Preisdency denies awarding contracts worth $25bn


The Presidency on Sunday said no contracts worth 25 billion dollars were awarded by the Nigerian National Petroleum Corporation (NNPC) neither was 25 billion dollars missing in the corporation. This was contained in a statement issued on Sunday by the Senior Special Assistant to the Vice President on Media and Publicity, Mr Laolu Akande.

According to him, no contracts were procured by the NNPC based on the leaked memo of Petroleum Resources Minister of State, Ibe Kachukwu, even though such impressions have been maliciously created in the past few weeks.

Akande disclosed that a close look at each of the said projects indicated clearly that “these are not procurement contracts”. He said: “when I tweeted on Thursday morning, I had indicated that the Vice President, while acting as President approved Joint Venture Financing arrangements. “But for some curious reasons, a few media reports used that tweet to report that I said the then Acting President approved N640 billion worth of oil contracts.

“Such reporting is both false and misleading and therefore, ought to be completely ignored by all seekers of truth.” He said that what was more important was that none of the referenced projects and transactions revealed by the NNPC was actually a procurement contract. Also See: Buhari Allegedly Approved N640b Oil Contracts From His Sick Bed In London “Take both the Crude Term Contract and the Direct Sale, Direct Purchase (DSDP) agreements, for instance, these are not procurement contracts involving the expenditure of public funds,” he said.

“Both transactions are simply a shortlisting process, in which prospective off-takers of crude oil and suppliers of petroleum are selected under agreed terms, and in accordance with due process. It is therefore wrong and misleading to refer to them as though they’re contracts involving the expenditure of NNPC funds, or public funds of any sort. “As you now know, the Honorable Minister of Petroleum Resources himself has in fact clarified that he meant to focus on administrative and governance issues, not red-flag any fraud – because no fraud exists in this matter.

” NNPC Engages Tanker Drivers Akande also maintained that it was untrue and inaccurate to attach $10B and $5B values on both contracts, saying “attaching monetary values to these contracts is an arbitrary act that completely distorts understanding of the situation.”

“Whenever there is a monetary value on any consignment of crude oil lifted in this country by any firm, the proceeds go directly to the Federation Account and not to any company. In fact, the Buhari administration in the implementation of the Treasury Single Account (TSA) has closed down multiple NNPC accounts in order to promote transparency and probity.” The minister of state for petroleum resources, Ibe Kachikwu had accused Maikanti Baru, group managing director (GMD) of the NNPC, of awarding contracts worth $25 billion without due process.

– World Bank In a letter to President Muhammadu Buhari, Kachikwu listed some of the contracts as “crude term contracts valued at over $10 billion, DSDP contracts valued over $5 billion and AKK pipeline contract valued approximately $3billion.

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