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How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru - Politics - Nairaland

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How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by deji17: 3:44am On Oct 08, 2017
REVEALED: How NNPC Act, BPP contract clause frustrated Kachikwu’s bid to micro-manage Baru
By Ibrahim Suleiman - October 6, 2017


More damning insights have emerged on Friday as to how some legal clauses frustrated the Minister of State for Petroleum Resources, Emmanuel Kachikwu from having “supervisory powers” over the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru.

Mr Kachikwu had in a leaked 8-page letter addressed to President Muhammadu Buhari on Monday accused Mr Baru of “acts of insubordination, humiliation, disrespect and lack of due process in the award of contracts.”

On Tuesday, DAILY NIGERIAN exclusively revealed why the minister reported the GMD to the President.

But in what could be seen as a new twist to the raging rift between the two oil czars, a senior NNPC official who preferred not to be named exclusively told DAILY NIGERIAN that the fight was beyond what was contained in the letter.

“The fight between Kachikwu and Baru emanated from two clauses within the NNPC. And these are the NNPC Act and the Clause in a correspondence from the Bureau of Public Procurement (BPP) to the then GMD of NNPC (Ibe Kachikwu) regarding contracts.

“In the NNPC Act,” the source added, “it was stated clearly that the GMD NNPC will report directly to the Substantive Minister of Petroleum Resources, in this case President Muhammadu Buhari. Sadly for Kachikwu, the Act was silent on the GMD reporting to him.



“Secondly, in a letter dated June 26, 2015, the BPP clarified a clause regarding the power of the NNPC Tenders Board (and not the NNPC Board) to award contracts without recourse to the Minister of State.

“The approval limit of the NNPC Tenders Board is $20m. But where such contracts exceed the tenders board’s limits, approval must be sought from the Federal Executive Council (FEC).

“And in the case of the $26billion Kachikwu claimed Baru spent without due process, it was the same Federal Executive Council, with Kachikwu as a member, that approved the contracts. How would Baru, who is not even a member of FEC, be blamed for side-stepping the minister and bypassing due process?” the insider queried.




BPP’s clarification to Mr Kachikwu on powers of NNPC Tenders Board to award contracts
Also, a correspondence seen by DAILY NIGERIAN from the BPP to the NNPC during Kachikwu’s reign as GMD/Minister of State for Petroleum, read in part: “The [NNPC] Governing Board is responsible for approval of the work programmes, corporate contract plans and budget while the [NNPC] Tenders Board is responsible for approval of day to day procurement implementation.”

According to the source, Mr Baru knew all these provisions very well and was using both in his dealings with Mr Kachikwu.

“Strangely, the same Minister who obtained such clarifications from the BPP while serving as GMD NNPC has now turned against it,” the source added.



According to him, “the whole bone of contention was because while Mr Kachikwu realized he was powerless to influence Baru as Minister of State in terms of contracts and other demands, the Minister could still not stand watching Baru having unfettered access to the President.”

The source further revealed that shortly after becoming the Minister of State and lost the authority to award “juicy contracts”, Mr Kachikwu successfully coned the President to make him Chairman of the NNPC Board.

“Unfortunately again for Kachikwu, he has no much influence on the GMD and his activities,” the source noted.

On the alleged skewed appointments, the source explained that what Mr Baru did was well in order as it was a continuation of most of the restructuring efforts earlier embarked by the Minister, while serving as the GMD NNPC.

“If you look at it critically, we can say nothing has changed. After all, Baru has been magnanimous enough to retain Kachikwu’s allies. The entire Chief Operating Officers (COO) of the Corporation were brought in by Kachikwu from some oil companies operating in Nigeria.

“For instance, among the seven Chief Operating Officers (COO/GEDs) currently working under Baru, five were actually appointed by Dr Kachikwu, three of whom came along with him from the International Oil Companies (IOCs),” he noted.

DAILY NIGERIAN gathered that while Mr Kachikwu brought in Babatunde Adeniran (COO Ventures), Anibor Kragha (COO Refineries) and Henry Ikem-Obih (COO Downstream) from outside, Isa Inuwa (COO Corporate Services), Bello Rabiu were sourced from within. Chidi Momah, who is still Secretary to the Corporation, was also hired by Mr Kachikwu.

The source finally noted that Mr Kachikwu’s letter has now torn apart what is left of the relationship between the two parties. “For now, it is beyond repair, and until Mr. President swings into action quickly, the end to this unhealthy rift may not be in sight,” he added.

When contacted, Mr Kachikwu’s spokesman, Idang Alibi, confirmed that only the NNPC Tenders Board not NNPC Board chaired by his boss, has the authority to award contracts.

Asked to further explain whether his boss was present at the Federal Executive Council meeting where the $26billion contract was approved, Mr Alibi declined comment, requesting that the questions be mailed to him.

He however did not provide the email address where DAILY NIGERIAN can send him the inquiries.

https://www.google.com.ng/amp/s/dailynigerian.com/headline/revealed-nnpc-act-bpp-contract-clause-frustrated-kachikwus-bid-micro-manage-baru/amp/

4 Likes 1 Share

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Patokeikem: 4:00am On Oct 08, 2017
Ebi Like Say, Every Allegations Is Indirectly Coinning Itself To The Sender.

31 Likes 2 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by 9jvirgin(m): 4:04am On Oct 08, 2017
Gobe

8 Likes 1 Share

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by ubergold(m): 4:55am On Oct 08, 2017
Nicely said. Damage control at work.

A scenario just keep playing in my head.

Baru and his team presents already prepared documentation of contracts in the FEC meeting with most likely the VP presiding and with all the ministers including Kachukwu in attendance. And when the Kachukwu objects stating his office has neither vetted nor approved the contracts, Kyari, Baru, and some other ministers in the loop that may stand to benefit wades in saying Baba has been informed in London and has approved it.

There you go, that should fly as due process.

What's the use of having a minister of state of Petroleum if his office can be circumvented in contracts that can well be described as milestone projects of this administration?

How do you think the ones APC are claiming Deziani stole left the system? NNPC was said to be riddled with curruption because it doesn't follow due process and yet this administration is still maintaining it only this time they are doing it in monumental proportion even when the economy has nose-dived. THINK!!!!

155 Likes 13 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by ProWalker: 4:59am On Oct 08, 2017
The Kachikwu guy is greedy

17 Likes 2 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Atiku2019: 5:01am On Oct 08, 2017
Patiently waiting....

Corrupt Government

5 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Blue3k(m): 5:03am On Oct 08, 2017
The plot thickens yet again with a good counter punch. Theirs always 3 sides to a story. His, hers and truth. I'm going to watch and wait before making judgements on this beef. Let's see what senate uncovers.


[NNPC] Governing Board is responsible for approval of the work programmes, corporate contract plans and budget while the [NNPC] Tenders Board is responsible for approval of day to day procurement implementation.”
“And in the case of the $26billion Kachikwu claimed Baru spent without due process, it was the same Federal Executive Council, with Kachikwu as a member, that approved the contracts. How would Baru, who is not even a member of FEC, be blamed for side-stepping the minister and bypassing due process?” the insider queried.


Front Page: lalasticlala

9 Likes 2 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by baylord101(m): 5:43am On Oct 08, 2017
Nigerian knw how to manipulate and twist our law to their favor corruptionally*

16 Likes 1 Share

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by meforkene(m): 5:45am On Oct 08, 2017
Okay.
Good thing is we should all be thanking Kachikwu for exposing this "official " and contract bound theft of $26Bn( > 2017 budget + 2trillion naira change) cos we wouldn't have heard of it at all.
At least all these talk of pighting kworopshun would die down.
With this meaningless contract up there, there's no way Diezani should be seen as corrupt too.(Please who noticed the bias of the claimed NNPC official...basing his defence on the "problem "as in personal beef between 2 officials)
Since they knew about this contract, Why wasn't Kachikwu put in order since August?..(abeg who una dey fool)

This contract /defence clearly defines FANTASTICALLY CORRUPT!

52 Likes 4 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by seunmsg(m): 5:58am On Oct 08, 2017
Kachikwu as minister of state is a toothless bulldog. If the president cannot upgrade him to a full minister, he should resign instead of getting himself rubbished.

67 Likes 7 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by meforkene(m): 6:06am On Oct 08, 2017
Summary :
. ;DThis time around, we catch Bubu with d pot cover and very big meat and ogbono soup dey drip from him hand!
His defense : "but daddy said that everything in this house belongs to me too".THIEF!

50 Likes 3 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Bari22: 6:26am On Oct 08, 2017
Truth will come out small small

Let s hear from Baru also before concluding
Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by amunkita(m): 7:12am On Oct 08, 2017
Hahahahaha..
I have awaited such concoction, the north would certainly win this war ...

If FEC was aware of the contract nd President Buhari aware, been the Minister of Petroleum, why did they not call Kachikwu to order when he wrote months back but started running around when the letter leaked online..

Election is near nd we know election finance comes from NNPC....

Let them continue deceiving those who voted them..

97 Likes 10 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by NigerDeltan(m): 7:13am On Oct 08, 2017
Useless people!

Just like saying Osibanjo cannot query Amaechi or Fashola

10 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by greatiyk4u(m): 7:57am On Oct 08, 2017
There is more to this story than meets the eyes


However, I think Kachikwu was smart by half

Baba was still in the hospital as at when this letter was originally written,

1 Like

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by vedaxcool(m): 8:04am On Oct 08, 2017
The truth shall be revealed eventually.

1 Like

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by aolawale025: 8:07am On Oct 08, 2017
This is a poor attempt to white-wash the NNPC scandal. Nigerians are mostly concerned about what happened to the 26b dollars

21 Likes 2 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by baralatie(m): 8:24am On Oct 08, 2017
aolawale025:
This is a poor attempt to white-wash the NNPC scandal. Nigerians are mostly concerned about what happened to the 26b dollars
and both kachikwu and baru

4 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by jpphilips(m): 8:24am On Oct 08, 2017
The only way out of this crisis is for the President to appoint Kachikwu as the Minister for petroleum.

16 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by baralatie(m): 8:25am On Oct 08, 2017
deji17:

REVEALED: How NNPC Act, BPP contract clause frustrated Kachikwu’s bid to micro-manage Baru
By Ibrahim Suleiman - October 6, 2017


More damning insights have emerged on Friday as to how some legal clauses frustrated the Minister of State for Petroleum Resources, Emmanuel Kachikwu from having “supervisory powers” over the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru.

Mr Kachikwu had in a leaked 8-page letter addressed to President Muhammadu Buhari on Monday accused Mr Baru of “acts of insubordination, humiliation, disrespect and lack of due process in the award of contracts.”

On Tuesday, DAILY NIGERIAN exclusively revealed why the minister reported the GMD to the President.

But in what could be seen as a new twist to the raging rift between the two oil czars, a senior NNPC official who preferred not to be named exclusively told DAILY NIGERIAN that the fight was beyond what was contained in the letter.

“The fight between Kachikwu and Baru emanated from two clauses within the NNPC. And these are the NNPC Act and the Clause in a correspondence from the Bureau of Public Procurement (BPP) to the then GMD of NNPC (Ibe Kachikwu) regarding contracts.

“In the NNPC Act,” the source added, “it was stated clearly that the GMD NNPC will report directly to the Substantive Minister of Petroleum Resources, in this case President Muhammadu Buhari. Sadly for Kachikwu, the Act was silent on the GMD reporting to him.



“Secondly, in a letter dated June 26, 2015, the BPP clarified a clause regarding the power of the NNPC Tenders Board (and not the NNPC Board) to award contracts without recourse to the Minister of State.

“The approval limit of the NNPC Tenders Board is $20m. But where such contracts exceed the tenders board’s limits, approval must be sought from the Federal Executive Council (FEC).

“And in the case of the $26billion Kachikwu claimed Baru spent without due process, it was the same Federal Executive Council, with Kachikwu as a member, that approved the contracts. How would Baru, who is not even a member of FEC, be blamed for side-stepping the minister and bypassing due process?” the insider queried.




BPP’s clarification to Mr Kachikwu on powers of NNPC Tenders Board to award contracts
Also, a correspondence seen by DAILY NIGERIAN from the BPP to the NNPC during Kachikwu’s reign as GMD/Minister of State for Petroleum, read in part: “The [NNPC] Governing Board is responsible for approval of the work programmes, corporate contract plans and budget while the [NNPC] Tenders Board is responsible for approval of day to day procurement implementation.”

According to the source, Mr Baru knew all these provisions very well and was using both in his dealings with Mr Kachikwu.

“Strangely, the same Minister who obtained such clarifications from the BPP while serving as GMD NNPC has now turned against it,” the source added.



According to him, “the whole bone of contention was because while Mr Kachikwu realized he was powerless to influence Baru as Minister of State in terms of contracts and other demands, the Minister could still not stand watching Baru having unfettered access to the President.”

The source further revealed that shortly after becoming the Minister of State and lost the authority to award “juicy contracts”, Mr Kachikwu successfully coned the President to make him Chairman of the NNPC Board.

“Unfortunately again for Kachikwu, he has no much influence on the GMD and his activities,” the source noted.

On the alleged skewed appointments, the source explained that what Mr Baru did was well in order as it was a continuation of most of the restructuring efforts earlier embarked by the Minister, while serving as the GMD NNPC.

“If you look at it critically, we can say nothing has changed. After all, Baru has been magnanimous enough to retain Kachikwu’s allies. The entire Chief Operating Officers (COO) of the Corporation were brought in by Kachikwu from some oil companies operating in Nigeria.

“For instance, among the seven Chief Operating Officers (COO/GEDs) currently working under Baru, five were actually appointed by Dr Kachikwu, three of whom came along with him from the International Oil Companies (IOCs),” he noted.

DAILY NIGERIAN gathered that while Mr Kachikwu brought in Babatunde Adeniran (COO Ventures), Anibor Kragha (COO Refineries) and Henry Ikem-Obih (COO Downstream) from outside, Isa Inuwa (COO Corporate Services), Bello Rabiu were sourced from within. Chidi Momah, who is still Secretary to the Corporation, was also hired by Mr Kachikwu.

The source finally noted that Mr Kachikwu’s letter has now torn apart what is left of the relationship between the two parties. “For now, it is beyond repair, and until Mr. President swings into action quickly, the end to this unhealthy rift may not be in sight,” he added.

When contacted, Mr Kachikwu’s spokesman, Idang Alibi, confirmed that only the NNPC Tenders Board not NNPC Board chaired by his boss, has the authority to award contracts.

Asked to further explain whether his boss was present at the Federal Executive Council meeting where the $26billion contract was approved, Mr Alibi declined comment, requesting that the questions be mailed to him.

He however did not provide the email address where DAILY NIGERIAN can send him the inquiries.

here come version2

1 Like

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Sirjamo: 8:35am On Oct 08, 2017
seunmsg:
Kachikwu as minister of state is a toothless bulldog. If the president cannot upgrade him to a full minister, he should resign instead of getting himself rubbished.
Gbam, you nailed it. I always have reservations about that "minister of state'' thing, there is limit to what anyone can do in that capacity.

9 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by veacea: 1:09pm On Oct 08, 2017
PGA ooooo
Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by datola: 1:09pm On Oct 08, 2017
They are tring to box Kachukwu to a tight corner.

Hope the man will not bite his fingers regretting the day he decided to leave a curative job to settle for a Nigerian political appointment.

Who is Baru and his achievements in the oil industry?

16 Likes 3 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by kay29000(m): 1:10pm On Oct 08, 2017
Hmm
Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Montaque(m): 1:15pm On Oct 08, 2017
Mr. lbe is just getting to know his position in the FEC

5 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by OyiboOyibo(m): 1:19pm On Oct 08, 2017
APC n deir stupid propagandas.....

4 Likes 1 Share

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Sava4: 1:21pm On Oct 08, 2017
Fx


There is fraud going on. The name of the company is Nigeria national petroleum Company.. the sudden change of name.. make me wonder..

What is going on

3 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by oshe11: 1:22pm On Oct 08, 2017
short man
Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by rekeson: 1:22pm On Oct 08, 2017
In a bid to justify this looting and shameful disregard for due process, APC govt is now telling us the GMD of NNPC is superior to the Minister Of States For Petroleum.

How shameful will things get b4 this clueless govt is disbanded ?

The other time it was "the EFCC chairman does not need Senate approval".

I guess APC is governing with an alternate Constitution.

And those useless BMC nitwits saying the money is not missing, I guess the contracts we are talking about must be the construction of new refineries cos the last we heard, the concession of the present refineries is underway.

So can Buhari's ass-lickers tell us the NNPC contracts that requires an amount almost equal to our national budget ?

ROGUES IN WHITE GARMENTS

45 Likes 4 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by Memphis357(m): 1:23pm On Oct 08, 2017
Mallams and looting na like 5 and 6.

10 Likes

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by SalamRushdie: 1:23pm On Oct 08, 2017
Stupiid and poorly thought out after- thought by the Buhari Cabal , they even forgot to add the dates of the FEC meetings were these contracts were approved ,abi was Kachikwu sleeping in the meeting? or is there another FEC we dont know about? This govt is clearly corrupt

30 Likes 2 Shares

Re: How NNPC Act, BPP Contract Clause Frustrated Kachikwu’s Bid To Micro-manage Baru by GavelSlam: 1:24pm On Oct 08, 2017
jpphilips:
The only way out of this crisis is for the President to appoint Kachikwu as the Minister for petroleum.

Because the Act does not support Kachikwu's allegations?

Perhaps because he has more years in the oil industry than Baru?

The thing is, Kachikwu feels a bird without feathers as the NNPC GMD really doesn't answer to him as discovered.

Painful as it is, he simply has to suck it up or resign.

I'm more in support of him sucking it up.

Slight brush on his ego but nothing more.

He can appeal to the president to see if his portfolio could oversee that of the NNPC especially as regards contract award, which appears to be the bone of contention.

As it appears, that Kachikwu was not carried along doesn't mean due process wasn't done.

8 Likes 3 Shares

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