By John Okoh
The Senate Wednesday swung into action in the crisis of confidence and supremacy brewing in the Nigeria National Petroleum Corporation NNPC, by setting up a panel to probe the Group Managing Director of the Nigeria National Petroleum Corporation, Dr. Maikanti Baru. This follows the allegations made against Baru in a petition to President Muhammadu Buhari by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.
The panel to be headed by the Chairman, Committee on Petroleum Resources Downstream, Senator Tayo Alasoadura will also investigate the policy introduced by the NNPC Trading Limited, a subsidiary of the corporation, among other issues
Kachikwu, had on August 30, petitioned President Muhammadu Buhari, alleging acts of insubordination and humiliation by the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Maikanti Baru.
The letter, titled ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ written on 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 of the national oil firm, which is 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.”
“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,”
“The effect of the attitude of the GMD and the sidelining of the board is that there is a fear culture in the NNPC,”
“We save 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.”
Kachikwu said against the rules, some major contracts involving huge sums beyond the brief of Baru, were never reviewed or discussed with him or the board of NNPC Some of them were 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.
