BARU AWARDED $25BN CONTRACT WITHOUT BOARD APPROVAL – IBE KACHUKWU

ABUJA, Nigeria – Minister of State for Petroleum Resources, Dr. Ibe Kachukwu has written an internal memo to President Muhammadu Buhari, who is also the Minister of Petroleum, alleging that the Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru awarded contracts to the tune of $25 billion without approval by the NNPC board.

According to the memo, the contracts included 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.

The minister also accused Baru of acts of insubordination and humiliation alleging that Baru has also employed people into the NNPC without recourse to the board.

In the letter, ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ dated 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, chaired by the minister of state.

“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, ” he said. He said that while other agencies were cooperating, same cannot be said of the NNPC, a development he said is inimical to ongoing reforms. He said that even when he raised objections to recruitment exercise, the GMD ignored him.

“Not only did he (Baru) not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation on board concurrence.

“Mr. President, please note that there is a board service committee, whose function is to review potential appointments and termination of senior staff prior to implementation. This committee was also not consulted,” he said, adding “The effect of the attitude of the GMD and the sidelining of the board is that there is a fear culture in the NNPC,” he noted.

“We saved 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 the NNPC to run as a proper institution and report out along due process lines to the board and that Your Excellency instruct that all reviews be done with the minister of state prior to your decision.

“That to set right examples, you approve that the recently announced reorganisation changes be suspended until the GMD, myself and the board have made relevant input to same. This will send a clear signal of due process and transparency.

“That Your Excellency encourage joint presentation meeting between head of parastatals and the minister of state to you as to encourage a culture of working together and implant discipline in the hierarchy,” he said.