NNPC Scandal: Group Managing Director, Baru, breaks silence

Maikanti Baru. GMD of NNPC
Maikanti Baru. GMD of NNPC

The Group Managing Director of the Nigerian National Petroleum Corporation, Maikanti Baru, has finally responded to allegations of corruption and violation of contract laws raised by the Minister of State for Petroleum, Ibeh Kachikwu.

In a memo to President Muhammadu Buhari, leaked last week to the media, Mr. Kachikwu detailed several alleged misdeeds of Mr. Baru, including the unilateral award of hefty oil and gas contracts totaling about N9 trillion.

He also accused Mr. Baru of insubordination.

Mr. Kachikwu met with President Buhari on Friday, but despite the weight of the allegations, no government official reacted publicly until now.

Read Mr. Baru’s statement released on Monday:

PRESS RELEASE

RE: ALLEGATIONS OF LACK OF ADHERENCE TO DUE PROCESS IN NNPC CONTRACT AWARDS

Following the publication of alleged lack of adherence to due process in the award of NNPC contracts, the President ordered the Group Managing Director (GMD) and Management of the Nigerian National Petroleum Corporation (NNPC) to consider and respond expeditiously to the allegations.

The substance of the allegations made by the Minister of State for Petroleum Resources, in a letter to the President dated 30th of August 2017, is that a number of “major contracts were never reviewed or discussed with me (sic) the NNPC Board.”

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.

THE NNPC CONTRACTING PROCESS

The contracting process in NNPC is governed by the following:

i. Provisions of the NNPC Act

ii. The Public Procurement Act, 2007 (PPA)

iii. Procurement method and thresholds of application and the composition of Tenders Board as
provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.

iv. NNPC Delegation of Authority Guide

v. Supply Chain Management Policy & Procedure documents

vi. NNPC Ethics Guide

Approving Authority for Contracts

The SGF Circular (iii above) on procurement threshold provided the following authority limits for NNPC transactions as well as the composition of the NNPC Tenders Board:

Table 1: Financial Authority Threshold (SGF Circular (iii) above)

Approving Authority/No Objection to Award Special Works (NNPC)
BPP issues  “No objection to award”/FEC approves N2.70 billion (USD 20M) and above
NNPC Tenders Board Up to N2.7 billion (USD20M)

 

Table 2: Composition of Tenders Board (SGF Circular (iii) above)

Ministry Chairman Permanent Secretary
Members Heads of Departments
Parastatals Chairman Chief Executive
Members Heads of Departments

 

NNPC had cause to clarify severally from Bureau of Public Procurement (BPP) as to the composition of NNPC Tenders Board and the role of NNPC Board appointed by Government. The following clarifications were made.
a. The BPP expressly clarified that NNPC Tenders Board (NTB) is NOT the same as NNPC Board. The governing board (NNPC Board) is responsible for approval of work programmes, corporate plans and budgets, while the NTB is responsible for approval of day-to-day procurement implementation.

b. BPP referred to the SGF circular for the composition of the NTB to compose of the Accounting Officer (GMD NNPC) as the Chairman, with Heads of Department (GEDs) as members with the Head of procurement (GGM SCM) serving as the Secretary of the NNPC Tenders Board.
The above clarifications of the provisions of the procurement process show that approvals reside within the NTB and where thresholds are exceeded, the NNPC refers to FEC for approval. Therefore, the NNPC Board has no role in contracts approval process as advised by BPP.

As can be seen, all these clarifications were sought and obtained prior to August, 2015 and were implemented by Dr. Kachikwu as the GMD of NNPC. Dr. Kachikwu also constituted the first NNPC Tenders Board on 8th September, 2015 and continued to chair it until his exit in June, 2016.

Typical NNPC Contracting Process

1. Approval of project proposal and contracting strategy by NTB.

2. Placement of adverts for expression of interest in electronic and print media.

3. Soliciting for tender (Technical and Commercial)

4. Tender evaluation

5. Tender approval by NTB for contracts within its threshold; otherwise

6. Obtain BPP certificate of no objection before presentation to FEC.

7. Present to FEC for approval.

All Contracts in NNPC follow the above procedure.

SPECIFIC CONTRACTS MENTIONED IN THE HONOURABLE MINISTER OF STATE FOR PETROLEUM RESOURCES’ (HMSPR) LETTER TO MR. PRESIDENT

1. Crude Oil Term Contract (COTC)- valued at over $10bn

It is important to state that the COTC is not a contract for procurement of goods, works or services; rather it is simply a list of approved off-takers of Nigerian crude oil of all grades. This list does not carry any value, but simply state the terms and conditions for the lifting. It is therefore inappropriate to attach a value to it with the aim of classifying it as contract above Management limit.

In arriving at the off-takers list for 2017/2018 COTC, the following steps were followed:

a. Adverts were placed in National and International print media on Monday, 17th October, 2016.

b. The bids were publicly opened in the presence of all stakeholders (NIETI, DPR, BPP, Civil Society Organisations, NNPC SCM Division and the press as well as live broadcasts by the NTA and other TV stations).

c. Detailed evaluation was carried out and the short list of the successful off-takers was presented to the approving authority (Mr. President) for consideration and approval.

d. Thereafter, NNPC published the list of the successful off-takers in newspapers and NNPC’s official website.

This has been the standard procedure and it is the same process adopted during the 2016/2017 COTC when the HMSPR was the GMD.

In conclusion, due process has been fully followed in the shortlisting of the off-takers of the Nigerian crude oil for the current term 2017/2018.

2. The Direct Sale Direct Purchase (DSDP) Contract- valued at over $5bn

Like the COTC, the DSDP is not a contract for any procurement of goods, works or services, rather it is simply a list of off-takers of crude oil and suppliers of petroleum products of equivalent value.

This list does not carry any value, but simply state the terms and conditions for the lifting and supply of petroleum products. It is therefore mischievous to classify it as contract and attach a value to it that is above Management’s limit.

In arriving at the off-takers list for 2017/2018 DSDP, the following steps were followed:

a. Work plans and execution strategy for the DSDP was granted by the approving authority (Mr. President).
b. Adverts were placed in National and International print media and NNPC website on Thursday, 22nd December, 2016.
c. The bids were publicly opened in the presence of all stakeholders (NIETI, DPR, BPP, Civil Society Organisations, NNPC’s SCM Division and the press as well as live broadcast by the NTA and some TV stations).
d. Detailed evaluation was carried out and the short list of the successful off-takers was presented to the approving authority (Mr. President) for consideration and approval.
This has been the standard procedure and it is the same process adopted during the 2016/2017 DSDP when the HMSPR was the GMD.

In conclusion, it has been confirmed that due process has been followed in arriving at the shortlist of the DSDP partners for the 2017/2018 cycle.

3. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Contract

The AKK Gas pipeline project is a contractor financed contract. The process adopted for this contract is as follows:

1. Approval of project proposal and contracting strategy was given by NTB.

2. Placement of adverts for expression of interest in some National and International print media and NNPC’s website.

3. Expression of interest for pre-qualification received and evaluated.

4. Technical and Commercial tenders issued and evaluated

5. NTB considered and endorsed tender evaluation result for FEC approval since this contract is above NTB’s threshold subject to obtaining the following certificates of no objections:

a. BPP certificate of no objection (obtained).

b. Certificate of no objection from Infrastructure Concession and Regulatory Commission (ICRC) (obtained).

c. Certificate of no objection from Nigerian Content Monitoring & Development Board (NCMDB) (being awaited)

BPP and ICRC certificates have been obtained, while that of NCDMB is being awaited after which the contract will be presented to FEC for consideration and approval.

Thus, due process is being followed in the processing of this contract.

4. Various Financing Arrangements Considered with IOCs;

The financing arrangements reported as contracts are part of the process of exiting Cash Call approved by the FEC. It entails negotiations with JV Partners on alternative funding of some selected projects through third party financing to bridge the funding gap associated with Federal Government’s inability to meet its cash call contributions.

The third party financing option emanates from the appropriation act provisions that allow sourcing of financing outside regular cash call contributions. Upon approval of the calendar year’s operating budget, the NNPC in conjunction with its JV partners commence the necessary process for accessing financing to bridge the funding gap.

Section 8 sub-sections (1) and (4) of the NNPC Act CAP N123 requires that all NNPC borrowings must be approved by Mr. President. Specifically, it provides that:

(1) Subject to the other provisions of this section, the Corporation may, from time to time, borrow by overdraft or otherwise howsoever such sums as it may require in the exercise of its functions under this Act.

(4) Where any sum required aforesaid –

a) Is to be in currency other than Naira; and

b) Is to be borrowed by the Corporation otherwise than temporarily,

c) The Corporation shall not borrow the sum without the prior approval of the President.

Due Process:

1. NAPIMS and JV partner identify bankable projects that require financing and sends to NNPC Corporate Finance to assist in procuring financing.

2. Constitution of Joint Financing Team (JFT) between NNPC and the JV Partner.

3. JFT NNPC invites Request For Proposals (RFPs) from Financial Institutions.

4. Submitted RFPs are evaluated and beauty parade conducted to determine most cost-efficient proposal.

5. Negotiated Financing Strategy, Term-sheets, Structures and pricing are presented for NNPC Management’s (NTB) approvals.

6. NNPC presents the renegotiated terms for approval of Mr. President.

7. NNPC executes the resultant Agreement.

Financings taken under this Administration: Approx. $3bn are as follows:

All established due process as enumerated above has been observed leading to the securing of financing for the following projects in 2016/2017:

·        SN

·         PROJECT

·         Amount (US$mn)

APPROVALS

·         LOAN EXECUTED BY

NTB

PRESIDENTIAL

·        1.

·         NNPC/CNL JV Project Cheetah

1,200.00

·        16/04/15

·         01/09/15

·         Dr. E. I. Kachikwu

·        2.

·         NNPC/CNL JV Project Falcon

780.00

·        26/04/17

·         31/07/17

·         Dr. M. K. Baru

·        3.

·         NNPC/SPDC JV Project Santolina

1,000.00

·        26/04/17

·         10/07/17

·         Dr. M. K. Baru

·

TOTAL

2,980.00

·

·

·

 

These are not procurement projects as described by the PPA, 2007. However, all established due processes as enumerated above were followed.

The NPDC Integrity Upgrade and Development Projects

All the NPDC procurement contracts were subjected to the approved procurement procedures as described in respect of the AKK Gas Pipeline project above. There were no breaches of any extant procurement processes.

For the benefit of doubt, it is confirmed that there is no single NPDC contract that has been approved by the relevant Tenders Board beyond its limit of financial authority and there is no single contract that is in the $3Bn to $4Bn range claimed in the write-up.

Conclusions

From the foregoing, the allegations were baseless and due process has been followed in the various activities.

Furthermore, it is established that apart from the AKK project and NPDC production service contracts, all the other transactions mentioned were not procurement contracts. The NPDC production service contracts have undergone due process, while the AKK contract that requires FEC approval has not reached the stage of contract award.

Ndu Ughamadu
Group General Manager
Group Public Affairs Division,
NNPC, Abuja.
October 9, 2017.


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  • FreeNigeria

    Una see am say na Buhari be the wahala here.

    • persona

      Buhari is not the issue here. If you could read and understand, the description is, bids are valued and considered before even civil society but after deciding those that qualify, the president approves based on extant laws…how is Buhari at fault here?

      • Gbabe 2017

        @disqus_qjvnqdDXoX:disqus

        • WHICH SCHOOL DID THIS ALHAJI BARU GO TO PLEASE? I AM ASKING THIS QUESTION BECAUSE
        I AM SEEING TOO MUCH ILLITERACY IN WHAT HE SAID HERE. ANYBODY WHO WENT TO A GOOD
        SCHOOL SHOULD KNOW HOW TO THINK PROPERLY THAT CORPORATE DECISION OF NNPC IS
        ONLY THROUGH BOARD RESOLUTION ALONE – NOT BY APPROVAL OF AN ILLITERATE
        ALHAJI BARU AS THE GMD OF NNPC.

        • persona

          That is what they decided to use as their escape and it doesn’t change the fact that what they did is wrong. They would rather go to BPP than a board…the question is why?

      • Julius

        You need to understand that if it rains too much or no ran at all, Buhari must and will be blamed …It’s all the live to do.

        • persona

          na so

          • Julius

            Yep, as you can see.

      • BEEJAY

        @disqus_qjvnqdDXoX:disqus

        Well, if this is the best defence of Alhaji Baru – the GMD of NNPC – maybe Muhamadu Buhari
        should start looking for lawyers to defend him against imminent articles of impeachment for
        intentional violation of the laws and the Constitution of Nigeria. This is a watery defence!

    • newvoice404

      How is it Buhari? Yeye PDP man that thinks everyone must be corrupt like them. Prove the corruption here. He would not be the first president to be petroleum minister and it’s constitutional. So I beg,tell another story. Shame

    • share Idea

      If any of the APC e-mob ever disturb us again about Buhari fighting corruption after reading this rebuttal, that person deserve to be stoned.

      This is reason why Buhari removed Ibe as NNPC MD, and replaced him with Baru and have been signing off billions.

      Hence, the reason it was reported over the weekend that Buhari ordered that SANITY should prevail.

      • AX

        Bubu should be impeached…

  • newvoice404

    Where are Ibe Kachukwu latter day supporters and obvious Buhari acute haters? Where is confused FFK and Igbo haters that are desperate to hang corruption toga on Buhari regardless of the fact? I pity these sets of people that think, since they are so corrupt and don’t wish the nation well, everyone must be the same and wish that the nation goes to blazes. Shame.

    • IBRAHIM DAUDA

      You right they have mindset about all issues that involves Buhari and APC. GOD BLESS NIGERIA AND NIGERIANS AAMEEN.

  • persona

    So, why has a board never met on the business for which it exist?
    Clearly, Kyari ensured the bypass when he ensured the removal of Ibe as GMD and in turn labelled him north hater, militant friendly. The issue is getting clearer and its just important to note that our dear spokesperson is the same using strong words such as baselss etc to attack his fellow brother…later we go say na one section against another.
    Anyways, EFCC should do the needful, Buhari should step down and possibly if Baru claims that the Minister and the minister of state have nothing to do with contract and approvals, why then do they exist?
    It is time for NASS to ensure they rise above these public claims. If Buhari and Ibe as ministers have no input, they should not exist and we will know that all we need is a GMD which Ibe was before Baru showed up.
    If also, the GMD is the boss in the industry, how come madam Madueke was able to hold sway and not just the GMD of NNPC?

    • Naijawehail

      We know your type. Oya continue your tribal rant!!! If the chairman of a board cannot call for a board meeting to discuss any issue he feels then who is to blame.

      • persona

        Is that not my point? Were you not clear that why does the board exist if it wont seat? Have they been collecting seating allowance and perk for meetings that never happened? These are the issues I raised, I no sabi where you see tribal sentiments

    • This case is like that of chief of defense staff and chief of army staff. chief of defense is the highest ranking military officer but because chief of army staff is from the North, he is more powerful and influential than CDS. Madueke was powerful because she’s from the same region with the president. The same scenario is playing out in Baru vs Kachikwu, if Kachikwu is a northerner and Baru a southerner, reverse will be the case. Kachikwu will be more powerful than the GMD but the GMD is a Northerner and they believe Nigeria is their empire

      • Dan Minister

        Is not like that in the case of Kachikwu and Baru. You are just working hard to distort the fact. The fact is Kachikwu had been sidelined from the rules that govern the NNPC act period. Kachikwu is a first class barrister and he made used of the laws before Baru, and the act kept on saying “substantive Minister” instead of him to either resign or to keep quiet and watch. He is now portraying himself as a 3rd class guy, is a pity. And moreover whatever we do it has a precedence, as in same Kachikwu made used of these laws before as a GMD of the NNPC. The issue doesn’t has to do with ethnicity at all but lack of trust from the president that is the way I see it. And for Diezani that you pointed out initially, she was a substantive Minister of petroleum not state Minister like Kachikwu let’s set the record straight

    • Dan Minister

      Madam was a substantive Minister while Kachikwu is a state. Go through the writer up again you will see that they kept on emphasising on “Substantive Minister” as I said earlier on Kachikwu should have resigned since but, you know us now that one no dey for our blood. They rendered him useless the day they made him state Minister not the GMD of the NNPC anymore. What bafles me here is that He made used of this act when he the GMD but at the same time he is crying like a baby today because somebody is following his footsteps now to continue from where he stopped. What an irony

      • persona

        He may have consulted with the board. Let us not forget, Ibe is a trained lawyer and he should know what the law states. I wonder why a GMD had to escalate to BPP for clarification? This is rather curious if they claim that Ibe’s claims are spurious.

  • persona

    There is a potential crime here: A resource of the country is not “valued” and yet approved?
    Baru cant escape with this lame excuse. The values of the contracts have been evaluated and they had potential value and the yeye off-taker story doesn’t fly because if it was not significant, they should not have to go through approval process.
    When a process of evaluation is done, a value and pitch is made to adjudge the likely winners, how then does contractor present value and the GMD is saying no values were attached when it has a potential value which led the contractors to bid?
    Clearly, this explanation is weak and doesn’t explain why a board never sat or the reason for which Ibe was blocked from seeing his principal.
    It also indicates that we don’t need a minister or minister of state in NNPC according to this narrative, why then was Ibe removed as GMD when he was doing the right thing?

  • Dan Arewa

    Ibe Kachikwu letter was expose through the internet media. Everybody keeps mum from both the Presidency, Ibe Kachikwu and NNPC. Only Serap, House of Refs, some lawyers and the opposition keep discussing the issue.
    Now NNPC has issue the same response letter through the writen media. I expect all those making noise to discus about this NNPC response letter.

    • Stanley

      From the response letter NNPC Board is just a sit-down-look board. If the substantive Petroleum minister is not the President will the GMD take the documents straight to the President or FEC as claimed? The letter has not explain how he reports directly to the President. Also are these rules drafted by the SGF in the composition of NNPC tender board overlooked by the laws on Nigeria?

  • Bright Henry

    Hmmmm. Over to you. Dr. Ibe

  • Naijawehail

    Hmm. What next Kachikwu? Premature judges that listen to one side, what do you have to say? So most of the figures quoted by Kachikwu were from his imagination. I definitely do not blame Kachikwu for complaining if he has been sidelined but why will e-analysts without facts and only one side rush to conclusions. Even lamenting that 25billion dollars is missing for 2019 election. I laugh!!!

    • Jon

      Man, just know that Buhari is a thief. Period. He has a history of stealing oil money.

    • obiora

      You are talking from your Anus if that is how low you can reason. So petroleum Ministery in Nigeria has no job. NNPC is now a Private Company.

  • Isyaku Muhammad

    Why would ‘nt him keep silence. We’re calling on Buhari to sack him

  • Tonic Anaekwe

    All I see here is ego tripping. Pettiness being allowed to have the better of 2 brilliant guys who should collaborate for the good of Nigeria & Nigerians. Pmb shd pls employ wisdom & tact for minimal injury.

  • Naijawehail

    How can husband and wife be fighting and you only hear the story from the husband and rush to say the wife should pack out of the house. Now both sides have spoken it is time for a proper discussion on the way forward. Ethnic warlords not invited!!! And please I am begging no insults.

    • MilitaryPolice01

      And please I am begging no insults.
      ——————————–
      hahaha if you must comment on the naija cyber space you must be thick skinned and accustomed to insults.

    • Julius

      lol, good luck !

  • speechtherapy

    This response tries to be clever by half but fails spectacularly! In all the projects the NNPC references as being “forwarded to the President or FEC for assent was the Minister of State made aware? They suggest that it is fit to just jump over the man and submit directly to the Presidency/FEC and not expect an allegation of insubordination or outright fraud?

    How can the NNPC honestly talk about the crude lifting as not having a value??? Does crude not have a benchmark international price again? Do the shortlisted companies not have lifting allocations attributed to them? How is this valuation now a problem?

    Clearly, the NNPC with the prompting of Buhari have decided to sideline Kachikwu and in the process, do whatever they like…no sympathy for Kachikwu who was prancing around think he was working with people of like minds…he will learn the hard way..

    • Malik Isah

      Your problem is Buhari , why don’t you just hug a transformer one time

      • speechtherapy

        …after you my brother..

        • Malik Isah

          Me I am very happy with Buhari na you and your kind wey no like am go jump o . Pls jump you hear

  • Mercy_JAA

    I completely agree with those that put the blame at the door step of the President (Buhari). Why appoint a Minister of State when you intend to render him redundant? Otherwise, how can Buhari be given approvals to all the transactions without seeking the input of his minister of state. Those contract NNPC is claiming not to have figure is a smart way of dodging the consequences of not seeking approvals from the appropriate authority. Because, even as the president, the FEC approval will be required for contracts as high as 5 & 10 billion dollars. Finally, the NNPC response had cleverly avoided the issue of appointments raised in Kachikwu memo. In conclusion, Buhari seems to have lost confidence in Kachikwu or he doesn’t trust him enough to help with election funds.

  • MilitaryPolice01

    “Approving Authority for Contracts
    The SGF Circular (iii above) on procurement threshold provided the following authority limits for NNPC transactions as well as the composition of the NNPC Tenders Board:”
    ————-
    Which SGF ? Is it the rogue grasscutter ?

    ////////////////////////////////////////////

    “In arriving at the off-takers list for 2017/2018 COTC, the following steps were followed:
    a. Adverts were placed in National and International print media on Monday, 17th October, 2016.”

    “In arriving at the off-takers list for 2017/2018 DSDP, the following steps were followed:
    a. Work plans and execution strategy for the DSDP was granted by the approving authority (Mr. President).
    b. Adverts were placed in National and International print media and NNPC website on Thursday, 22nd December, 2016.”
    ———————————————-
    Can these Print Media(s) be verified ? Why are the names not expressly mentioned for better clarity?

    //////////////////////////////////////////

    From the foregoing, the allegations were baseless and due process has been followed in the various activities.
    ——————————-
    The allegations cannot be baseless until Dr Ibe responds with his own facts and figures, this debate must be allowed to continue so Nigerians can get the full picture, and none of the parties should be stifled.

    • LasgidyPort

      The SGF that wrote what was been referenced is Pius Anyim, check the date.

      • MilitaryPolice01

        iii. Procurement method and thresholds of application and the composition of Tenders Board as
        provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
        SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.
        ——————-
        Thanks, but The date you referred me to above tells me Yayale Ahmed authored the Circular in reference, and not Anyim whose tenure commenced 2011 – 2015

        • Malik Isah

          Hatred did not allow you to see the date before. Now that your attention has been drawn to it, it is now about Yayale. Continue

        • LasgidyPort

          Thank you for the observation.

          • MilitaryPolice01

            My brother, bigger thanks to you for pointing out my omission. Stay blessed bro

      • Fairgame

        It doesn’t matter who wrote it but whovthe current SGF is that gives approvals. So it is the grass cutter looter that is the one that is involved in approving even more looting. What a country! No wonder Buhari refused to do anything about the grass cutter looter

        • Julius

          So, the current government gave an approval for the procedure in place before Buhari became the president ? Please, educate me on that. Was the process changed when Buhari came into the office.? It seems to me that the procedure was followed in this case. Anyway, I’m waiting for the Minister’s response.

          • whereto

            This matter is still unfolding. Disregard the negative noise makers. I’ve thought from the onset that it was essentially an administrative conflict and it’s looking that way. Let’s see whether kachikwu can contradict this response.

          • Julius

            I’m thinking the same but, we must hear from both sides.

        • LasgidyPort

          Are you sure you can read? There is no where it was stated on the report that the SGF gave any approval.

    • Malik Isah

      Militarypolice, I thought you and your kind are very educated to the extent that every SGF IS Babachir. See what hatred can cause. No kill yourself with hatred o. Go back and read the document again

    • Julius

      Yes, you are indeed correct, let’s wait for the Minister’s response. I can not take Baru’s explanation on mere face vakue till Minister Ibe response. I’m sure he will do that.

      • AFRICANER

        You are fooling yourself.

        Buhari, is Ali Baba with his 40 thieves.

        But I’m more interested in his terrorism nexus and his murders.

      • MilitaryPolice01

        Bro I heard Ibe has been asked not to respond any further by the C in C

        • Julius

          That would be terrible…not a good idea . I hope he again find a way of leaking his response. This
          should not be swept under the carpet as they usually do. We need to hear his response and we should all demand it. I strongly believe the Minister because of the arrogance of the Northerners working at any ministries ..in any position. Ask any bureaucrats and they will tell you. They lack respect for authority. We shall see how this play out.

          • MilitaryPolice01

            You are right, but I will advise Ibe not to leak or he would be found out and in so doing play into their hands. If I were him, I will hand in my resignation and then open the can of worms from outside, he has made a name for himself and so many opportunities await him – infact he will be called by future Nigerian Govts that are serious on Oil reforms. For now he needs to hand in his resignation before the imminent cabinet reshuffle through he will be eased out anyway

          • Julius

            He need to stay and fight even if he lost out we will all know why. You are right, he will get another position with another administration in the future. Look at the people that left Jona admini similarly, they are doing well after and we also found out they were right.

  • This daBaru man is a front for the chief of staff

  • Fairgame

    So Buhari approved $13 billion worth of contracts to a company owned by Abba Kyari his chief of staff and that is not corruption? Hypocrites. Armed robbers this Buhari and his henchmen. In all this the man Baru has not said that he and Buhari followed due process even if we are to ignore the kleptomaniac issues with whom the contracts were awarded to. According to public procurement act was the said tenders advertised? How did $20mlion approval limit morph into $25billion? What this man has just done is tighten the rope around the neck of Buhari as minister or petroleum and around his own neck too. Because it is clear that listing the rules without addressing the due process issue in kachikwu’s letter is a futile attempt to obfuscate the matter.

  • sadiq charles

    I am an avowed Buhari apologist but i cannot defend him on this issue. Your Minister for Petroleum is more experienced and on the ground than you on petroleum matters yet you are approving projects without seeking his counsel. Not good. No excuse.

    • Malik Isah

      You have funnily exposed who you really are. Dropped the hatred and read the document before you

    • Julius

      Did you even read the explanations or it doesn’t matter because you’ve made up your minds regardless.

      • AFRICANER

        Even Ali Baba when given a chance to explain outside of a courtroom cross examination, comes out smelling like a rose. His 40 thieves not withstanding.

        One thing Buhari has never faced is an EFCC arrest, jail, and trial. God will provide his judgement.

    • newvoice404

      Show us…..where you have ever supported him for anything! Liar like you. Shame

  • utolason

    This SGF and what not explanations did not help NNPC in anyway. If the GMD could do all that are enumerated the question it raises is that Buhari removed Ibe kachukwu as GMD and made him minister of state just to make him redundant.

    Buhari and his SGF motives all along leave more questions than answered by this response.

    • Malik Isah

      You are correct because it was you who appointed kachikwu in the first place and Buhari removed him so he can chop

      • Jon

        Use the right word – not chop but steal. He is a thief.

        • Malik Isah

          E dey pain you sha

      • chat4zeal

        Kwachikwu is only trying to be relevant. Who knows the minister of state and chairman of whatever board during the last administration. GEJ, Adoke and Madueke were fingered in the malabu scandal, Madueke was fingered for the oil swap, why weren’t the minister of state…or chairman of whatever board fingered. It shows those positions are irrelevant to contract and procurement. I believe Kwachikwu himself might have leak the letter to draw public sympathy.

        • Prince Prince

          If Ministry of state of state for petroleum and chairman of whatever is irrelevant in the petroleum ministry/NNPC
          and unknown to Law according to you, why did Buhari create that office and moved Kachukwu from GMD to the irrelevant office? Was it deliberate? Is it part of what they call TAQUA? Is that the change he promised Nigeria?
          In that case he should have left Kachukwu where he is earning a descent living in Shell Petroleum.

    • Jon

      No questions at all. The answer is to steal oil money. Buhari has a history of stealing oil revenues.

  • Ola

    Then there shouldn’t have been anything called NNPC Board. Buhari is looking for 2019 election fund – fighting corruption while benefiting from it.

    • Jon

      Buhari is not looking for 2019 campaign fund, rather as personal accumulation which is called theft. Buhari is a thief. He is been stealing oil money right from OBJ regime through Abacha regime to present. He has a history of oil theft.

  • Law Offices Kapital City

    @utolason:disqus

    Why the ‘Buhari & Baru $25 billion contracts’ are null and void

    Maikanti Kacalla Baru, the Group Managing Director of NNPC,
    has zero sense of public administration and should be removed for the
    crookedness he deploys to pretend to ignorance. Nowhere in a a private or
    public corporation is a Managing Director authorized by law to single-handedly
    determine the business and operational needs and plans of a corporation and
    proceed to an Internal Tenders Board chaired by himself to approve all he proposed
    by himself. This is what Maikanti Kacalla Baru, said he did here, without any sense
    of contrition, education or guilt. There is a Board of Directors of NNPC authorized
    by the NNPC Act to “run the affairs of the NNPC”. That all-encompassing duty
    by law compulsorily includes the powers of the Board to decide what is to be done,
    when and how.

    Maikanti Kacalla Baru instead intently usurped the NNPC Board,
    violated the NNPC Act, solely constituted himself wrongfully as a one-man final
    decision-maker and solely decided the business and operational needs of the
    NNPC. Maikanti Kacalla Baru then decided all by himself that all the proposed
    contracts of and for services are below $20 million each, all by himself, and
    then he sat on the internal tenders committee, as Chairman, to approve all the
    contracts that he’d solely proposed, without any prior approval by the Board of
    Directors of NNPC. This is the most lawless procedure ever utilized in public office
    and certainly one corruptly attainted by self-interest, fraud or theft. For that reason
    all the contracts solely awarded by Maikanti Kacalla Baru, in likely conspiracy with
    Muhamadu Buhari, are null and void for violsting the NNPC Act on authorization.

    • man leader

      In a true democracy, this man should have been locked up already.

  • Gbabe 2017

    @taiwoolalere:disqus

    WHICH SCHOOL DID THIS ALHAJI BARU GO TO PLEASE? I AM ASKING THIS QUESTION BECAUSE I AM
    SEEING TOO MUCH ILLITERACY IN WHAT HE SAID HERE. ANYBODY WHO WENT TO A GOOD SCHOOL
    SHOULD KNOW HOW TO THINK PROPERLY THAT CORPORATE DECISION OF NNPC IS ONLY THROUGH
    BOARD RESOLUTION ALONE – NOT BY APPROVAL OF ILLITERATE ALHAJI BARU AS GMD OF NNPC.

    • Facts & Figures

      @taiwoolalere:disqus;

      There are now 28 million un-employed youths inside Nigeria today, a staggering figure
      equal to the entire population of Ghana; a neighbouring West African country –
      according to a latest official bulletin issued by the federal Nigerian Bureau of
      Statistics. The horrific jobless figure in Nigeria today is over half the whole
      population of Nigeria at independence on October 1st, 1960 and equal
      to all the human beings living in Ghana today.

    • Musa M. Dantsoho

      It is not a matter of insinuations. Simply counter the laws quoted by what you called “the illiterate Alhaji”

      • Moneyz N Horseyz

        What does the NNPC Act say about the Approving Authority for contracts? In my opinion, referencing a circular

        (Procurement method and thresholds of application and the composition of Tenders Board as
        provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
        SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.) in preference to the organisation’s Act ,appears to be a deliberate and calculated attempt to bypass the constituted authority. There is a Board of Directors of NNPC authorized
        by the NNPC Act to “run the affairs of the NNPC”.

        • Musa M. Dantsoho

          As an opinion, it is doubtful if law recognises personal opinion or perception. To avoid this situation, sometimes interpretation of a law by Courts becomes relevant.

          • Moneyz N Horseyz

            Part I
            Establishment of the Corporation.

            1. (1) There shall be established a corporation by the name of the Nigerian National Petroleum Corporation (hereinafter in the Act referred to as “the Corporation”) which shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name.

            (2) The affairs of the Corporation shall, subject to Part II of this Act, be conducted by a Board of Directors of the Corporation which shall consist of a Chairman and the following other members, that is-

            (a) the Director-General, Federal Ministry of Finance and Economic Development;

            (b) the Managing Director of the Corporation; and

            (c) three persons to be appointed by the National Council of Ministers, being persons who by reason of their ability, experience or specialised knowledge of the oil industry or of business or professional attainments are capable of making useful contributions to the work of the Corporation.

            (3) The Chairman shall be a Minister in the Government of 1979 No. 44 the Federation to be known and styled as the Minister of Petroleum Resources.

            (4) The supplementary provisions set out in the First Schedule to this Act shall have effect with respect to the tenure of office of the members of the Board (other than the Chairman), proceedings of the Board, certain duties of the members thereof and the other matters mentioned therein.

            2. (1) There may be appointed by the President an Alternate Chairman who may, pursuant to any general or special delegation given in that behalf by the Minister exercise the powers conferred upon the Minister or Chairman under this Act:

            Provided that nothing in the foregoing shall be construed as preventing the exercise by the Minister himself of any power so delegated.

            (2) The provisions of the Ministers’ Statutory Powers and Duties (Miscellaneous Provisions) Act shall not apply to any delegation made under this section and the question whether any delegation has been made hereunder shall not be inquired into except at the instance of the Minister.

            Part II
            Petroleum Inspectorate

            10. (1) There shall be established a department to be known as the Petroleum Inspectorate which shall, subject to the other provisions of this Part, be an integral part of the Corporation.

            (2) The Minister may delegate to the Alternate Chairman (where one is appointed) or the chief executive of the Inspectorate such of the powers conferred upon him under the Oil Pipelines Act, the Petroleum Act or any other enactment as he may deem necessary and in particular, but without prejudice to the generality of the foregoing, responsibility for the following matters, that is-

            (a) issuing permits and licences for all activities connected with petroleum exploration and exploitation and the refining, storage, marketing, transportation and distribution thereof; and

            (b) acting as the agency for the enforcement of the provisions of the said Acts and any relevant regulations made there under by the Minister;

            (c) carrying out such other functions as the Minister may direct from time to time,

            and notwithstanding the foregoing, any regulatory function conferred on the Minister pursuant to the said Acts or any other enactment shall, as from the appointed day, be deemed to have been conferred upon and may be discharged by the chief executive of the Inspectorate.

            (3) In the exercise of the powers conferred upon the chief executive of the Inspectorate under this Act, he shall not be subject to the direction or control of any other person or authority in the Corporation except the Minister.

          • Musa M. Dantsoho

            “The substance of the allegations made by the Minister of State for Petroleum Resources, in a letter to the President dated 30th of August 2017, is that a number of “major contracts were never reviewed or discussed with me (sic) the NNPC Board.”

            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.”
            I believe this is the area most critics of Buhari and Baru hit the hardest. In their opinion stealing had taken place and the two were the accused persons standing trial.

    • man leader

      Gbade, the man is well educated. He knows exactly what he’s doing with the blessing of the president and the cabal. Thank God for planting Kachikwu there.

  • wode

    I warned that people should not use one-sided story and jump into conclusion. It’s obvious that, in all, Kachikwu has since lost the huge trust bestowed on him by the President as the GMD of NNPC and later doubled as HMSPR. for him to been taken away as the GMD of NNPC and not made the substantive minister of PR. This suggests that something somehow went wrong in that relationship. This may probably not be the end of the whole story should this discussion lingers, which is likely to be the case. This may end up exposing more about the covert dealings of the main actors.

    According to this response from NNPC, the claim of not following due process and insubordination may not all be true after all. It looks very much like the case of playing to gallery in order to get public sympathy. It seems Dr Kachikwu is confusing the office of HMSPR with that of a substantive minister.

    All in all, this is very much about managing human relation as well as for each of the protagonists to know the limit of their offices and adhere to it.

    • Moneyz N Horseyz

      The GMD is only trying desperately to cover his well calculated fraud. This is an extract from the GMD’s response as published above :

      THE NNPC CONTRACTING PROCESS
      The contracting process in NNPC is governed by the following:
      i. Provisions of the NNPC Act
      ii. The Public Procurement Act, 2007 (PPA)
      iii. Procurement method and thresholds of application and the composition of Tenders Board as
      provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
      SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.
      iv. NNPC Delegation of Authority Guide
      v. Supply Chain Management Policy & Procedure documents
      vi. NNPC Ethics Guide
      Approving Authority for Contracts
      The SGF Circular (iii above) on procurement threshold provided the following authority limits for NNPC transactions as well as the composition of the NNPC Tenders Board:
      Table 1: Financial Authority Threshold (SGF Circular (iii) above)
      Approving Authority/No Objection to Award Special Works (NNPC)
      BPP issues “No objection to award”/FEC approves N2.70 billion (USD 20M) and above
      NNPC Tenders Board Up to N2.7 billion (USD20M)

      Table 2: Composition of Tenders Board (SGF Circular (iii) above)
      Ministry Chairman Permanent Secretary
      Members Heads of Departments
      Parastatals Chairman Chief Executive
      Members Heads of Departments

      On the one hand, he claimed to have adhered to the provisions of the NNPC Act, but deliberately ignored the Act in favour of a certain “circular by a former SGF “as regards procurement. This is proof of a well orchestrated and planned fraud.

    • Boss

      The GMD is plainly wrong in saying there is no role for the the NNPC Board of Directors and that the internal tenders board is okay to award big contracts. It was reported elsewhere that the GMD reports not to the Minister of State but the President as the Minister. If the President appointed the Minister of State as Chairman of NNPC Board, does that not show that the Minister of State is in charge?
      So the GMD was by-passing the Board and Minister of State and reporting to AbbaKyari when the President was sick!

  • Folabi Towry

    @wode:disqus

    I write to thank Mr. Ibe Kachkwu for blowing the lid open at NNPC.

    What’s going on in NNPC is the financial equivalent of crime against humanity.

    The earlier the EFCC steps into the breach the better for the robbed people of Nigeria.

  • Oskirin

    ofa 2 u minister 2 reject ds claim.

  • Dr Pat Kolawole Awosan

    The NNPC managing director Dr Maikati Baru, errs by not following the due process and failure to carry along the boad of directors, of the NNPC, in awarding such a huge figures oil and gas contract hence, Dr Maikati Baru, must step-aside or go on suspension while investigations into the allegations against his mis-conduct allegations..
    NNPC is still under the minister of state for petroleum resources and Dr Maikati Baru, ignored the minister of state for petroleum resources, Dr Ibe Kachikwu, and board of directors of NNPC,s approval while awarding a huge N9trillion -Naira oil and gas contract.

    • Really

      It has not started .you will never achieve that.
      The whole package is the change you dearly cherished. Enjoy it.
      Sorryoooooooooo

  • Jon

    All these are cooked up story that will not fly. Buhari and Baru are just pen robbers.

  • Moneyz N Horseyz

    What does the NNPC Act say about the Approving Authority for contracts? Referencing a circular

    (Procurement method and thresholds of application and the composition of Tenders Board as
    provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
    SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.) ,appears to be a deliberate and calculated attempt to bypass the constituted authority as stipulated by the corporation’s Act.

  • IBRAHIM DAUDA

    Since all of you that comments here are aware of the the whole thing tell us WHAT is happening at the NNPC, rather than calling Buhari thief.. Lets hear the truth about it or keep your mouth permanently shut.

    • AFRICANER

      Did you afford Dasuki and the other accused such benefit of doubt, did you let them defend themselves in only newspapers?

      AliBuhari and his 40 thieves should tell it to the judge!

    • man leader

      You are in the wrong place. Here people SPEAK OUT their minds. bye

  • Hassan

    Governance in Nigeria is gradually turning into a circus show. PMB should relinquish the the post of petroleum minister and Abba kyari out of the NNPC board. NASS should fastrack the passage of the PIB into law.

  • AFRICANER

    AliBuhari and his 40 thieves only ‘defend’ themselves on Newspapers not in courtrooms, facing cross examinations. Authenticity of documents, and such, is important.

    AliBuhari needs to face the law like his opposition.

  • gboyegaa

    This guy, with his rogue colleagues at NNPC and Aso Rock should all be investigated with their “financing arrangements”. They are thieves, otherwise, they would have ran the projects through the NNPC board, just for integrity, even if the project costs $5000. They created loopholes for themselves to siphon money through kick-backs.
    Buhari should remove him and his gang.

    • man leader

      Buhari, a GENERAL is not weak. Its a scheme he’s very much familiar with from 1976 as Federal Commissioner Petroleum to Chairman PTF and now president / Minister Petroleum. The man knows how to drink oil

  • Juwon

    What people fail to actually realise is that the Minister of State for Petroleum realised a back do had been open and had to Clarify it to the public,so they will see what is happening.

  • obiora

    So it is Buhari that leaked Kachikwu´s letter which he wrote to him.

    • Sword of Damocles

      It cannot be the President as the revelation makes him out to be one or all of the following: corrupt, indifferent, detached, provincial/tribal in the extreme, surrounded by very corrupt diabolical subordinates.

  • Abubakar DanrakaFPCP

    Succinct response to weighty allegations. Transparency and accountability is indeed the way forward to good governance in Nigeria.

    • Bassey Frank

      You have said nothing. Does “succinct response” equate “Transparency and accountability” in this matter?

  • Bassey Frank

    “BPP referred to the SGF circular for the composition of the NTB to compose of the Accounting Officer (GMD NNPC) as the Chairman, with Heads of Department (GEDs) as members with the Head of procurement (GGM SCM)
    serving as the Secretary of the NNPC Tenders Board.”
    FROM THIS RESPONSE, IT CAN BE SEEN THAT IBE KACHUKWU HAS NO RELEVANCE IN NNPC. IT IS ALSO OBVIOUS THAT BUHARI DELIBERATELY REMOVED HIM AS NNPC GMD TO PUT HIM IN A REDUNDANT POSITION THAT GATHERS DUST. FOR GOODNESS SAKE, OF WHAT RELEVANCE IS NNPC BOARD IF IT CANNOT MAKE INPUT INTO CONTRACTS AND APPOINTMENTS? IS THE CONCEPT OF “BOARD” DIFFERENT IN THE CASE OF NNPC? WITH THE ABOVE EXPLANATION, YOU CAN SEE THOSE THAT CONSTITUTE THE POWERFUL AND ALMIGHTY NNPC TENDER BOARD:

    BUHARI’S RECENT APPOINTMENTS AT NNPC – SIGN OF AN UPRIGHT SAINT?
    1. Shaibu Musa – MD, NNPC Medical Services
    2. Ibrahim Birma – Group General Manager, Audit Division
    3. Ahmed Katagum – Group GM Shipping
    4. Kallamu Abdullahi – Group GM, Renewable Energy Division
    5. Dr Bola Afolabi – Group GM, Research & Development
    6. Adeyemi Adetunji – MD, NNPC Retail Division
    7. Usman Yusuf – Group GM, NNPC GMD Office
    8. Bala Wunti – in charge of Corporate Planning & Strategy
    9. Umar Ajiya – MD, Nigerian Products Marketing Company
    10. Muhammed Abah – MD, Warri Refining Petrochemical Company
    11. Malami Shehu – MD, Port Harcourt Refining Company
    12. Adewale Ladenegan – MD, Kaduna RefiningPetrochemical Co
    13. Diepriye Tariah – MD, Integrated Data Services
    14. Rland Wubare – GM National Petroleum Investment Services
    NOTE: Maikanti Baru – still GMD, NNPC.
    Isiaka Abdulrasaq – GED Finance & Services
    Alhaji Muhammadu Buhari – Petroleum Minister

  • Monero

    I am tired of this thing called country.

  • Timothy

    Baru you really dont want to go this way…I mean you have a minster of state and who is the head of the board and you decide to make these decisions without the input of the board and even is you dont report to him it is required it is transparent and all those who needed to know are given to opportunity to have a say…when you now run the shows like you are not answerable to anyone means you can act like a god and that does not promote transparency…even if Buhari signed off on it…he might have done that with the believe that you have the support of the entire board and now it seems you disregard the other members and made yourself lord over others and you dont need their input…that is what Nigerians are sensitive about….Buhari still remains my president and I will ever support him but for people to do whatever they like because they have his ear is not what we the people want…it does make room for people to play god and above others…just like this Baru guy…I dont like this statement one bit.

    • Bassey Frank

      You made a valid point here. But it is not true that people “do whatever they like because they have his ear”. It is because they know he is incompetent.

  • Ahmed Saddam Kofar-nasara

    c. Detailed evaluation was carried out and the short list of the successful off-takers was presented to the approving authority (MR. PRESIDENT) for consideration and approval.

    Reading the above quoted statement, i strongly recommend the presidency to clarify if Mr. President has actually approved the said contracts… Period…
    Because fundamentally Dr. Baru has just indicted the presidency…

    And if the response came in an affirmative; i will strongly suggest that, Dr. Kachikwu should resign because he has no business being in that position if his professional expertise is no longer needed..

    • Sword of Damocles

      Nuff said……

    • man leader

      Whatever happens, I’ll not suggest Kachikwu resigns. The two B’s will be happy. I guarantee you Buhari , via Daura n Kyari is very much in the picture of this scam. But for Kachikwu they wwould have gone away with it smoothly

  • Ayinde

    Sincerely Buhari is responsible for the whole Buhaha, its all skewed to satisfy his desires. But really doubt if the president is fit and proper to adorn the Garment is being made to adorn.

  • chat4zeal

    Kwachikwu is only trying to be relevant. Who knows the minister of state and chairman of whatever board during the last administration. GEJ, Adoke and Madueke were fingered in the malabu scandal, Madueke was fingered for the oil swap, why weren’t the minister of state…or chairman of whatever board fingered. It shows those positions are irrelevant to contract and procurement

  • Bundle of ignorerant​(Eid) and classical mediocrity coin professional – ,no comments.

  • augustine akinyemi

    Dr. M BARU is an over-pampered civil servant; he will like to play an ANDREW YAKUBU before Madam DIEZANI came on board and all the paper-work at NNPC favours his action, hence he does not want to work under a nosy and sound supervising Minister like IBE KACHIKU. Period. You can read him from his letter of defence. But like Femi Falana suggested, PMB should give up the Ministry of Petroleum portfolio; he is NOT sharp enough to handle the technocrats at NNPC who have constituted themselves into a government within a government, And the Federal Government after the Senate’s thorough probe should dissolve all the latest appointments and contracts singularly carried out by BARU; they are all illegal.

  • man leader

    They should pay this Kachikwu man his 50% for whistle blowing abeg. Then you can retire

  • LionHeart

    It is now obvious to Nigerians that Kachikwu is just a figurehead and this was Buhari’s plan all along. He just made Kachikwu the minister of states for Petroleum to please the SS and SE.

  • Muhammad Lawan

    The GMD may be correct on the processes and procedures of contract award and other commercial transactions in the NNPC. But he is silent on the duties and responsibilities of the Board. I know from experience that most boards are not involved in the processes that lead to contract awards, but they have overall responsibility for supervising the operations of the organisation including appointments, promotion, discipline and approval of the annual budget and work plan. So you see even though the Board may not be involved in contract award, the management must as a matter of duty always brief the board on the problems and progress of the implementation of the budget and work plans periodically. This included award of contract! You see the devil is always in the detail. The two must find ways of working together for the overall benefit of the organisation.

  • Muhammad Lawan

    With due respect Mr President must learn how to handle official communication. I didn’t mention his handlers because I know they don’t know. The letter from the Minister should have been passed to the SGF who would obtain the comments of the GMD. This would be passed to the scheduled officers under him for analysis and advise. The SGF would if he agrees with their advise foward this to Mr President for his consideration. But the whole issue in my opinion should have been handled differently. The invitation extended to the Minister and GMD should have been done after and not before the opinion of the SGF has been obtained. That letter cannot be discussed by Mr President with the two without obtaining opinions from the right quarters. I doubt very much if the villa as it is constituted today can do better than the OSGF in this regard!