Petroleum Minister Rings Alarm Bell Over New Decay In NNPC, Award Of $25bn Contract By GMD, Baru Without Due Process

Petroleum Minister Kachikwu

.Alleges Lack of Transparency and Insurbordination

 

The Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu has raised alarm over new decay in Nigerian National Petroleum Corporation (NNPC) and the award of $25billion contact by the  Group Managing Director (GMD), Maikanti Baru without due process and how the GMD, in insubordination, has been sidelining him and other members of the NNPC board.

The minister accused Mr. Baru of lack of transparency and “bravado style management” in awarding $25billion contracts without consulting either his office or the corporation’s board.

Mr. Kachikwu revealed the excesses of the GMD in a memo he wrote to President Muhammadu Buhari, lamenting how 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, so as to save it from collapse.

Kachikwu also told the president how he was always being blocked from seeing him (Buhari).

In the memo dated August 30, in which Kachikwu said he was neither anti-North nor corrupt as being alleged, he stated that 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.”

The minister further alleged that he was being disrespected by the GMD

“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.”

He added: “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.

Kachikwu presented five prayers to the President Buhari in order to save the oil sector from collapse.

“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.”

Meanwhile, the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, on Tuesday declined to comment on the minister’s letter to his boss.

“I have no comment,” Adesina simply said.

Also NNPC’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, told the press on Tuesday that he had not seen the minister’s letter to Buhari, saying he would not comment on what he had yet to see.

He said, “You called it a letter, right? I’ve not sighted the letter. You can only comment on what you have sighted or what you have read. And if you called it a letter, then it is supposed to be something personal between the sender and the receiver.

“However, the important thing, with respect to your enquiry, is that I have not sighted the letter.”

But the Ministry of Petroleum Resources on Tuesday evening confirmed Kachikwu’s letter.

In an email to the Punch, the ministry’s spokesperson, Idang Alibi, confirmed the minister’s letter, but regretted that the confidential memo between Kachikwu and the President was leaked to the public.

He wrote, “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 that 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.”

 

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  1. $25bn NNPC Contract Scandal: Osinbajo Now Has Ph.D In Lying, Asari Dokubo Says, “Resign In Honour, You’ll Not Die Of Hunger” (VIDEO) – CHECKPOINTCHARLEY

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