Wednesday, October 17, 2018
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$25bn Contracts scandal rocks Nigeria Apex oil company

Nigeria Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has written a petition to President Muhammadu Buhari, alleging acts of insubordination and humiliation by the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Maikanti Baru.

In the letter, titled ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ written on August 30, 2017, with reference number HMS/MPR/001/VOL.1/100, Kachikwu alleged that the NNPC boss had repeatedly sidelined and disrespected the board of the national oil firm, which is chaired by the minister of state.

After felicitating with the President, the minister outlined the various alleged misdemeanours of the NNPC boss, urging Buhari to intervene by calling on Baru to respect due process.

Kachikwu said against the rules, some major contracts were never reviewed or discussed with him or the board of NNPC.
Some of these contracts, he stated, include the Crude Term contracts, valued at over $10bn; the DSDP contracts, valued at over $5bn; the AKK pipeline contract, valued at about $3bn; various financing allocation funding contracts with the NOCs, valued at over $3bn; various NPDC production service contracts, valued at over $3bn to $4bn.

In the letter, which was sighted by our correspondent in Abuja on Tuesday, Kachikwu said, “Mr. President, yesterday (August 29, 2017) like many other Nigerians, l resumed work and confronted with many publications of massive changes within the NNPC.

“Like the previous reorganisations and ‘repostings’ 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 the 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 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.”

The minister told Buhari that it was in the spirit of service and absolute belief in the President’s leadership and integrity that he (Kachikwu), after one year of tolerating the disrespectful and humiliating conduct by Baru, decided to bring the GMD’s acts to the President.

 

 

 

 

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