Why I did not consult Kachikwu, NNPC board on multi-billion dollar contracts – GMD Maikanti Baru

NNPC TOWERS

The embattled Group Managing Director of the state oil firm, NNPC, Maikanti Baru, made his first public defence of the allegations against him, saying he did no wrong.

Mr. Baru has faced stringent criticisms since a letter written by the Minister of State for Petroleum, Ibe Kachikwu, leaked to the media.

In the letter addressed to President Muhammadu Buhari, Mr. Kachikwu, who is also the chairman of the Board of NNPC, accused Mr. Baru of illegality by awarding contracts worth about $25 billion (N9 trillion) without following due process in consulting the NNPC Board.

He also accused Mr. Baru of insubordination and improper appointments in the state oil firm.

In his response, sent to PREMIUM TIMES on Monday, Mr. Baru admitted not consulting the NNPC board in the contract awards, saying such consultations were not necessary as he got approvals for his actions from President Muhammadu Buhari.

“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,” Mr. Baru said. “What was required was the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum, or the Executive Council of the Federation, FEC.

“There were situations where only approval by the NNPC Tenders Board was required, while in other cases, based on the threshold, the award must be submitted for presidential or FEC approval.”

Mr. Baru’s stance appears to conflict with Section 2 of the NNPC Act which states that “the affairs of the Corporation (NNPC) 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.”

The GMD’s position would, therefore, imply that the NNPC “affairs” to be conducted by the board excludes contractual matters, a stance he emphasised.

According to him, the NNPC Board has no role in contracts approval process, as members were appointed by government for the purpose of approving NNPC’s work programmes, corporate plans and budgets.

VALUE OF CONTRACT

Mr. Baru also questioned Mr. Kachikwu’s valuation of the contracts awarded without consulting the NNPC Board.

Citing both the Crude Term Contract and the Direct Sale and Direct Purchase, DSDP, agreements, Mr. Baru said contrary to Mr. Kachikwu’s allegations, no specific values of $10 billion and $5 billion respectively were attached to each transaction to warrant them being classified as contracts above NNPC Tenders Board limit.

He said the contracts were mere shortlist of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms, which were not required to be presented as contracts to the NNPC Board.

Describing as “most unfortunate” allegations by the minister that he was not involved in the 2017/2018 contracting process for the Crude Oil Term Contracts, COTC, Mr. Baru said Mr. Kachikwu was not only consulted, but his recommendations were taken into account in following laid down procedures for the award of the contract.

He said the NNPC contracting process was governed by the NNPC Act and the Public Procurement Act, 2007 (PPA), which spell out the procurement method and thresholds of application as well as 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, of March 11, 2009.

In line with the NNPC procurement process, Mr. Baru said, authority to approve contracts resided with the NNPC Tenders Board, NTB, and contracts above certain threshold would then be referred to FEC for approval.

Under the NNPC contracting process, Mr. Baru said, the NTB is authorised to approve contracts valued up to a maximum of N2.7 billion, or $20 million; while contracts above that value would be sent to FEC for approval upon receiving certificate of no objection from Bureau for Public Procurement.

On the other hand, he said, the NTB was responsible for approval of day-to-day procurement implementation.

Members of the NTB consist the GMD NNPC as the Chairman/chief accounting officer, with heads of department (Group Executive Directors) as members and the head of procurement (Group General Manager) as the secretary of the NNPC Tenders Board.


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  • Haruna

    The reason is because of your desire to steal for yourself and steal for your principal. Therefore, both of you are thieves. I did not even bother to read his rat ass article.

    • Eluba Inas

      Then you shall not judge if you are true to yourself.

      • Law Offices Kapital City

        @davidsonlawoyin:disqus @

        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 violating the NNPC Act on authorization.

    • Anonymous

      Don’t mind them, they want to use northern factor and islam sentiments to cover their stealing as if Islam or north permits stealing.

  • 45Degree

    Nigeria has a nice way of making a somewhat simple thing “EXTREMELY” difficult. Kachikwu is supposed be a boss of Baru BUT somehow, Baru can get things done without the knowledge of his boss? Where is justice in ALL this? But Kachikwu, who by the way occupies one of the federating State’s slot (federal character) should NOT complain? Buhari is being smart by halve. You retain the Petroleum Minister post knowing (Baru, a northerner) would be the one wielding the power. Buhari better do something fast because Kachikwu State lays the golden egg. We are watching!!!

  • curseless

    President Buhari can not play the Ostrich with this particular issue. He must publicly address this issue otherwise his Mr integrity profile will be badly hit.

    • Jon

      What? Buhari has a history of stealing oil revenues starting from 1977 to Abacha regime and till today.

    • ucheyahct

      Well, he cannot do what you expected of him, simply because the cabal is in sync with BARU. As a matter of fact, the day BUHARI demoted KACHIUKWU, was the day his wings were clipped. BUHARI is the oil minister of Nigeria, while BARU is the CEO, period, and this can only happen in a country, where the NORTH does not contribute even one drop of oil into Nigeria economy.

  • Capo de Capi

    @45degree:disqus

    Why Alhaji Maikanti Kacalla Baru of NNPC is an illiterate

    I HAVE NOW COME TO THE CONCLUSION that the Group Managing Director of NNPC,
    Alhaji Maikanti Kacalla Baru, is a certificated illiterate. I hold this opinion on the fact
    reported that Alhaji Maikanti Baru takes the view that “…..he NNPC Board has no role
    in contracts approval process, as members were appointed by government for the
    purpose of approving NNPC’s work programmes, corporate plans and budgets”.

    Only a stark illiterate like Alhaji Maikanti Kacalla Baru can look at Section 2
    of the NNPC Act, which says THE BOARD OF DIRECTORS OF NNPC
    SHALL RUN THE AFFAIRS OF NNPC,
    and interpret that to mean
    that decisions on contracts to be done by NNPC are excluded from
    the meaning of the legal power to”….run the affairs of the NNPC”,
    as granted to the NNPC Board of Directors by the NNPC Act.

  • Anonymous

    And this is your submission and defence? This is how you many to run NNPC? as Northern Nigerian Peoples Corporation? A federal,government company and parastaal run as a cabal private company? With no due process, NO checks and balances? So u cn make appintments and violate federal character? With all the past huge corruption, u have said it all and it is very clear to me, u said that u got approval from Buhari who has asked for sanity to prevail to continue this nonsense, I do not blame u all, I blame the sentiments fools who are so blind they can’t see that Buhari has no integrity? They cannot see that Buhari is a lie, THEY LIED about his age, health, sincerity, integrity, education, qualification, competence, BUHARI HAS REVEALED AND FINISHED HIMSELF WITH THE MAGU, BABACHIR, OKE AND NOW BARU SYSTEMATIC CORRUPTION WHICH SURROUNDS BUHARI AND ASO ROCK VILLA AND I AMMSORRY FLR ALL THE APC SENTI,ETSL FOOLS IN ASO WHO ARE SO BLONDED THEY CAN’T SEE WHAT IS HAPPENING, THEY CAN’T SEE THAT WHAT WE HAVE IN ASK ROCK IS ACTUALLY A CPC CABAL GOVERNMENT, a president APPOINTS a supervising monster but does not give him the authority to supervise anemones not speak to him import a YEAR? A PRESIDENT who cannot find anyone in a COUNTRY OF 150M to be substantive minister of petroleum but still things are going wrong, a presidwnt that appointees will be sending mails, memos, letters, trying to call and book appointments to see bit they will be blocked by scrupulois aso rock elements and even the president does not call or send for them? HABA!SYSTEMATIC corruption, IT IS BECAUSE BUHAR THINKS HE IS A CRAFTY DECIL THIEF, AND HE HAS U ALL FOOLEDKEEP FOOLING URSELVES WITH A LIE ANMDPACKAGED PRESIDENT WHO APPOINTS THIEVES, SIRROUMDS HIMSLF WITH THIEVES THAY HE CANNOT REPLACE, RE-SHUFFLE, CUTS HE IS CAGED, HE IS DOING HIS,OWNMRQCKET AN DTHEYMARE LACTHING ON CUTS DEY DON SEE AM FINISH, HE IS A MORON THAT IS WHY BABCHIR SAID “WHO IS THE PRESIDENT” CUS THE PRESIDENT IS NOT BUJARI, THE PRESIDENT NA WE WE. A BUJARISY CABAL HIJAKCED THE PRESIDENT, APC AND NIGERIA.

    • aboki

      Have you gone through the acts that govern operational activities of NNPC Mr anonymous?
      Names calling and abusive comments based on sentiments and inbuilt HATRED on PMB person and the government of the day only defined your ignorance.
      When KACHIKWU present his case you guys were conclusived before the other party responded.
      With facts and articulation by BARU you guys are looking at opposite side.
      You may not have the monopoly of facts as the case may be.
      Please read the BARUs presentation first and carefully dissect it item by item MR anonymous to be fair to yourself.

      • Anonymous

        U have no sense, u are a semi-illiterate, where have u seen where somebody will run a government parastataals without checks and balances? without due process? WHAT IS KACHIKWU THEN SUPERVISING AS BUHARI CALLS HIM? WHO THEN IS SUPERVISING SINCE BUHARI IS A DONZE AND A MORON WHO IS ABSENT MOST OF THE TIME AND DEOSNT EVEN SEND FOR ANYONE? MAY GOD ALMIGHTY ALLOW OTHERS RUN YOUR COMPANY LIKE THIS BEFORE U GET SENSE.

  • Arkhuma

    This Baru’s rejoinder to Kachikwu’s memo has really jolted me. I’m disappointed to admit that there’s really a dearth of decisiveness in this present government. That the President, either by the effect of his ill health or age or insouciance, has allowed his government to be rail roaded. For the head of a parastatal to lay claim that a board suitable constituted by the President based on extant acts has no business in approving the undertakings of the management is really insulting. Notwithstanding the action of the President on this matter, it is now obvious that a section of the country feels they have a permanent claim to the honey pot against all sense of fair play and decency. Anything short of firing this Baru of a guy will taint this government forever. This is a sword of Damocles dangling over the PMB presidency.

  • Ola

    This is the sort of people running the country’s affairs.
    With zero knowledge of corporate governance.
    What a shame

    • AryLoyds

      Wallahi the NNPC is now a Fulani conglomerate

  • Watch man

    I think the northern hegemony as represented by PMB structured NNPC to work the way it is going without recourse to constitutional provisions; they really wanted to sideline Kachikwu. And the president must now resign from being petroleum minister. It is obvious that Baru and Kachikwu can no longer work together. Consequently, the President (who gave room for this) must acknowledge his failure and retrace his steps.

  • New Nigeria

    I am afraid Buhari’s government will be far worse than Jonathan with such impunity we have never seen in the history of this country and sheer Northern Shenanigans against other part of the country. First, it was NHIS head against Minister of health and now NNPC GMD against Minister of State for Petroleum while the President keeps mum.
    I repent ed I supported his candidature

  • O ga ju

    @disqus_2ZP9pbGSmf:disqus

    Alhaji Baru, the Group Managing Director of NNPC, is a crook.
    He is in need of enhanced interrogation inside the cell of the EFCC.
    He said that contracts he approved have no value that he could decide.
    Yet, he felt able to sit and approve the same contracts on a figure assumption.

    His right to singularly sit and approve those contracts stop at $20million, as he admits.
    It is crookedness to say contracts estimated at $25 BILLION could somehow be under $20m.
    For lacking legal right to approve $25 BILLION singularly, Alhaji Baru committed financial crime.

  • Bassey Frank

    YOU ARE ALL HYPOCRITICAL SAINTS – FROM YOUR OGA TO THE LEAST PERSON. THE MORE YOU DIG INTO NNPC, THE MORE YOU DIVERT ATTENTION FROM YOUR CORRUPT DEALS BY VILIFYING DIEZANI ALISON-MADUEKE

  • Isyaku Muhammad

    Well, is left to you, either you consult him or not.

    • Iskacountryman

      how can he consult nyamiri?

      • Jon

        This is the way forward:

        Southern Nigeria knows 100% that Buhari and his Northern Nigeria cannot survive without Southern Nigeria. So, why can’t Southern Nigeria use that as a leverage to sound a note warning to the parasitic North to choose one of this: RESTRUCTURE or De-amalgamation. This restructuring thing needs be done real quick before Buhar, Baru and their parasitic North steal Southern oil revenue dry.

  • ucheyahct

    Ibe Kachikwu, should have known that the day BUHARI demoted him to a mere Minister of State for petroleum, a non executive position,was the day he was toast. Maikanti Baru knows this, so the next move against Kachikwu is to unceremoniously sack him, i hope he understands this.

  • Wale

    Mr Kachikwu, you lost this game dude; you lost your credibility way back with one lie after the other.
    I recalled some of your statements “this will happen in three months and that will happen in four months” but non of what you promised never happened, so those statements and promises made you a bonafide liar.

    Now you and your brother might end up in prison. Baru played a “home” game and won for now. Kachikwu thought he was so good at the game, he refused to have a trusted person to watch his back.

    Kachikwu should just resign and go enjoy your stolen money.

  • Rick Eson

    They both top key player in NNPC. As a professional Baru should at least keep him inform of event and action even though Buhari is in agreement with Baru action. Keeping him out of decision and actions is a professional disrespect for for the minister.

  • joe

    He (Kachikwu) sits directly on top you in hierarchy. Pretending as if his office does not exist is malicious and disrespectful. To say the least.

  • Krai beloved country

    @davidsonlawoyin:disqus

    Corruption of a man of integrity

    Nigerians are illiterates for the most part. Their least educated military officers who are self-promoted
    army generals and kleptomaniacs tell the daft citizens to repeat after them that Muhamadu Buhari
    is a man of integrity, and, like morons with no gumption for independent thinking, the naive people
    simply do as they are instructed, and repeat after the soldiers even as $25 billion contracts are
    wangled for Muhamadu Buhari’s cronies, friends and relatives, with no vetting done by anyone
    else apart from Muhamadu Buhari and Alhaji Baru – the Group Managing Director of NNPC.

    Until Nigerians are told to say they are hungry or suffering they lack the initiative to
    do that basic human expression except Femi Falana or Tunde Bakare tells them
    to say they are suffering or hungry. Are these people within the meaning of
    humanity? Are these evolved human beings deserving of democracy as a
    system of government based on the highest level of reasoning? Oh, no!
    These are cretins habituated to stealing. Nigerians do not think at all.
    Their educated ones are career criminals and thieves. Those who
    speak smattering English and pretend to some schooling amongst
    the Nigerians are themselves mentally disordered to feel they
    must declare support for Alhaji Baru for robbing the country
    by finessing criminal means to load $25 billion state funds,
    via contracts, into the pockets of less than 50 cronies.

  • FirecloudOFGOD

    Baru,this your explanation is silly and a disgrace coming from a purportedly smart CEO as you. It also presumes that anyone who reads it is brainless!

    Buhari is playing a dangerous game and this explanation gives allowance and credence to PDP’s allegations that you or your ‘people’ in Aso Rock are already accumulating “2019 campaign funds”!

    As for Kachikwu, sorry mate, your office is looking totally irrelevant and your authority or input inconsequential! Take the honourable way out whilst ‘the iron is hot’! This is more so, as you do not want to be like Okonjo that hung on to the coat tails of GEJ, until she was totally smeared with the same corruption brush as Madam Peace! Hit the road Jack.

    Baru has drummed up support from his ‘over fed’ Union leaders and his Ultimate boss; who happens to be the Substantial petroleum minister and the President looking for re-election!

    • Fantastico2000

      @Ola_joe:disqus

      It is a tragedy that the direct effect of electing Muhamadu Buhari as president of Nigeria is this wholesale

      stealing of Nigeria’s crude oil assets and widespread illiteracy in public administration of Nigeria. Never has
      anyone employed by a corporation who, whilst still in employment, sat in judgment over the Board of Directors
      of that corporation, and declared that the Board of Directors has no right or power to run the affairs of the
      corporation according to his say-so.

      This is what Alhaji Baru, the Group Mnaging Director of NNPC has just done in his own words. But since President Muhamadu Buhari is himself half-educated and often derided as a Primary Six certificate president, Buhari does not see the gross insubordination and gross misconduct of Alhaji Baru which gets refracted on Buhari’s tribal lens to look normal, as Hausa/Fulani born to rule benighted mentality. Muhamadu Buhari is the cause of all that’s been
      going terribly wrong with Nigeria since the year 2015, as the country fell into recession and now swirls in chaos.

  • Juris doctora

    @FirecloudOFGOD:disqus

    President Muhamadu Buhari has
    committed the worst act of corruption in the history of Nigeria, akin to
    stealing by tricks, by signing $25 billion bogus contracts into the pockets of
    his selected friends behind the back of the Board of Directors of NNPC,
    contrary to to the law setting up the NNPC and vesting the Baard of NNPC with
    the exclusive power to run the affairs of NNPC. It was for similar offence of
    intentional violation of law that Chief Bode George was convicted and jailed.
    The complicity of Muhamadu Buhari in the current $25 billion contract fraud
    should produce the same judicial result.

  • Pluti

    Nigeria has been overtaken by PMB and his cohorts even with and without his support, making everyone silly conspiracy sound true but this Baru is the same corruption we thought we have voted out during GEJ exit. We still need to vote misappropriation with the face of PMB out by 2019… useless leaders