Senate probes NNPC GMD over Kachukwu’s corruption, insubordination allegations

The Senate on Wednesday resolved to investigate allegation of illegal award of $25 billion contracts levelled against the Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru.
The upper chamber said that the weighty allegation of malfeasance 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 letter to the President that was leaked to the media 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
“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 urged 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.