Tag: Ibe Kachikwu

  • NNPC: Buhari’s silence not helping matters – CSO

    NNPC: Buhari’s silence not helping matters – CSO

    The reaction of the Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru to the Minister of Petroleum Resources, Dr. Ibe Kachikwu memo to President Muhammadu Buhari, on Tuesday, attracted its own reaction.

    Speaking with The Nation on phone, Convener, Say no Campaign, Ezenwa Mwagwu, urged Buhari, who doubles as the substantive Minister of Petroleum Resources to make clarifications on the ranging war of words in the NNPC over award of contract, insubordination and sidelining of Kachikwu from the scheme of things.

    According to him, Buhari should confirm whether Baru presented the report to him and also awarded the contract within the threshold that the Federal Executive Council allowed.

    The member of the Civil Society Organization said that since the president promoted Kachikwu to become the Minister of State for Petroleum Resources, the latter has become irrelevant in the oil and gas industry.

    Ezenwa noted that all the powers in the industry now reside with Buhari and Baru, while Kachikwu is only an onlooker.

    He said that “I think the intervening power of the substantive Minister of Petroleum Resources, (Buhari), who has the responsibility to clear the air on most of the issues.

    Stressing that the issues are about procurement, the activist noted that some critics may have veered of the point to conclude that money is missing.

    Ezemwa submitted that it may not necessarily mean that money is missing.

    He explained that “The issues are around procurement- who has the right to do what. The country is waiting for Buhari to intervene to put an end to the conversation.

    The people talking about money missing have already missed the point because it is about contract award and not necessarily money.”

    He said that: “The silence of the minister (Buhari) has not assisted in putting an end to that rivalry . I know that the BPP has intervened to say issues about procurement and contracts. The minister (Buhari) himself should also come out and state categorically what all of this means.

    “The power is with the GMD and the minister. Having promoted him out of relevance do you still think he has some power? That is why I am asking the substantive minister of petroleum to put an end to the conservation by stating whether him and the Federal Executive Council operated within the threshold that Baru talked about.”

    He said that he submitted the report the minister and Kachikwu is not the minister. He (Buhari) should tell us and his silence is not helping matters.”

    Meanwhile, the Executive Director, Africa Network for Environment and Economic Justice (ANEEJ), Rev. David Ugolor, said that Baru acted with the support of the president, who has refused to react to the issue.

    The advocate of good governance in the oil and gas industry added that Baru “acted with the backing of Mr. President. It wouldn’t have ever happened.”

    According to him, it is unfortunate that Kachikwu has not realized that it is time for him to resign.

    Ugolor said that “Now, he (Kachikwu) has not only been deeply embarrassed but he has also been deeply insulted.”

    He recalled that what happened to the secretary of the NNPC in Jonathan’s administration, Dr. Yinka Omoruke was summarily dismissed by the former Minister of Petroleum Resources, Mrs. Diezani Alison Madueke is now repeating itself.

    The minister had overwhelming influence in the government but now the NNPC boss is wielding the power.

    Ugolor noted that Kachikwu is protecting the interest of the citizenry but doubted whether Nigerians will be there for him when he is facing the music.

    He urged Nigerians to take their destiny into their hands, noting that “if they think that Buhari is going to rescue them, they (Nigerians) are on their own. This is not the first, not the third and not the last, they should not expect any miracle from President Buhari.”

  • 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.”

     

  • Workers urge funding of NNRA with 2% oil proceeds

    Workers urge funding of NNRA with 2% oil proceeds

    The staff of the Nigeria Nuclear Regulatory Authority (NNRA) have called on the Federal Government to earmark 2% of crude oil proceeds for the funding of the activities of the authority.

    The NNRA chapter of the Petroleum and Natural Senior Staff Association of Nigeria (PENGASSAN), Chairman, Ifreke Udeme, made this request during the second Triennial Branch Conference in Abuja.

    Its theme was “NNRA: Regulatory Responsibilities for Increased Performance viz-a-vis Safety, Security and Safeguards for Radioactive Substances.”

    He explained that although the activities of the authority are mainly in the oil and gas industry, yet it has been underfunded from inception.

    Udeme said that the National Assembly, the governing board of NNRA, PENGASSAN and NUPENG can jointly work towards earmarking 2% of oil and gas proceeds for the funding of the authority’s activities. 

    He said that: “The activities of the NNRA, 90% of it is in the oil and gas industry. We licensed the sources and we conduct well logging and this cuts across the oil and gas industry.so the proceeds from there, a percentage of it with a legislature should be used to fund the NNRA for its activities. 

    “One percent or two percent of the proceeds can fund the activities of the NNRA vis and vis the directive of government that we should exit the federation appropriation by 2020. 

    “We have to collaborate with the relevant stakeholders; the NNRA governing board, the National Assembly and the management of NNRA’ PENGASSAN and NUPENG to be able to achieve this. 

    “The NNRA is grossly underfunded right from inception. And the National Assembly together with our legal unit can sit down and work out the areas that we can achieve this: the activities  in the oil and gas industry from seismic activities to exploration to upstream or downstream, we can look at these areas.”

    Speaking, the Kaduna Zone PENGASSAN chairman, Comrade Yusuf Abubakar noted that the global economy is now diversifying from oil to other sources of energy and Nigeria can resort to nuclear.

    He appealed to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu to reposition the NNRA with its next year’s budget for it to carry out the expected development of the nuclear energy.

    The minister’s representative, who was from the Nigerian National Petroleum Corporation (NNPC), Sanusi Abdulakeem, promised to convey the demands of the association to Kachikwu.

    He said that the ministry would consider the workers’ demand for a spacious office accommodation.

    Kachikwu, however, advised them not to abuse the opportunity that the Director-General, Prof Lawrence Dim has allowed them to unionize.

    The Deputy General Manager, Katsina Zone of the association, who represented Dim admonish the union to take the results of the Congress election in good fate. 

    A member representing Akoko Edo Federal Constituency in the House of Representatives, Comrade Peter Akpatason, promised the support of the lawmakers for whatever bill the NNRA may present to the lower chamber.

  • Kachikwu’s claims on oil contracts unfortunate – NNPC

    Kachikwu’s claims on oil contracts unfortunate – NNPC

    The Nigerian National Petroleum Corporation (NNPC) on Monday dismissed as untrue claims by the Minister of State for Petroleum, Dr. Ibe Kachikwu, that he was never involved in the award of major crude oil contracts in the country.

    NNPC said in a statement the minister was expressly consulted by its Group Managing Director (GMD), Dr. Maikanti Baru,  and his recommendations taken into consideration in the crude oil contracting process.

    It also described Kachikwu’s instance that major contracts were never reviewed or discussed with him as “mostly unfortunate.”

    NNPC stressed that all it required to award a contract in the oil and gas sector was the approval of the Tenders Board and not the minister’s endorsement.

    The state oil company’s response followed the report of alleged lack of adherence to due process in the award of contracts by Kachikwu in his August 30 letter to President Muhammadu Buhari.

    The minister had claimed that several major contracts were never reviewed or discussed with him and the NNPC Board.

    The President had since ordered Baru and the entire management team of the Corporation to respond expeditiously to the allegations.

    The statement reads: “It is important to note from the outset that the law and the rules do not require a review or discussion with the Minister of State or the NNPC Board on contractual matters. What is required is the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum, or the Federal Executive Council (FEC), as the case may be. There are therefore situations where all that is required is the approval of the NNPC Tenders Board, while in other cases, based on the threshold, the award must be submitted for presidential approval. Likewise, in some instances it is FEC approval that is required.

    “It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10billion and $5billion respectively placed on them in the claim of Dr. Kachikwu. It is therefore inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts above NNPC Tenders Board limit. They are merely the shortlisting of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms. These transactions were not required to be presented as contracts to the Board of NNPC and, of course, the monetary value of any crude oil eventually lifted by any of the companies goes straight into the federation account and not to the company.

    “Furthermore, contrary to the assertion of Dr. Kachikwu that he was never involved in the 2017/2018 contracting process for the Crude Oil Term Contracts, Dr. Kachikwu was in fact expressly consulted by the GMD and his recommendations were taken into account in following through the laid down procedure. Thus, for him to turn around and claim that ‘these major contracts were never reviewed or discussed with me’ is most unfortunate to say the least.”

  • We don’t need minister’s approval to award contract – NNPC

    We don’t need minister’s approval to award contract – NNPC

    The Nigerian National Petroleum Corporation (NNPC) said on Monday that all it required to award a contract was the approval of the Tenders Board and not the minister’s endorsement.

    The Corporation said in statement that the clarification followed the publication of alleged lack of adherence to due process in the award of contracts  by the Minister of State for Petroleum, Dr. Ibe Kachikwu, in his August 30 letter to President Muhammadu Buhari.

    The minister had claimed that “several major contracts were never reviewed or discussed with him and the NNPC Board.”

    The President had since ordered the Group Managing Director (GMD) of the NNPC, Dr. Maikanti Baru and the entire management team of the Corporation to respond expeditiously to the allegations.

    The statement reads: “It is important to note from the outset that the law and the rules do not require a review or discussion with the Minister of State or the NNPC Board on contractual matters. What is required is the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum, or the Federal Executive Council (FEC), as the case may be. There are therefore situations where all that is required is the approval of the NNPC Tenders Board, while in other cases, based on the threshold, the award must be submitted for presidential approval. Likewise, in some instances it is FEC approval that is required.

    “It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10billion and $5billion respectively placed on them in the claim of Dr. Kachikwu. It is therefore inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts above NNPC Tenders Board limit. They are merely the shortlisting of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms. These transactions were not required to be presented as contracts to the Board of NNPC and, of course, the monetary value of any crude oil eventually lifted by any of the companies goes straight into the federation account and not to the company.

    “Furthermore, contrary to the assertion of Dr. Kachikwu that he was never involved in the 2017/2018 contracting process for the Crude Oil Term Contracts, Dr. Kachikwu was in fact expressly consulted by the GMD and his recommendations were taken into account in following through the laid down procedure. Thus, for him to turn around and claim that ‘these major contracts were never reviewed or discussed with me’ is most unfortunate to say the least.

     

  • Kachikwu’s letter sparks  something sinister

    Kachikwu’s letter sparks something sinister

    In the days ahead, officials of the Muhammadu Buhari presidency, like many other analysts, will be tempted to focus almost exclusively on the contents of the August 30th letter written to the president by the Minister of State for Petroleum Resources, Ibe Kachikwu. The letter accuses the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, of insubordination and bureaucratic misconduct. It is possible the NNPC boss will be found guilty of some or all the allegations levelled against him. It is also possible that the infractions listed against him may be of such tameness that he and his accusers could get away with only a slap on the wrist. But overall, the outcome of any discussions or investigations apparently being conducted by both the president and Vice President Yemi Osinbajo, is not certain. For now, until the investigations are concluded, it is pointless examining the content and severity of the infractions allegedly committed by Dr Baru.

    The temptation to focus only on the contents of the letter should be resisted. What is far more important and weighty is to focus on why a letter written to the president in late August, and should have been delivered not later than early September, should receive no attention until the first week of October, and only after someone leaked it to the media. The allegations are so weighty and disturbing that the letter should have received immediate attention once it got to the president’s table. If it becomes established that the letter indeed got to the president — and there is no reason it should not have got to him if the presidency has not become dysfunctional — it would even be far more worrisome to know that the president treated the letter with the idiosyncratic casualness many Nigerians attach to him when he is discomfited by the public censure that accompanies his misconceived or misplaced policies.

    Unlike the scandals that have engulfed both the Secretary to the Government of the Federation (SGF) Babachir David Lawal and the National Intelligence Agency (NIA) director general, Ayodele Oke, it is impossible for the president to limit himself to the usual squirming he has become accustomed to when some of his top appointees are accused of malfeasance. In October 2016, Mr Lawal had first been accused by national lawmakers of feeding fat on contracts meant to bring succour to internally displaced persons in the Northeast. By December, the controversy over the SGF’s conduct was deafening. In January of the following year, the government hastily cleared him of any wrongdoing after what looked like an investigation. Because the noise did not die down, however, the government was forced to take a closer and second look at the allegations, and the SGF was eventually suspended in April. The president feigned disinterest in the scandal, travelled abroad on May 7 for a second medical attention in the United Kingdom, and seemed justified to leave the matter in abeyance. But he returned on August 19 and has yet to find a closure that satisfies justice and morality.

    The Kachikwu letter, however, strikes at the heart of the Buhari presidency, particularly its awkward and contradictory image as a reformist government. The letter is both denotative and connotative of the temper and philosophy of the Buhari presidency, and of the worldview and fundamental character of the president himself. It does not just insinuate that gross and unforgivable bureaucratic malfeasances were committed by a government appointee, much of it deliberate and orchestrated, it also quite clearly infers disturbing connivance at the highest echelons of government and an inexplicable and probably contemptuous foot-dragging at the presidency. This is why it is deeply troubling. That the president has suddenly woken up more than one month after Dr Kachikwu wrote him a letter does not absolve him and his aides of dereliction of responsibility.

    While the president and vice president in their interactions with the accused and the accuser are free to establish the accuracy or otherwise of the allegations, it is far more important for Nigerians to establish a few other salient facts. The first is whether the president received the letter or not. If he did not, then it is necessary to find out who held the letter up, because there must be consequences. But if the president got it, he needs to explain why he ignored it for over a month, for surely he can’t feel so unperturbed as to think that for so weighty a letter, acting with dispatch was needless, or that his office is too indpendent and too powerful not to owe those who elected him an explanation. Indeed, by acting frantically after the letter was leaked, the president seemed to indicate that he was not devoid of a sound assessment of the weightiness of the contents. In addition, the president and his aides must not go away with the impression that all they need to do is find common ground between the accuser and the accused, or rekindle esprit de corps in the NNPC. Terrible infractions have allegedly been committed. They must not only be explained and blames and punishments apportioned, the presidency must also recognise that the accusations indicate that so much is wrong with the running of government, particularly under the Buhari presidency, and ethnic and regional biases have become accentuated.

    The Kachikwu letter exemplified the author’s deep frustrations, perhaps frustrations other similarly excluded cabinet members share. By penning such vigorous and specific allegations against Dr Baru, the Minister of State appears to have resigned himself to whatever consequences his feistiness might attract. The letter not only exposed alleged wrongdoings in the NNPC, some of them truly mindboggling, it also clearly indicates that the author’s position cannot be rendered worse or more prostrate than he already was. Outflanked, outgunned and outmanoeuvred, Dr Kachikwu appears to know he was throwing his last dice. That throw would make or mar him. Should the president resolve this big dilemma — probably the biggest his troubled presidency has faced so far because it deals with his image — by simply doing away with both Dr Kachikwu and Dr Baru, he would not have shown himself or his presidency to be as courageous as he has constantly let out, nor the fair and just man he is cracked up to be.

    The president must accept responsibility for the scandalous allegations. He is Minister of Petroleum Resources though he does not need to be. That ex-president Olusegun Obasanjo kept the job to himself does not make combining the ministerial and presidential jobs sound or correct. Chief Obasanjo freaked everyone out, including the youths in his government, with his bizarre and frenetic work rate. It was purely animalistic adrenalin at work in him. However, there was nothing done in the ministry under Chief Obasanjo that showed he brought uncommon savvy to the job, or that he left the ministry far more organised and ethical than he met it. It was even more unwise for President Buhari to have resolved to keep the jobs of president and petroleum minister when he does not possess half the energy, exposure and attention to detail of Chief Obasanjo to do even one of the two.

    It appears that President Buhari was impervious to the rot alluded to by Dr Kachikwu, despite the two working together to manage the same ministry. The implication is that the president was neither supervising the ministry as closely as he should, nor setting the tone and philosophy by which it must be run. It meant that too many things were happening in that ministry without his knowledge, and if stories are to be believed, without his consent. It also meant, very sadly, that he was virtually an absentee minister. Otherwise, there is no way the controversial appointments that infuriated the Southeast, and the contracts mentioned by the Minister of State, could have been issued without him being in the driver’s seat. More damningly, for a president who swore to have the presence of mind needed for the top job, and who says he is above suspicion or capable of any connivance, how could the tempestuous controversy over the recent postings in the NNPC have escaped his attention? Surely he reads the news, and should have shown interest in what was shaping up into a national crisis, for the country was in a lather over the matter for weeks. It will, therefore, be taken with a pinch of salt to say the president, as Minister of Petroleum Resources, was ignorant of the ministry’s affairs. But if he knew, as seems sensible to speculate, his refusal to probe the controversy and arrest the drift when it began showed connivance.

    Dr Kachikwu was smart to have brought the matter to the attention of the president. Whoever leaked the letter to the media also did the minister a great favour. The worst punishment he can get is to be reshuffled out of the cabinet. But if it comes to that, he will leave with his reputation and dignity intact. He complained of being sidelined and treated shabbily by a subordinate. Now everyone knows it was not because he shirked a fight or was too unintelligent to understand when he was being insulted. Everyone now knows that the strange and indefensible policies and measures emanating from the ministry in the past one year or so came essentially not from him but from a shadowy group of powerful individuals.

    What is even more critical is that everyone now knows, without prejudice to the investigation of the $25bn contracts, that the widespread allegation of a cabal hijacking the Buhari presidency are unlikely to be an exaggeration. Dr Baru himself might still turn out to be a pawn on the convoluted chessboard of the so-called cabal, and Dr Kachikwu a victim. It may even be somewhat established that the Minister of State himself, going by the unsubstantiated allegations against him, might have performed less than stellar in some of his assignments, as many have suggested, but there is no question where the ultimate blame lies. The buck stops with the minister or the president. By combining the two positions less effectively than the positions demanded, President Buhari should tender an unreserved apology and relinquish the ministerial position. If a minister had proved incapable of supervising such an important ministry, he would be sacked. But how does the president sack himself? If he kept the portfolio because he could trust no one to handle it ethically, does his abdication of both responsibility and close supervision not amount to implicit assignation of the ministry to someone else?

    Except President Buhari is in denial, he must begin to appreciate that his presidency is more troubled than he seems to acknowledge. Apart from the intolerable skewness in his key appointments, probably the worst ever, he also dithers badly in tackling deep bureaucratic infractions committed by the offending appointees. And for an elected president, he has not shown any inkling that he understands what democracy, from which he has profited so extravagantly, is all about, nor demonstrated that he has a special liking for it. On top of his curious fondness for the wholesale application of force in every conflict that appears to challenge his political chauvinism, not to say his refusal to respond well to accusations of promoting ethnic exceptionalsim, it is uncertain that after the Buhari presidency, Nigerians will still recognise the democracy they thought they received in 1999.

    As Minister of State, Dr Kachikwu, was barred for an unhealthy long time from meeting or conferring with the Minister of Petroleum Resources, that is, the president. But after the letter leaked, he was summarily ushered into the president’s presence. However, it is doubtful whether the rapprochement is anything but a ruse. The Buhari presidency’s minders are too stouthearted and cabalistic to bend in accommodation. They will be incensed that the junior minister wrote the damning letter, and fly into a rage that the letter leaked. In fact, they will have no interest in mollifying him, or if they do, it will be grudgingly tokenistic. Instead, they will wait in ambush to unhorse him at an opportune time. No one has yet survived their strangulation, not even the sometimes idealistic and optimistic wife of the president, Aisha, whom members of the cabal reportedly painted in unflattering colours not too long ago, complete with a nom de guerre.

    A few weeks before the president returned home from his last medical treatment, Mrs Buhari had eulogised her husband’s newfound vigour and charisma in ecclesiastical allegories that suggested that those who held him captive would be publicly drawn and quartered on the canvass of public prayers. He would return and call his soul his own, she had enthused. Her optimism was unfortunately like a red rag to a bull. Not only are the president’s cynical captors stimulated by opposition, sometimes even deriding those who say the inflexible former army general has been held captive, they see the sanguinary consequences of war as both inevitable and indispensable. Dr Kachikwu may reap short term benefits from his potent and provocative letter, and perhaps be regaled by the president’s bucolic humour during very brief interactions, he will do well, however, to consider the anecdotal graves in which those who took on the president and thumbed their noses at his aides are interred. For if ‘the other room’ suffers from rising damp, there is no reason to think the president’s office, already scarified by rodents, cannot suffocate a daring epistolary upstart.

  • 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.”

  • Stakeholder to Buhari: Don’t ignore Kachikwu’s memo

    Stakeholder to Buhari: Don’t ignore Kachikwu’s memo

    More reactions on Thursday trailed the memo of the Minister of State for Petroleum, Dr Ibe Kachikwu to President Muhammadu Buhari alleging the unilateral award of $25billion contract by the Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr Maikanti Baru. 

    The Nigerian Extractive Industries Transparency Initiatives (NEITI) Technical Adviser, Dr Dauda Garuba urged the president to wade into the crisis because $25billion is too huge an amount to consummate its contract without due process.

    Whichever way one looks at it, $25 billion is too huge an amount to build contracts around without due process. We are supposed to be a country guided by rules and procedures. We must make Nigeria work.

    Garuba said that if it is established that there are infractions as alleged by the Minister of States for Petroleum Resources, the necessary sanctions must be deployed.

                   Related: Kachikwu protests award of $25b contracts by NNPC

    He insisted that Mr President must demonstrate that he meant business when he promised Nigerians to reform the oil sector. 

    He expressed fear that the revelation came only when there was a ray of hope that the sector was being reformed.

    Garuba, an advocate of transparency accountability in the oil and gas sector, noted insisted that sector cannot afford to reverse its reform in the last two years.

                   Trending: Ogun state owes N103b debt – Amosun

    He said that: “I must say that it is unfortunate that the Nigeria public is being unenviably treated to unpleasant developments in the oil sector. If you ask me, this is coming at a wrong time in our history. Just when we are expecting a reform of the sector so that it can deliver the country out of the wounds, we are having to deal with this. 

    “So much progress has been recorded in the reform of the oil sector in the last two years that Nigeria cannot afford to turn back the hand of the clock. I know Nigerians are yet to hear from the other side.

    “It will be fair that those who leaked the memo by the Minister of State for Petroleum Resources to President Muhammadu Buhari also live up to their sophistry in access to secret information by obliging Nigerians the response by the Group Managing Director of NNPC. President Muhammadu Buhari must step in and do the needful.”

  • Kachikwu’s letter must be thoroughly investigated – NLC

    Kachikwu’s letter must be thoroughly investigated – NLC

    The president of the Nigeria Labour Congress (NLC), Ayuba Wabba, said on Thursday that issues raised by the Minister of State for Petroleum Resources, Ibe Kachikwu, in his letter to President Muhammadu Buhari should be properly investigated in the interest of Nigerians.

    Wabba said in a chat with journalists that there should be an opportunity for Nigerians to interrogate the process and know the veracity and facts of the issues raised by the minister.

    He said the NLC has made it clear that part of the challenges facing the country is how to imbibe the process of good governance, transparency and accountability, adding that some of the issues raised in the minister’s letter bothered on good governance and accountability.

    He said: “The issue is under some investigation and I think there should be an opportunity to interrogate the process and at the end of the day, let us know the veracity and facts of the issue. We have made this issue quite clear and loud that part of our challenge is how we are able to imbibe the process of good governance, transparency and accountability.

    “Some of the issues bothered on this critical idea of ensuring that there is good governance in place. Our hope is that this issue will be thoroughly investigated and concluded at the end of the day. Let us hear what the issues are as well as the fact of the matter. Once we get the facts, we will then be able to make conclusion.

    “I am aware that the process of investigation is ongoing and I am sure that the Presidency will react appropriately since there is a communication on an issue that bothers in good governance.

    “The normal thing to be done is for the issue to be addressed through the normal process. Once this type of information is thrown to the public, the normal thing is to have a process through which these issues can be looked into.

    “I am aware that the Senate is already investigating the issue and so, the process of that investigation must be concluded so that we can have the fact and be able to make meaningful contributions. Whether the Presidency or the National Assembly, they can investigate because they have the power to do so.”

     

  • Kachikwu’s allegations: Senate to probe NNPC GMD

    Kachikwu’s allegations: Senate to probe NNPC GMD

    The Senate Wednesday resolved to investigate allegation of illegal award of $25 billion contracts leveled against Nigeria National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru.

    The upper chamber said that the weighty allegation of maleficence and shoddy dealings in the NNPC should not be swept under the carpet.

    It said that issues of abuse of due process and corruption raised by the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, against NNPC GMD in his leaked letter to the President should be thorough investigated by its special panel.

    The resolution followed the unanimous adoption of a motion entitled “Allegation of corruption against NNPC Trading: Time to conduct a holistic investigation” raised by Senator Samuel Anyanwu (Imo East).

    Senator Kabiru Marafa (Zamfara central) drew that attention of the Senate to the report of wide spread award of contracts by the NNPC GMD without regard to due process.

    Marafa in his amendment prayed the Senate to investigate the allegation against the GMD insisted that “we cannot gloss over the allegation.”

    Senator Sunny Ogbuoji (Ebonyi South) seconded the prayer.

    Senator Yusuf Yusuf (Taraba central) who also commented on the issue noted that NNPC in the past 15 years had been living above every Nigerian.

    Yusuf said, “NNPC officials believe that they are a government unto themselves. We have been asking NNPC to come with documents over alleged misuse of funds NNPC has not been able to provide any document.”

    Kachikwu in the leaked letter accused NNPC GMD of awarding $25 billion contracts without consulting either his office of the corporation’s board.

    The minister blamed the GMD for alleged insubordination, lack of adherence to due process and running a “bravado management style.”

    Kachikwu also claimed that he was being sidelined by the GMD and other heads of parastatals in major decision and appointments.

    Kachikwu said that he was disturbed that $25 billion contracts would be awarded without his input.

    He said that “The legal and procedural requirement is that all contracts above$20 million would need to be reviewed and approved by the Board of the NNPC. Mr. President in over one year of Dr. Baru’s tenure, no contract has been run through the Board. This is despite my diplomatic encouragement to Dr. Baru to do so to avoid wrongfully painting you as a President who does not allow due process to thrive in the NNPC.”

    Anyanwu in his lead debate said that the Senate should be aware that NNPC Trading limited is a business creation of the Nigeria National Petroleum Corporation

    He said that the Senate should also beware that NNPC Trading is composed of the following “outfits, Duke Oil; Hyson/Carlson (JV); NAP Oil (JV); and West Africa-Gas LTD (JV).”

    He said that he is aware that Duke Oil was incorporated in 1989 in Panama and therefore, does not pay tax in Nigeria

    He continued: “Aware also that Duke Oil was specially registered to play a dominant role in the trading of petroleum products especially crude oil trade in the international oil market several years ago;

    “Further aware that Duke Oil, compared to other major players in the sector, is still grappling with the basics of what it was registered to do in spite of massive support from the NNPC, owing to large scale corruption;

    “Aware of the decision by the current GMD to allocate almost all products to Duke Oil, this is in addition to its automatic inclusion in the lifting of Crude Oil, Gas etc, which thus, made Duke oil a money spinning outfit that is accountable only to NNPC;

    “Aware that Duke Oil remains the sole importer of AGO to PPMC and Retail, which it does through third party since it cannot import by itself, this contributes in slowing the growth of our indigenous companies that are making giant strides in the sector;

    “Aware that since NNPC owns NNPC Trading Limited and the refineries, they also shortlist companies that get allocation of products, lifting of crude oil and importation of products thus, giving undue advantage to the in house company, even where it lacks the capacity and requisite requirements to do what it is doing today;

    “Also aware of the general lack of transparency and level playing field in favour of Duke Oil to lift products without payment as against its competitors in the sector;

     “Further aware that these have combined to make Duke Oil the highest money earner and at the same time, the highest money waster because of the massive corruption in the way and manner they transact business;

    “Concerned that this relationship has helped to greatly stifle the growth of indigenous companies operating in the sector;

    “Concerned that Duke Oil lacks the requisite credentials to trade internationally, it therefore, makes Duke Oil a giant commission agent only;

    “Also concerned that the net effect of the above arrangement is that, NNPC and by extension, Nigeria earns less than otherwise it would have if the process is open and transparent where products are sold directly to indigenous international oil traders;

    “Further concerned that money so far earned by NNPC Trading limited through its subsidiaries such as Duke Oil, remains only in the knowledge of NNPC officials.”

    Anyanwu prayed the Senate to resolve constitute an ad-hoc committee to investigate the policy introduced by the current NNPC Trading Limited.

    The prayer was unanimously adopted.

    Senate President, Abubakar Bukola Saraki who did not make any comment about the motion, named former governor of Sokoto State, Aliyu Wamakko, as chairman of the panel to probe the allegations.

    Other members of the committee included Senators Tayo Alasuadura, Marafa, Albert Akpan Bassey, Anyanwu, Ahmed Ogembe, Rose Oko and Baba Kaka Garbai.