₦airaland Forum

CeterisXVII:
Oh, I love this. The facts are beginning to emerge. Wind don blow, fowl nyash don open. We are eagerly awaiting Kachikwu's response to Baru's new comments. Oya, make una start part 2!

Kachikwu said Baru was awarding contracts anyhow, and he didn't know anything about those contracts.

Baru has replied Kachikwu that most of the commercial transactions you call 'contracts' and you think needed to be routed through you, were actually not contracts. So there are actually none of your business. Secondly, approval for the ones that were contracts whose sum were above a certain level, could come from the FEC. Thirdly, you Kachikwu were well aware of those large sum contracts even at FEC level, since you are a member of FEC, so how can you turn round to say you now know nothing about them?

Oya, let Kachikwu respond. Part 2 of this drama promises to be sweet!

ninocia18:
It's disheartening how shameless these men are. The worst thing that can happen to us is to take sides or bring tribalism into this. How can two grown men who are heading an institution not know the whereabouts funds entrusted to their care? See how they just come online and be parading their irresponsibilities. I don't blame you people sha. Continue.

agabusta:
BREAKING: NNPC Scandal: Group Managing Director, Baru, breaks silence

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.

http://www.nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/860/Re-Allegations-of-Lack-of-Adherence-to-Due-Process-in-NNPC-Contract-Awards.aspx



https://www.premiumtimesng.com/news/headlines/245496-breaking-nnpc-scandal-group-managing-director-baru-breaks-silence.html

brainpulse:
[s]I must confess, this is a well detailed and packaged response quoting facts and figures.
As it is always said, there is always the second and third story to every issue, and its not the first to break the silence that is justified.

I like the role the presidency played against pressure to act without giving the opportunity to the other party to respond, this shows maturity against when GEJ sacked sanusi without investigating.

So the next thing is for an independent body to look into these weighty allegations and give recommendations to be acted and implemented.

In addition.

---

The way NNPC is structured now from what I read, it will be difficult for one person like Diezani to take absolutely decision & control of major contract unlike before.[/s]

ochardbaby:
Dem go dabaru everything,government magic.

yakbauer:
We expected this official reply, which isn't far from the top insider's report on same issue, one thing which could've been prevented from the onset was making these two work together.
This was a colossal mistake, when Kachikwu was GMD he deliberately sidelined Baru, posting him as a high level NNPC personnel to redundant positions, and even recommending his early retirement alongside some other top NNPC officials, so when Baru made it to find it is only logical to take him to a totally different ministry to head, because if there's anything one has learnt from civil servants is "never mess with the politics of civil service".
Because Baru will definitely use every rule in the book to see that he sidelines Baru, all this at the expense of 180 million ppl.

harmless011:
Typical damage control, what makes the petroleum minister ignore the memo from his minister of state. If not that the memo was leaked it would have been business as usual. Nonsense APC government.

ninocia18:
It's disheartening how shameless these men are. The worst thing that can happen to us is to take sides or bring tribalism into this. How can two grown men who are heading an institution not know the whereabouts funds entrusted to their care? See how they just come online and be parading their irresponsibilities. I don't blame you people sha. Continue.

agabusta:
BREAKING: NNPC Scandal: Group Managing Director, Baru, breaks silence

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.

http://www.nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/860/Re-Allegations-of-Lack-of-Adherence-to-Due-Process-in-NNPC-Contract-Awards.aspx



https://www.premiumtimesng.com/news/headlines/245496-breaking-nnpc-scandal-group-managing-director-baru-breaks-silence.html

Newbiee:
Ok, Kachikwu seems to be working for IPOB. The guy just cooked-up figures to tarnish the image of NNPC in particular and the administration in general. I hope he would be sanctioned, he is the real insubbordinator. I think the Kachikwu guy is suffering from the hang over of the privilege done to him by Mr. President to allow him been the GMD as well as the minister of state for petroleum at the same time. After effect of Alpha & Omega thing syndrome affecting him.

libertyhope2017

brainpulse:
I must confess, this is a well detailed and packaged response quoting facts and figures with events and present underlying conditions.

As it is always said, there is always the second and third story to every issue, and its not the first to break the silence that is justified.

I like the role the presidency played against pressure to act without giving the opportunity to the other party to respond, this shows maturity against when GEJ sacked sanusi without investigating.

So the next thing is for an independent body to look into these weighty allegations and give recommendations to be acted and implemented.

In addition.

---

The way NNPC is structured now from what I read, it will be difficult for one person like Diezani to take absolutely decision & control of major contract unlike before.

Some one is annoyed that he doesn't have absolute power and influence in taking control as he should, but the man should understand what the act says and stipulates. I believe the act is the best for the industry.

successman1234:
Honestly I am very disappointed in the President, all these are his fault.

I honestly do not think he really wants a positive change in the oil and gas sector.

NNPC is one of the major source of corruption we have in this country.

It is also the major source of income to the country.

Imagine the volume of cash found with Andrew yakubu the former GMD.

My point is this kachuwu was doing just fine as the GMD of NNPC, everyone could see the drive and energy he was putting to make this happen.

From the monthly reports he was presenting to the planned unbundling of the NNPC to other reforms he was doing.

The dude was brought in from exon mobil, he was a VP unlike this baru who has always been in the NNPC and its subsidiaries and is used to the slow, corrupt and bureaucratic processes.

The second error the president made was to make himself petroleum minister, leaving kachukwu to look like a figure head minister or a minster without porfolio. How do you take the guy from NNPC GMD and then make him minster for state.

Who the hell is the minister of state and what does he do?

Baru reports to the minister for petroleum.

To correct this problem is simple, Buhari should delegate all his powers as minister of petroleum to Kachukwu.

I also find it worrisome that the GMD could be that disrespectful to the minster.

it is like the accountant general of the federation disresptful to the minister of finance.

Kachukwu was going to revive that sector, but due to nepotism and connection that dream has been killed.

successman1234:
Honestly I am very disappointed in the President, all these are his fault.

I honestly do not think he really wants a positive change in the oil and gas sector.

NNPC is one of the major source of corruption we have in this country.

It is also the major source of income to the country.

Imagine the volume of cash found with Andrew yakubu the former GMD.

My point is this kachuwu was doing just fine as the GMD of NNPC, everyone could see the drive and energy he was putting to make this happen.

From the monthly reports he was presenting to the planned unbundling of the NNPC to other reforms he was doing.

The dude was brought in from exon mobil, he was a VP unlike this baru who has always been in the NNPC and its subsidiaries and is used to the slow, corrupt and bureaucratic processes.

The second error the president made was to make himself petroleum minister, leaving kachukwu to look like a figure head minister or a minster without porfolio. How do you take the guy from NNPC GMD and then make him minster for state.

Who the hell is the minister of state and what does he do?

Baru reports to the minister for petroleum.

To correct this problem is simple, Buhari should delegate all his powers as minister of petroleum to Kachukwu.

I also find it worrisome that the GMD could be that disrespectful to the minster.

it is like the accountant general of the federation disresptful to the minister of finance.

Kachukwu was going to revive that sector, but due to nepotism and connection that dream has been killed.

yakbauer:
We expected this official reply, which isn't far from the top insider's report on same issue, one thing which could've been prevented from the onset was making these two work together.
This was a colossal mistake, when Kachikwu was GMD he deliberately sidelined Baru, posting him as a high level NNPC personnel to redundant positions, and even recommending his early retirement alongside some other top NNPC officials, so when Baru made it to find it is only logical to take him to a totally different ministry to head, because if there's anything one has learnt from civil servants is "never mess with the politics of civil service".
Because Baru will definitely use every rule in the book to see that he sidelines Baru, all this at the expense of 180 million ppl.

Nbote:
Na me wan waste tym read all dat hocus pocus?? Why is he jus coming out now?? D question is did he bypass d minister of State or not?? Anyway we know d Minister of Petroleum was aware of all d backyard dealings..

Throwback:
You are the one aimlessly looking for missing funds.

Kachikwu never said funds were missing. He only challenged the authority of the GMD to approve contracts he felt fell under his own financial approval.

The GMD and NNPC have since provided evidence that they got what they consider by facts to be the necessary approvals before such contracts were awarded. Hence they are saying they do not need the approval of the NNPC board that Kachikwu heads, and they have provided their factual evidence to support their own position in this argument.

No money is missing, no stakeholder ever claimed such, and yes contracts have been awarded.

Bigii:
Your moniker speaks volumes of you.

You need a brain doctor to drain those pulse

GavelSlam:
In all this, it looks like you are more interested in Kachikwu being the final say in contracts. Why you would want this is up to you.

But I would come to Baru's defence here.

Simply because Kachikwu was with ExxonMobil doesn't make him more intelligent or more understanding of the workings of the industry. Certainly, not in Nigeria.

The repositioning of Kachikwu to minister of state and the upliftment of Baru to GMD has not yielded a negative impact in the industry. So trying to personalise this only displays prejudice.

If Kachikwu wasn't comfortable being minister of state, he should have thrown in the towel.

If he is only concerned about contract award in NNPC then one can conclude he is no longer serving the full interest of the nation.

It is worthy to note, Kachikwu has not suggested misappropriation by BARU. Rather, he has implied non commitance to due process which Baru in his repartee has roundly deflected.

Let's stop this issue of North vs south when we look at issues and judge strictly on the merit of the case from either party.

goodnews777:
Baru is an accredited thief. See how long it took him to figure out what to say? He employed expert cover ups to do the dirty job for him. God will surely purnish these idiots who think Nigerians are morons.

Ekwensu101:
That shows you did not read Kachiku's memo; that was even longer. And you carried it on on your head, hawked it like pure water!

CeterisXVII:
Very, very correct!! And even the explanation Baru gave shows how each step was followed, and even how the financing and approvals for the contracts were obtained. If Kachikwu had gone through the processes deployed in awarding each contract and found flaws in them, he would have had a better case, instead of just making sweeping allegations. In fact, Baru's response has weakened Kachikwu's stand. Let us wait for Kachikwu's reply. I tell you this drama is better than a Nollywood movie.

GavelSlam:
In all this, it looks like you are more interested in Kachikwu being the final say in contracts. Why you would want this is up to you.

But I would come to Baru's defence here.

Simply because Kachikwu was with ExxonMobil doesn't make him more intelligent or more understanding of the workings of the industry. Certainly, not in Nigeria.

The repositioning of Kachikwu to minister of state and the upliftment of Baru to GMD has not yielded a negative impact in the industry. So trying to personalise this only displays prejudice.

If Kachikwu wasn't comfortable being minister of state, he should have thrown in the towel.

If he is only concerned about contract award in NNPC then one can conclude he is no longer serving the full interest of the nation.

It is worthy to note, Kachikwu has not suggested misappropriation by BARU. Rather, he has implied non commitance to due process which Baru in his repartee has roundly deflected.

Let's stop this issue of North vs south when we look at issues and judge strictly on the merit of the case from either party.

Keneking:
Amazing

North 2
South 0

Baru beats Kachukwu to this and qualifies on technical grounds