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Fresh $26 billion contract award crisis hits Baru’s NNPC



Fresh crisis is rocking the corruption plagued Nigerian National Petroleum Corporation (NNPC), as the Minister of State, Petroleum, Dr. Ibe Kachikwu, has accused the Group Managing Director, Mr. Maikanti Baru, of corruption and highhandedness.

Kachikwu in a letter dated August 30, 2017 – HMS/MPR/001/VOL.1/100and addressed to President Muhammadu Buhari, accused Baru of completely eroding all the reforms he introduced in the corporation during his time and running a one-man show in awarding contracts against due process.

” Mr President in over one year of Dr baru’s tenure, no contract has been run through the NNPC board, Kachikwu alleged in the letter.

” The legal and procedural requirement is that all contracts above $20m would need to be reviewed and approved by the board of NNPC.”

“This is despite my diplomatic encouragement to Dr Baru to do so to avoid wrongfully painting you as a President who does not allow due process to thrive in NNPC.” “Given the history of malpractices and the public perception of NNPC as having a history of non-transparency, the NNPC tenders board, NTB, cannot be the final clearance authority for contracts it enters into.”

” The following major contracts were never reviewed by or discussed with me or the NNPC board.”

1, The Crude Term Contracts valued at over $10billion, 2,The DSDP Contracts with over $5billion, 3,The Akk Pipeline Contract valued at $3billion, 4,various financing allocation funding contracts with the NOCs valued at $3billion and 5,various other NPDS production service contracts valued at between $3-4billion.

Kachikwu, alleged that the GMD has ran the corporation like a one man show. ” I learn of transactions only through publications in the media.”

” There are many more your excellency. In most of these activities the explanation of the GMD is that you are the minister of Petroleum and your approvals were obtained.”

” When I call for meetings, the GMD Baru chooses which meetings he wishes to attend and those he chooses to send subordinates, he sends those subordinates without courtesy of a call to explain his absence.”

“At inception I instituted a monthly Parastals review meeting with Head of Agencies and another with the oil senior management in all parastatals, the GMD objected to his senior staff coming to the joint senior management meetings.”

‘ He argued that this was overreaching his territory, I have tried to manage the bad perception created by GMD’s blatant insubordination and disrespectful attitude, I have worked hard to avoid being seen as petty and meddlesome, Kachikwu said.

“In order to convince your excellency to sideline me, I am sure I have been labelled as being, anti-north, corrupt and in collusion with militants.”


” I resumed work confronted by many publications of massive changes within the NNPC. Like the previous reorganizations 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 Minister of State Petroleum and Chairman NNPC Board.”

” I came to this job with the zeal to change the sector, it is in the spirit of service and absolute belief in your leadership and integrity that I have after one year of tolerating these disrespectful and humiliating conducts by the GMD decided to bring these to your attention.”