I’m under no obligation to discuss contracts with you" NNPC GMD Maikanti Baru replies Ibe Kachikwu

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has broken his silence on the recent letter written by the Minister of State for Petroleum Dr Ibe Kachikwu to President Muhammadu Buhari. Kachikwu in his letter dated August 30th, accused Baru of insubordination and awarding  $25 billion contracts without going through due process.

In a statement titled ‘Re: Allegations of Lack of Adherence to Due Process in NNPC Contract Awards’ which was signed and released today by the General Manager Public Affairs,  Ndu Ughamadu, Baru said that the law and rules of NNPC do not require discussion with the Minister of state before awarding contracts.

”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 but  the President’s approval in his executive capacity as Minister of Petroleum, or the Federal Executive Council  as the case may be.”

The statement adds that contrary to Kachikwu’s claims, he was involved in the contracting process for the crude oil term contracts.

“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,” the statement read in parts.

The statement concludes that Kachikwu’s allegations were baseless as due process was followed in the various activities bordering on awarding of contracts.

“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.”

Read the full statement here.