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.”
The Peoples Democratic Party (PDP) has called for the suspension of the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru.
The party warned President Muhammadu Buhari against shielding Baru and others involved in the alleged scam.
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in a leaked August 30 memo to the President, had detailed how about $25 billion contracts were illegally awarded by Baru without due process.
The party urged the President to treat Baru and others involved in the scandal the same way he treated the former National Security Adviser, Sambo Dasuki and many others involved in the $2 billion arms purchase scandal perpetrated during the last administration.
Addressing a news conference in Abuja yesterday, the National Publicity Secretary of the PDP, Prince Dayo Adeyeye charged Buhari to live above board by instituting proper investigation into the scam, with a view to prosecuting anyone found wanting.
“As a political party, we expect that the President, who prides himself as an indefatigable corruption fighter, would for once try to live above board, by genuinely allowing one of his own, accused of corruption, get properly investigated and prosecuted as a show of his impartiality in the war against corruption.
“He should do this to correct the open impression Nigerians have about his so called anti-corruption war; that it’s just a tool of persecution of perceived enemies”, Adeyeye said.
Expressing shock at the President Buhari’s silence since the humongous scandal broke out, the PDP said there are several other acts of illegality being perpetrated by officials close to the President but which are being swept under the carpet.
The PDP spokesman added: “We view the allegations levelled against Baru by Kachikwu as too grave to be swept under the carpet and we insist that the NNPC GMD must be treated like an accused who should not have the opportunity to influence investigation into his alleged misdeeds.
“In this light, we demand an immediate suspension of the NNPC GMD so that proper investigation can be carried out by the relevant anti-corruption agencies.
“Ordinarily if there was sincerity in the anti-corruption war , President Muhammadu Buhari should not have waited for any prompting before he takes a decisive action on this matter.
“But as customary with his administration, we suspect that he’s trying to shield Baru as he did for Babachir Lawal, the Secretary to the Government of the Federation (SGF) whom he merely suspended to allow the hullabaloo generated by the fraud perpetrated in the management of the emergency fund for the IDPs, die down.
“Also up till now we have never heard anything again about the millions of dollars and billions of Naira discovered at an Ikoyi apartment.
“Nigerians have not forgotten the acts of illegality and double standard perpetrated by the President in refusing to hand over Babachir Lawal to the EFCC for proper investigation and possible prosecution for graft, but rather, preferring to give the task of investigation of the open sleaze to the Vice President, in a move not known to any law of this nation.
“Even at that, the report of the Vice President Yemi Osinbajo led committee is gathering dust on the shelf of the President because he probably could not bear to see one of his closest allies punished by the laws of the land, even when all facts showed that blatant and unbridled theft was perpetrated by the president’s man”.
The PDP observed that the $2 billion arms deal scandal perpetrated under former President Goodluck Jonathan and for which many are standing trial, was less than 10 percent of the $25 billion involved in the latest NNPC scandal.
“Nigerians can now see the hypocrisy in the so called anti-corruption fight. We may as well say that the privileged class of APC members enjoy total immunity from the anti-corruption campaign.
“Tired of this double-faced corruptions fight and cover ups, we demand an immediate commencement of investigation into this latest exposed sleaze by another of President Buhari’s men.
“We have been saying this for months, that the looting of the nation’s resources under this administration is record setting in the history of this nation and we are being proven right on a daily basis by the little revelations that are being made by even those working under the administration.
“We wonder what the stench will be like when the real and hidden atrocities being perpetrated under the watch of President Buhari are finally exposed when Nigerians throw the APC government out of power in 2019”, the opposition party added.
The PDP said the sum of $25 billion involved in the latest scandal runs into over N9 trillion, which exceeds the country’s annual budget in any given year.
It added that blind looting of resources under the present administration and governance ineptitude, have been responsible for the sorry state of the economy.
Adeyeye said the $25 billion scam has confirmed PDP’s position that the All Progressives Congress (APC) led administration is in tatters, adding, “an administration without coordination, but one planted firmly in the hands of a few cabal who are stealing the nation dry while the President continues to feign ignorance of the sickening stench”
The opposition party accused the President of treating some of his cabinet Ministers with disdain while emboldening certain favoured public officials to engage in acts of impunity.
It said, “If not, how on earth can President Muhammadu Buhari justify a situation where a Minister he appointed to serve under him, presiding over an important sector like the oil sector, be turned to a mere house-help who must get clearance from some ‘outsiders’ before accessing the President?
“How on earth will a mere MD of a corporation have the temerity to sideline a Minister under whom he works and take decisions without consultation with the appropriate authority.
“How on earth could the NNPC GMD have been bold enough to sideline the entire board of NNPC and take such far reaching decisions that have grave implications on the nation’s economy alone?
“We suspect and our suspicion is reinforced by the unfolding events that powerful people at the corridors of power are tacitly involved in this.
“If the President’s powerful Chief of Staff, Abba Kyari could sit on the NNPC board and such a calamity is taking place without an eyelid being blinked, we are forced to believe that the stealing is being done to the advantage of the President who has shown by his body language that the only thing that mattered most to him for now, is his second term ambition.
“We also demand an order from the President to the Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies to immediately commence investigation into all issues of corruption levelled against Baru, as well as other persons who might have overtly or covertly participated in the illegal act”.
Commending the decision of the Nigerian Senate to investigate the scandal, the party appealed to the leadership of the Senate to prevail on its ad-hoc committee set up for the purpose of the investigation, to make its sitting open to all Nigerians so that nothing will be surreptitiously swept under the carpet.
“We say no to soft landing to corruption and corrupt members of the APC government. We say no to double standard in the fight against corruption,” the party declared.
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 tobuild 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.
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.
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.”
Products supply and distribution have received a huge boost in Oyo State and the South West region of the country, following the re-commissioning of the Ibadan Depot of the Nigerian National Petroleum Corporation (NNPC) yesterday.
Group Managing Director, Dr. Maikanti Kacalla Baru, who flagged off the resumption of loading operations at the Depot, said the re-commissioning was in fulfilment of the Presidential mandate of revamping the nation’s critical oil and gas infrastructure for the benefit of the citizenry.
“It is one of the key mandates of the present administration to revamp these abandoned assets and put them back to work for the overall security and improvement of petroleum products supply and distribution for the benefit of all Nigerians,” Dr. Baru stated.
The GMD noted that Nigeria’s energy supply security is underpinned by a robust pipeline network of over 8000km used for the transportation of crude oil, petroleum products and natural gas, of which NNPC has the largest downstream footprint with over 5,120km of pipeline network and 21 depots spread around the country.
He, however, expressed dismay that over the years, these critical national assets had become the subject of incessant vandalism, theft and sabotage which result in huge loss of revenue, lives and property as well as serious damage to the environment.
The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this disclosure in a statement yesterday.
He quoted Baru as saying that “It is rather unfortunate that any time oil pipelines and associated facilities are vandalized, our ability to supply petroleum products to the nation is hampered, and the livelihood of many law abiding people negatively impacted.”
He informed that since coming on board, the NNPC has re-streamed a number of its pipelines, leading to a massive resumption of loading operations in Depots within those areas.
Baru said NNPC had rehabilitated its System 2E (Port Harcourt to Aba), System 2D (Kaduna to Kano) and the Atlas Cove to Mosimi segment of the System 2B pipeline, which has led to the commissioning of Aba, Kano and Mosimi depots.
While noting that efforts were also underway to re-commission the remaining parts of the System 2B pipeline (Mosimi to Ore depot and from Ibadan to Ilorin depot), the GMD also announced the conclusion of rehabilitation work on the System 2E (Aba – Enugu) pipeline segment.
“Very soon, these depots will experience the impact of our collective resolve to get the critical infrastructure back on stream,” he added.
He commended the Oyo State Government for its consistent support over the years, which has immensely contributed to safeguarding NNPC’s Pipeline Right of Way (PROW) that feeds the Ibadan Depot.
Responding, the Oyo State Governor, Senator Abiola Ajimobi, described the resumption of loading operations in the area as “a great development which would have a major impact on the socio-economic well-being of Oyo people and the entire South West region.
“Today, I am happy because the resuscitation of this depot has brought about a great impact on our economic value chain which will be seen in commerce, industry and employment generation for our people” the Governor stated.
Governor Ajimobi also heaped praises on the GMD, calling him “a reformer, transformer as well as an actualiser” who has been working tirelessly to achieve the Corporation’s objectives.
“Having worked in this place as Area Manager for National Oil back in the eighties, I can tell you that this is the first time in many years that a sitting GMD is giving these facilities the attention they so much deserved,” the Governor noted.
While assuring the GMD of his support towards securing NNPC’s Pipeline Right of Way (PROW) across the state, the Governor pledged to provide vehicles for security operatives patrolling pipelines within the state.
In their separate remarks, critical downstream stakeholders of Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Tanker Drivers (PTD) and National Road Transport Owners (NARTO) all commended Dr. Baru for ensuring the re-streaming of numerous depots across the country which has led to the robust product supply and distribution across the country.
It would be recalled that in May this year, the GMD was in Kano to re-commission the Kaduna-Kano pipeline.
The Ondo State Governor, Mr Oluwarotimi Akeredolu (SAN), has said that his major priority in office is to make the state the number one destination for investors in Nigeria by the year 2020.
Speaking during the Inauguration of the board of the State Development and Investment Promotion Agency (ONDIPA) on Thursday in Akure, the state capital, Akeredolu said the state has no reason to rely on federal allocation from Abuja before she could meet her commitments to the people if the large deposits of mineral and agricultural resources in the state are well annexed.
The Governor said Nigeria spend N300bn annually on importation of bitumen despite the fact that the state has the largest deposit of bitumen in Nigeria which is processed, can reduce pressure on our naira and boost the nation’s foreign exchange.
Speaking on several investment opportunities in the state, he said he established ONDIPA to ensure that corporate organizations and businessmen and women interested in doing business in the state do their transactions without any hues.
The governor also declared that his administration has dedicated 150,000 hectares of land to boost cocoa, oil palm and cassava plantation in the State.
Akeredolu also announced that the first company for Bitumen Exploration and Processing in Nigeria would commence operation in the state before the middle of 2018.
In his word, Akeredolu said: “We are the largest producer of cocoa in Nigeria. We are the largest producer of cassava in Nigeria. We have the largest deposit of limestone in Nigeria; let me inform this gathering that Ondo has the largest deposit of bitumen in Africa and second in the world.
“I want to use this opportunity to announce to this gathering that the first company for Bitumen Exploration and Processing in Nigeria will commence operation in our state before the middle of 2018.
“We are the largest producer of oil palm and cashew nut in South West. We have dedicated 150,000 hectares of land to boost cocoa, oil palm and cassava in Ondo State. We have major cash crops; maize, rice, soya beans, citrus, plantain; coffee, cowpea; we have the highest load of granite in South-west. We have large rubber plantations in Ondo. We have oil and gas; we are the 4th largest producer of oil and gas in Nigeria, we can use gas to power electricity.
The Speaker, Ondo State House of Assembly, Rt. Hon. David Oloyeloogun (left), the Deputy Governor, Hon. Agboola Ajayi (middle) and the Governor, Oluwarotimi Akeredolu, SAN, during the launch of the Ondo State Development and Investment Promotion Agency (ONDIPA) held at the International Culture and Event Centre (DOME) – Photo credit: Maxwell Adeyemi Adeleye.
“We are also the hub of tourism. The Smoking Hills and golf resort at Ilaramokin is the largest in Nigeria and the third largest in Africa. The longest hill on the continent of Africa is here. Ebomi Lake Tourist Centre is here. The International Culture and Event Centre (DOME) where we are hosting this event is the biggest in South West.
“The popular igbo olodumare is in my town at Okeigbo and to the glory of God, the largest palace in Africa, the Olowo palace domicile here in our state. From Lagos to Akure and Akure to Lagos now take 25 minutes by air.
“We now have Air Peace flying our once moribund airport every day. Overland Airline has increased the frequency of its flight from Akure to Abuja to three times daily. I am sure many of you fly Air Peace to Akure today. So why can’t you come do business here?
“Furthermore, to ensure that inter-state movement is made easy, Ondo State just signed a memorandum of understanding with Niger/Delta Development Commission (NDDC) for the construction of 45km Araromi-Epe road to be completed before the end of 2018,” he stressed.
Assuring the investors of their safety in the state, Akeredolu said “ONDIPA means business. The mandate of ONDIPA is to ensure that private sectors have no problem doing businesses in Ondo State. Today, you do not need to go to ministries to register your business and process papers; ONDIPA will do everything for you.
“I want to assure investors that whatever Memorandum of Understanding (MoU) we sign with you will be fulfilled with sanctimonious attention. We would not compromise integrity. In three years, I want to see Ondo being the number destination of investors in Nigeria.
I want to export our cash crops and mineral resources to reduce pressure on our naira to boost our foreign exchange. My office is opened to investors. ONDIPA is open. The office of ONDIPA is even beside my office,” he stated.
Established by the House of Assembly of Assembly, (ONDIPA)is saddled with the responsibility of managing the State’s investment promotion and multilateral cooperation; structured to meet all corporate best practices to ensure seamless integration of potential investors, development partners and investments into the growth and development of the state’s economy.
The Agency, which has the Governor as its Chairman, has the Special Adviser to the Governor on Development and Investment, Mr Boye Oyewumi is to act as Vice-chairman and Chief Executive Officer (CEO).
Others members of the board of the agency are the state Commissioners of Commerce and Industry and Agriculture, the Vice-President, African Development Bank (AfDB), Mrs Cecilia Akintomide, CEO, Delta Africs, Engr. Olu Odumakinde who are both indigenes of the state.
In his speech, Oyewumi said he and his team shall be focusing on Investor and sector Targeting/Marketing, Promotion of Tourism, Business facilitation and Partnerships with Multilateral and Donor Organizations and most importantly, Management of the state economic zones aimed towards creating jobs, transfer of technology/skills, reduction of capital flight and value chain improvements, Import substitution, Industry/Economic Diversification, Infrastructure development and most significantly, Improvement of Internally generated revenue.
Oyewumi said to get the goals and objectives of ONDIPA achieved, sectors such as Agriculture, Information technology, Oil and Gas, Energy and Mining, Tourism, Manufacturing and Agro-allied industries and Transportation sectors would be prioritised.
Several investors and corporate organizations who thronged the International Culture and Event Centre (DOME) where the event took place declared their readiness to partner the state government.
An investor, Mr Yomi Adewumi who is the CEO of Investment Technology Limited, a firm specializing in Mining and Processing said his company would be investing $3m dollars in the state. He thanked Akeredolu’s administration for creating an enabling environment for investors to thrive in the state.
Present at the event was the Minister of Solid Minerals, Dr Kayode Fayemi, deputy Governor, Hon. Agboola Ajayi and his wife, Secretary to the state Government, Hon. Ifedayo Abegunde, members of the state executive council, permanent secretaries and several other government functionaries.
Others present were the first Professor of Investment Promotion in Nigeria, Professor Adesoji Adesugba, representatives of the British Department for International Development (DFID), Nigerian Investment and Development Corporation, Bank of Industry, Kaduna State Development and Investment Corporation, David Lukadu, Yewande Sadiqu, Mohammed Afeez respectively.
Also present were the representative of the CBN Governor, Godwin Emefiele, Mr Omolola Adegbenga, Lagos lawyer and human rights activists, Mr. Femi Falana, Executive Director, Energy Renewal Division, Nigerian National Petroleum Corporation (NNPC), Alhaji Abdullahi Adamu, Director General, National Emergency Agency (NEMA, Alhaji Mustapha amongst others.
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.”
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 PIGBin 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.”
The Ibadan depot of the Nigerian National Petroleum Corporation (NNPC) was reopened yesterday to load petroleum products to towns and communities in Southwest states.
NNPC’s Group Managing Director (GMD), Dr Maikanti Baru, who reopened the depot, said the action followed the completion of repairs of pipelines from Mosinmi to Ibadan as well as the repair of decayed facilities at the depot.
He said resumption of loading and other services at the depot would bring back activities that would rejuvenate the state’s economy.
The depot suspended operation two years ago due to vandalisation of pipelines from Mosinmi to Ibadan as well as the breakdown of facilities at the depot.
Baru said reopening the depots was part of the major projects undertaken by his administration to bring back life into the corporation’s operations.
The NNPC chief noted that the resuscitation would further enhance effective distribution of petroleum products across the country.
According to him, the depots were moribund at the time he resumed as the GMD.
He added that resuscitating them would bring life to the distribution chain and create jobs for Nigerians.
Baru hailed the Oyo State government for providing an enabling environment for the depot and other economic activities.
He said: “It is our sincere hope that the resuscitation project will help us achieve distribution target.”
Oyo State Governor Abiola Ajimobi hailed Baru for being the first NNPC’s GMD to officially visit the Ibadan depot.
The governor announced the donation of two security vehicles to strengthen surveillance of pipelines.
He also pledged to direct the state’s joint security outfit, Operation Burst, to join in the surveillance efforts of the NNPC.
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.
A crisis of confidence has broken out between Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu and Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru.
The minister has accused the GMD of awarding $25billion contracts without consulting either his office or the corporation’s board.
He blamed the GMD for alleged insubordination, lack of adherence to due process and running a “bravado management style”.
Kachikwu said he was being sidelined by the GMD and other heads of parastatals in major decisions and appointments.
He urged President Muhammadu Buhari to call the GMD to order to ensure due process and transparency in the oil sector.
Kachikwu also presented five prayers to the President to save the oil sector from collapse.
He said he was always being blocked from seeing the President.
Kachikwu, in an August 30 memo to Buhari, said he was neither anti-North nor corrupt as being alleged.
He said he was disturbed that $25billion contracts were awarded by Baru without his input and that of the Board.
The memo said: “The legal and procedural requirement is that all contracts above $20million 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.
“Given the history of malpractices and the public perception of the NNPC as having a history of non-transparency, the NNPC Tenders Board (NTB) cannot be the final clearance authority for contracts it enters into.
“The NTB, which is a collection of level NNPC executives and COOs, with the GMD as chairman cannot continue to be the final approval authority for multimillion dollar contracts and transactions involving NNPC to the exclusion of the Board.
Board members have singularly and collectively raised these issues to no avail. “The following major contracts were never reviewed by or discussed with me or the Board of NNPC:
The Crude Term Contracts – value at over $10b
The DSDP contracts – value over $5b
The AKK pipeline contract – value approximately $3b
Various financing allocation funding contracts with the NOCs – value over $3bn
Various NPDC production service contracts – value at over $3bn – $4bn
”There are many more Your Excellency. In most of these activities, the explanation of the GMD is that you are the minister of petroleum and your approvals were obtained. However, the correct governance should be that the Minister of State and the Board review the transaction and give their concurrence prior to presentation to you.
“As in many cases of things that happen in NNPC these days, I learn of transactions only through publications in the media. The question is why is it that other parastatals which I supervise as Minister of State or Chair of their Boards are able to go through these contractual and mandatory governance processes and yet NNPC is exempt from these?
“I know that this bravado management style runs contrary to the cleansing operations you engaged me to carry out at the inception of your administration. This is also not in consonance with your own renowned standards of integrity.”
Kachikwu also said he was being disrespected by the GMD
He added: I would have wanted to come personally after receiving you at the airport to felicitate with you and discuss matters herein contained, however, I have been unable to secure on appointment to see you despite very many attempts.
“Mr. President, yesterday like many other Nigerians, I resumed work confronted by many publications of massive changes within the NNPC. Like the previous reorganisations and reposting done since Dr. Baru resumed as GMD. I was never given the opportunity before the announcements to discuss these appointments. This is so despite being minister of State Petroleum and Chairman NNPC Board.
”The Board of NNPC which you appointed and, which has met every month since its inauguration and, which by the statutes of NNPC is meant to review these planned appointments and postings, was never briefed. Members of the Board learnt of these appointments from the pages of social media and the press release of NNPC.
”I only need to add that previous attempts to rush through these appointments through non-governance backdoor and present same to the Acting President were met with a request that this be discussed with me. This was never done.
“Indeed in anticipation of vacancies that would arise from retiring senior executives of NNPC, I wrote the GMD a letter requesting that we both have prior review of the proposed appointments. This was to enable me present same to the Board
“I wrote to the GMD given previous happenstance of this nature. In addition, thereafter, I called the GMD to a private meeting where I discussed these issues, Needless to say that , not only did he not give my letter the courtesy of reply, he proceeded to announce the appointments without consultation or Board concurrence.
“Mr. President, please note that there is a Board Services Committee whose function is to review potential appointments and terminations of Senior Staff prior to implementation. This committee was also not consulted.
The Minister presented five prayers to the President to save the oil sector from collapse.
The memo said: “My prayers most humbly and respectively are:
That we save NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the Board you inaugurated to do the needful.
That you save the office of the Minister of State from further humiliation and disrespect by compelling all parastatals to submit to oversight regulatory mandate and proper supervision which I am supposed to manage on your behalf.
You kindly instruct the GMD to effectively leave NNPC to run as a proper institution and report out along due process lines to the Board and that your Excellency instructs that all reviews be done with the Minister of State prior to your decision.
That to set the right examples, you approve that the recently announced reorganization changes be suspended until the GMD, myself and the Board have made relevant input to same. This will send a clear signal of process and transparency.
That Your Excellency encourages joint presentation meetings between heads of parastatals and the Minister of State to you so as to encourage a culture of working together and implant discipline in the hierarchy.
“These in my view, Mr. President, will provide you balanced analysis on issues and avoid exposing the exalted office of Mr. President to ridicule. It will also reduce nonproductive, unsubstantiated rumour peddling.”
NNPC spokesman: I’m not aware
It’s a normal procedural correspondence, says ministry
Spokesman of the Nigerian National Petroleum Corporation (NNPC) Mr Ndu Ughamadu told our reporter at about 9pm yesterday that he had not seen or heard about the minister’s letter. He said he could not comment on it adding that he had just returned from Maiduguri where he went on an assignment.
But the Ministry of Petroleum Resources in a statement by its Director of Press Idang Alibi titled: ‘publication of a confidential official correspondennce’ said: “The attention of the Ministry of Petroleum Resources has been drawn to a publication on a memo emanating from the HMSPR to the President.
“Please note the following: The communication under reference is a normal procedural correspondence by the Minister to the President relating to developments in parastatals under his supervision.
“It is most distressing to the ministry of petroleum resources that a confidential communication to the President on the performance of one of its parastatals can be made public.
“The focus of the communication was on improving efficiency and deepening transparency in the oil and gas sector for continued investor confidence.
“It is noteworthy that the President has been fully supportive of the efforts of the Ministry to entrench good governance and accountability in the oil and gas sector.
“The Ministry of Petroleum Resources remains focused on achieving measurable progress in the implementation of the ongoing oil sector reforms in line with the mandate of the President.”
