members and members of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

    The leaders of the unions were on a solidarity visit to Baru.

    The unions’ visit came on the heels of the controversy sparked by Kachikwu’s letter to the President alleging non-adherence to due process by the Management of NNPC in some contract administration.

    Baru said: “Our contracting process is perfect and we will continue to follow the process. The NNPC Board has no role, I repeat, has no role as far as the contracting process is concerned.

    Baru said the NNPC Tenders Board was made up of the GMD as Chairman and the Group Executive Directors as members.

    On the crude term contract and the DSDP agreements, he said: “These are not contract as such; they are essentially pre-qualification of off-takers of crude oil and in the case of DSDP, of those that will take crude and give us products in return. So there is no value to them.

    “But humongous figures have been put forward mainly to incite the public, it is most unfortunate”.

    On the allegation of lop-sided promotions, the GMD asked the union leaders if their members felt disenchanted to which the unionists chorused a resounding “no”.

    He urged the union leaders to enlighten their members on the facts and encourage them to go about their duties without distraction.

    Comrade Johnson said the unions’ support for the GMD was based on his ability to walk his talk since assuming office last year.

    “The National body of PENGASSAN and all the NNPC in-house unions are here today to show our support for you. You have brought stability to the NNPC and we are happy today that staff morale is high. You were Chairman of NNPC Anti-Corruption Committee for over five years and that was what informed your appointment as GMD of NNPC. Today, all the bullets you are taking are on behalf of members of staff. We will continue to pray for you, God will continue to guide and shield you,” Comrade Johnson assured.

    The PENGASSAN President called on Nigerians to be cautious of their comments on the controversy, adding that any wrong information was capable of discouraging investors from the oil and gas industry which is the highest foreign exchange earner.

    The NNPC Group Chairman of PENGASSAN, Comrade Sale Abdullahi, who also spoke during the visit to the GMD, stated that their concern had to do with the need to protect not only the GMD but the NNPC as an institution.

    He noted that Dr. Baru had streamlined the processes and procedures in the Corporation leading to the full restructuring which was beginning to yield positive results.

    “Today, the GMD and NNPC Management receive input from staff and this gesture by Dr. Baru has given members of staff a sense of belonging. Today, our input are being implemented and we are highly motivated,” Comrade Abdullahi stated.

    Supporting these positions, the Group Chairman of NNPC NUPENG, Comrade Udofia Odudu Benjamin, said the unions would continue to pray for divine guidance for Dr. Baru and the entire NNPC management

    Earlier, the Chairman of NNPC Corporate Headquarters Chapter of PENGASSAN, Comrade Mathew Duru, reiterated the continued support of the unions for the Dr. Baru-led management.

    “We just want to tell the GMD from the bottom of our hearts that we are with him and the Top Management; that we are behind the GMD who has done very well in turning the fortunes of the Corporation around”, the union leader said.

    He said since Baru assumed office, he had succeeded in clearing the air of uncertainty that prevailed in the corporation because of visionless reforms that left NNPC on the brink of collapse.

    He also said the GMD succeeded in resolving the NNPC Pension challenge that had led to disenchantment among staff.

    He added: “We are with you. We want to let you know that you are not an orphan.”

     

  • NNPC: PENGASSAN, NUPENG rally behind Baru

    NNPC: PENGASSAN, NUPENG rally behind Baru

    Unions in the oil and gas sector on Monday pledged support for the ‘transformation stride’ of the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) Dr Maikanti Baru.

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) made the pledge in Abuja in a statement by Mr Ndu Ughamadu, NNPC Group General Manager Group Public Affairs Division.

    Read: $25bn NNPC contract: Buhari vets Kachikwu’s petition

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu had accused Baru of flouting contractual agreements, creating a fear culture in the corporation and insubordination among others.

    Ughamadu, reacting to the allegations on Monday, however, said the Minister’s allegations were not true as due process had been followed in the corporation’s various activities.

    Ughamadu said at a solidarity visit to the GMD, the National President of PENGASSAN, Mr Francis Johnson, said the unions and its members considered it appropriate to rally round Baru and the NNPC Management to pledge their support.

    ”The unions’ support for the GMD was based on his ability to walk his talk since assuming office last year.

    Baru and Kachuckwu

    ”The National body of PENGASSAN and all the NNPC in-house unions are here today to show our support for you.

    ”You have brought stability to the NNPC and we are happy today that staff morale is high. You were Chairman of NNPC Anti-Corruption Committee for over five years and that was what informed your appointment as GMD of NNPC.

    ”Today, all the bullets you are taking are on behalf of members of staff. We will continue to pray for you, God will continue to guide and shield you,” Ughamadu quoted Johnson.

    Also: $25b contracts: NNPC, Baru tackle Kachikwu

    Ughamadu said the unionist called on Nigerians to be cautious of their comments on the controversy, adding that any wrong information was capable of discouraging investors from the oil and gas industry.

    He said the NNPC Group Chairman of PENGASSAN, Mr Sale Abdullahi, who also spoke during the solidarity visit disclosed that part of the unions’ concern had to do with the need to protect not only the GMD but the NNPC as an institution.

    ”Baru had streamlined the processes and procedures in the Corporation leading to the full restructuring which was beginning to yield positive results.

    ”Today, the GMD and NNPC Management receive inputs from staff and this gesture by Dr Baru has given members of staff a sense of belonging.

    ”Today, our inputs are being implemented and we are highly motivated.”

    Other union leaders who were at the meeting to lend support were the Group Chairman of NNPC NUPENG, Udofia Benjamin and Chairman of NNPC Corporate Headquarters Chapter of PENGASSAN, Mathew Duru.

    Also speaking, Baru described the allegations of award of contracts without regard to due process as unfounded and unfortunate.

    He explained that as a former chairman of the NNPC Anti-Corruption Committee, he would be the last person to breach the procurement process by disregarding extant laws and rules.

    The GMD said both the NNPC Act and Public Procurement Act vested procurement powers on the NNPC Tenders Board, the President and the Federal Executive Council (FEC) depending on the cost threshold, stressing that the NNPC Board had no role whatsoever in the process.

    ”I know for those of you who are following what we are doing here, you know that there’s no money lost and no process has been breached.

    ”Our contracting process is perfect and we will continue to follow the process. The NNPC Board has no role, I repeat, has no role as far as the contracting process is concerned,” Baru said.

    He said the crude term contract and the DSDP agreements were not contract as such but pre-qualification of off-takers of crude oil.

    ”The case of DSDP, is of those that will take crude and give us products in return.

    ”So there is no value to them. But humongous figures have been put forward mainly to incite the public, it is most unfortunate.”

  • No informed comment on Kachikwu ‘s memo yet – ACF

    No informed comment on Kachikwu ‘s memo yet – ACF

    The Pan-Northern social-political Organisation, the Arewa Consultative Forum (ACF) said on Friday that it will not make any informed comment on the allegations levelled against the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr Maikanti Baru by the Minister of State for Petroleum, Ibe Kachikwu.

    The Forum said, however, that it was not opposed to any action taken by the government to unveil the truth needed for an informed decision in the interest of transparency.

    Secretary-General of the Forum, Anthony Sani told The Nation that the ACF does not have all the facts to be able to make any informed comment in the issue.

    He said: “ACF does not have all the facts on this matter. More so that the ministry has come out and said the letter by the Minister of State for Petroleum Resources was meant to draw attention to the need for due process in the management practices of contract award by NNPC. As a result, the forum is not in the position to make an informed comments on the issue.

    “However, given the fact that the matter is of public importance, ACF is never opposed to any actions taken by the government in order to unveil the truth needed for an informed decision in the interest of transparency.”

  • Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu on Friday kept mum over the outcome of his meeting with President Muhammadu Buhari.

    He had met behind closed doors with the President at the Presidential Villa, Abuja.

    Kachikwu, who arrived Aso Rock around 11.30a. m. left around 12:50 p.m

    He simply said “No comment” when approached by journalists as he walked out of the President’s office with the Special Adviser to the President on Media and publicity, Femi Adesina.

    The minister has alleged that $25 billion contracts have been wrongly awarded by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC),  Dr. Maikanti Baru.

    His protest was contained in a letter to the President, which somehow got leaked to the public on Tuesday.

    Apart from the Senate mandating its committee to probe the matter, the Peoples Democratic Party (PDP) had demanded for Baru’s sack.

  • Kachikwu’s petition: CSO seeks conclusion of PIGB

    Kachikwu’s petition: CSO seeks conclusion of PIGB

    The Africa Network for Environment and Economic Justice (ANEEJ), on Thursday, called on the National Assembly and President Muhammadu Buhari to conclude the passage and assent of the Petroleum Industry Governance Bill.

    A conclusion of the enactment, according to the Civil Society Organization, will forestall the reoccurrence of the issues in the oil and gas sector that the Minister of State for Petroleum, Dr Ibe Kachikwu alleged against the Group Managing Director of the NNPC, Dr Maikanti Baru in his petition to President Buhari.

    The petition was on the arbitrary award of $25 billion contracts, insubordination, among other infractions of the NNPC boss.  

    ANEEJ Executive Director, Rev. David Ugolor made the call for the enactment of the PIGB  in a statement to journalists in Abuja yesterday. 

    He applauded the Senate for moving quickly to unravel allegations of inappropriateness levelled by the Minister of State, noting that the response of Mr President concerning the allegations of disregard for due process in the award of contracts by the NNPC GM, would define the perception of the reforms which have been going on in the oil sector.

    Ugolor said that “Since the Senate has waded into the matter, we suggest that Mr President as well must invite the Nigerian Extractive Industry Transparency Initiative, NEITI, to carry out a comprehensive and forensic audit of the allegations. 

    “Among statutory functions of the NEITI include the regulation of matters related to the due process in the award of contracts in the extractive sector of the Nigerian sector.

    “We believe that the inconsistencies being thrown up by the startling revelations from the Minister of State for Petroleum Resources include some of the issues which the Petroleum Industry Governance Bill seeks to address and redress’, the Rev Ugolor has pointed out.”

    The statement noted that in anticipation of such a rift in the industry, ANEEJ anticipated wrote an online petition. 

    The statement reads in parts: “The present administration since inception has defined itself first through its corruption stance, and more by the reforms it has introduced in the oil sector. It scrapped the opaque oil swap which made it possible for individuals within government to line their pockets with millions of dollars and has replaced it with the Direct Sale, Direct Purchase scheme.

    “That lofty plan of Direct Sale, Direct Purchase stands in jeopardy if all the contracts that have been awarded and the companies they have been awarded are not subject to thorough vetting and investigations by both the Senate and the NEITI.”