NNPC’s Claims On Approval Of Contract False – Kachikwu Associates

Nigerian National Petroleum Corporation, claims NNPC’s Tenders Board is the only legal body to approve contracts and not the Board is false.

Dr. Ibe Kachikwu, the associates of the Minister of State of Petroleum, stated this in a fact-sheet available to The Nation on Wednesday.

The fact-sheet was in response to NNPC’s Monday statement, which described Kachikwu as a “liar” with his August 30 memo to President.

Kachikwu wrote to President Muhammadu Buhari, alleging that NNPC’S Group Managing Director, Maikanti Baru

  • awarded $25billion contracts unilaterally;
  • ran a “bravado” management; and
  • made appointments without consultations.

Baru denied it all. He said no money was involved in the contracts and that the NNPC Tenders Board had no business reporting to Kachikwu and the corporation’s Board. The Presidency backed his position.

The fact-sheet, however, said: “Baru’s claim that the NNPC Tenders’ Board, not the NNPC Board, is the right body to approve such contracts in question is also false. According to Public Procurement Act’s Section below:

S.20. (1) The accounting officer of a procuring entity shall be the person charged with line supervision of the conduct of all procurement processes; in the case of ministries the Permanent Secretary and in the case of extra-ministerial departments and corporations the Director-General or officer of co-ordinate responsibility.

(2) The accounting officer of every procuring entity shall have overall responsibility for the planning of, an organization of tenders, evaluation of tenders and execution of all procurements and in particular shall be responsible for.”

“Apart from the GMD as the appointor of the Tenders’ Board, which he also chairs, his duty is pure to plan, organise, evaluate, execute and supervise the conduct of ‘procurement processes’ and not to approve contracts above his threshold under the seal of the Corporation.

“He cannot plan, organise, evaluate, execute procurement process, approve and execute approved projects. He lacks the statutory capacity to be the sole determinant of due process in the corporation.

“But after the approval by the NNPC Board, President or FEC, it is worthy of note that the Tenders’ Board, according to Public Procurement Act in Section 22 (3), ‘shall be responsible for the award of procurement of goods, works and services within the threshold set in the regulations.”

“Under the seal of the NNPC Board, according to the First Schedule, Part A, Sections 11, 12 and 13 of the NNPC Act which says:

“11. The fixing of the seal of the Corporation shall be authenticated by the signature of the Chairman and any other person authorized in that behalf by the Board.

  1. Any contract or instrument, which is made or executed by any person not being a body corporate would not be required to be under seal, may be made or executed on behalf of the Corporation by any person generally or specially authorised to act for that purpose by the Board.
  2. Any document purporting to be a contract, instrument or other documents duly signed or sealed on behalf of the Corporation shall be received in evidence and, unless the contrary is proved, be presumed without further proof to have been so signed and sealed.”

Nigeria Lost N2.1tn To Militancy – NNPC Boss

Nigeria has lost over N2 trillion to militancy and pipeline vandalism since the beginning of the year, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Maikanti Baru has said.

He said: “Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets.

“This implies that 60 per cent of oil production lost is NNPC-FGN equity. At an estimated price of $45 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion.

“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of national budget; and a new 1,700- kilometre pipeline,’’ he was quoted as saying by online newspaper Premium Times

To resolve this, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the amnesty programme.

He added that the NNPC planned “to renegotiate terms of Production Sharing Contracts with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government”.