TheCable

The senate has resolved to set up an ad hoc committee to probe the allegations made by Ibe Kachikwu, minister of state for petroleum resources, against Maikanti Baru, group managing director of the Nigerian National Petroleum Corporation (NNPC).

In a petition to President Muhammadu Buhari, Kachikwu alleged that Baru was sidelining him and the NNPC board from important decisions affecting the corporation.

Kachikwu also accused Baru of insubordination and of awarding contracts without due process.

“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,” he wrote.

“Indeed, in anticipation of vacancies that would arise from retiring senior executives of NNPC, I wrote the GMD a letter requesting that we both have prior review of the proposed appointments.

“Not only did he not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation on board concurrence.”

On Wednesday, the senate while considering a motion on ‘allegations of corruption against NNPC trading: time to conduct a holistic investigation’, resolved to probe the allegations after Kabir Marafa drew the attention of the lawmakers to them.

Earlier, while moving the motion, Samuel Anyanwu, senator representing Imo east, said Baru allocated “almost all products to Duke Oil, this is in addition to its automatic inclusion in the lifting of crude oil, gas etc, which thus, made Duke Oil a money spinning outfit that is accountable only to NNPC”.

The senator said “Duke Oil as the sole importer of AGO has slowed down the growth of the country’s indigenous companies”.

“Since NNPC owns NNPC trading limited and the refineries, they also shortlist companies that get allocation of products, lifting of crude oil and importation of products thus, giving undue advantage to the in house company, even where it lacks the capacity and requisite requirements to do what it is doing today,” he said.

“The general lack of transparency and level playing field in favour of Duke Oil to lift products without payment as against its competitors in the sector. These have combined to make Duke Oil the highest money earner and at the same time, the highest money waster because of the massive corruption in the way and manner they transact business.”

He said Duke Oil lacked the credentials to trade internationally and its relationship with the NNPC has stifled the “growth of indigenous companies operating in the sector”.

Aliyu Wamakko, a senator representing Sokoto, is the chairman of the ad hoc committee charged with investigating the allegations.