BEVERLY HILLS, October 11, (THEWILL) – Some associates of the Minister of State for petroleum, Dr. Ibe Kachikwu, have responded to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, in a fact-sheet meant to clarify issues surrounding the disputed $25billion transactions by NNPC.
THEWILL recalls that Kachikwu wrote to President Muhammadu Buhari, alleging that Baru awarded $25billion contracts unilaterally; ran a “bravado” management; and made appointments without consultations.
Responding, Baru denied the allegations declaring that no money was involved in the contracts and that the NNPC Tenders Board had no business reporting to Kachikwu and the corporation’s Board.
But Kachikwu’s loyalists described Baru’s response as contradictory adding that NNPC’s defence is unconvincing as they raised six posers for Baru and NNPC to answer with a fact sheet based on the 1999 Constitution, the NNPC Act and the Public Procurement Act,
The six posers are: What becomes of Section 130(2), Section 148(1) of the 1999 Constitution and Section 1(1) of the NNPC Act if Baru said he did not have to consult the Minister and NNPC Board?
How can the NNPC Tenders Board appointed by Baru be responsible for approving contracts in the light of Section 20(1) of the Public Procurement Act?
What is the proof that Kachikwu as NNPC GMD did the same things that Baru is doing?
How can NNPC Board oversee budget without information?
Why was Baru silent on the controversial appointments he made without briefing the board? Did the silence confirm that the appointments were irregular or wrong?
Are there standards of transparency and due process when NNPC awarded contracts of that magnitude without carrying NNPC Board along?
The fact-sheet reads in part: “While not joining issues, it will be worrisome if relevant section of Nigerians and keen watchers of oil and gas industry are not put through on the response of the NNPC GMD, Dr. Maikanti Baru on policies on public procurement as enshrined in the relevant laws and regulations governing procurement in Nigeria, which include Public Procurement Act 2007 and Procurement Procedures Manual.
“And any procurement system that fails to take into consideration these relevant sections stimulated hesitation to compete, submission of inflated tenders containing a risk premium, or submission of deflated tenders followed by delayed or defective performance, collusion in bribery, bad value for money, and betrayal and abuse of the public trust for personal gain.
“Dr. Kachikwu’s leaked memo to the President sought among other things, to promote application of fair and competitive standard and ethical practices. But in his public response to the private memo to the President, it is clear to all fair-minded persons that the attempt of the NNPC GMD, Dr. Maikanti Baru, to defend himself is unconvincing, clear embarrassment to the person of President Buhari, his dream of sanctified institutions, and our dear constitution.
“The public response to the issues raised in the leaked memo to the President is a potpourri of contradictions, distortions, and clear breach of facts and logic. The ministerial issue as viewed lacks substance. The 1999 Constitution of the Federal Republic of Nigeria (3rd alteration) is very clear on the powers of the President of the Federal Republic.
“By virtue of Section 130(2) of the Constitution, “the president shall be the Head of State, the Chief Executive of the Federation and Commander-in-Chief of the Armed Forces of the Federation,” and by virtue of Section 148(1) of the Constitution, ‘the president may, in his description, assign to the Vice-President or any Minister of the Government of the Federation responsibility for any business of the Government of the Federation, including the administration of any department of government.’
“So by the enshrinement of that Section 148(1) above, and the supremacy of the Constitution, according to Section 1 sub-section (1), Baru’s submission as regards Kachikwu’s role as an appointed Minister by Mr. President is wrong, null, void and inconsistent with the constitution to the extent of its inconsistency.
“Again apart from the fact that every Board of parastatals, extra-ministerial or corporations etc. are the supervisory entities of such, the NNPC Act in Sections below are clear
“S. 1(1) says: ‘There shall be established a corporation by the name of the Nigerian National Petroleum Corporation (hereinafter in the Act referred to as “the Corporation”) which shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name.
(2) The affairs of the Corporation shall be conducted by a Board of Directors of the Corporation which shall consist of a Chairman and the following other members, that is (a) the Director-General, Federal Ministry of Finance and Economic Development;
(b) The Managing Director of the Corporation; and
(c) Three persons to be appointed by the National Council of Ministers, being persons who by reason of their ability, experience or specialised knowledge of the oil industry or of business or professional attain.”
“Sub-section (2) of the Act is clear that the NNPC Board has overall supervisory powers over the corporation. How can these supervisory powers not include some kind of oversight on contracts worth billions of dollars?
“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, 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 purely 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.
“Any contract or instrument, which if 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.
“Any document purporting to be a contract, instrument or other document 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.”
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