House reviews Diezani, NNPC contract

Diezani Alison-Madueke extended an NNPC deal without a formal contract – A former NNPC group director urged the National Assembly to review the current leadership structure of the corporation The former minister for petroleum, Diezani Alison-Madueke, is involved in another financial appropriation scandal as details have emerged on how she approved a $24 billion deal without a formal contract. The Punch reports that Austin Oniwon, a former group managing director of the Nigerian National Petroleum Corporation (NNPC) said on Tuesday, February 16, that there was no formal contract between the NNPC and trading companies that lifted $24bn worth of crude oil from the country between 2011 and 2014. Oniwon told the House of Representatives ad hoc committee on crude oil swaps headed by Zakari Mohammed that Alison-Madueke merely granted the extension of an earlier contract before he left office in 2012. He added however that “there was an approval for the extension by the minister; I believe the records are with the NNPC.”

It was reported that the NNPC in 2010 began taking 445,000 barrels of crude daily for refining to meet the country’s local demand of petroleum products but when the country’s refineries failed to run, the NNPC resorted to exchanging the crude for refined products through an arrangement with appointed crude trading firms. The one-year contract expired in 2011 but the then minister for petroleum granted an extension without the NNPC formally signing another contract on the new deal. It was reported that it was until 2014 before another contract was formalized. Michael Enyong, a lawmaker said: “These companies had lifted crude worth $24bn before the contract was signed in 2014 and backdated to look like it was signed in 2011 when the first one expired.” When asked why the expired contract went on till 2014, Oniwon argued that Madueke approved the extension. He said: “I am not a lawyer, but I didn’t need anybody’s approval to take crude to the refinery for refining if the refineries were running. “This crude had been paid for by the NNPC. If I needed to take the crude for exchange, I am not going to write the Federal Government. It is NNPC’s decision on what to do to 

It was reported that the NNPC in 2010 began taking 445,000 barrels of crude daily for refining to meet the country’s local demand of petroleum products but when the country’s refineries failed to run, the NNPC resorted to exchanging the crude for refined products through an arrangement with appointed crude trading firms. The one-year contract expired in 2011 but the then minister for petroleum granted an extension without the NNPC formally signing another contract on the new deal. It was reported that it was until 2014 before another contract was formalized. Michael Enyong, a lawmaker said: “These companies had lifted crude worth $24bn before the contract was signed in 2014 and backdated to look like it was signed in 2011 when the first one expired.” When asked why the expired contract went on till 2014, Oniwon argued that Madueke approved the extension. He said: “I am not a lawyer, but I didn’t need anybody’s approval to take crude to the refinery for refining if the refineries were running. “This crude had been paid for by the NNPC. If I needed to take the crude for exchange, I am not going to write the Federal Government. It is NNPC’s decision on what to do to 

guarantee regular supply of products in the country. “That was the whole essence of the swap arrangement; to ensure that we had adequate products, which we achieved successfully.” READ ALSO: Buhari probos Ministry of Interior “If there was supposed to be a higher approval, it was the minister who should seek the approval, not the NNPC,” Andrew Yakubu, who succeeded Oniwon, told the committee that he made efforts to review the swap deal by setting up a team of experts and that he sent a report to Alison-Madueke. “Among the issues we raised were the controversies generated by the swap arrangement, the need for contract valuation and how to improve on it to be more beneficial to our operations. “I forwarded a report to the minister in April 2014 and the document never came to me until my removal (as GMD) was announced by 9pm on August 1, 2014.” Yakubu advised the National Assembly to review the current set-up of the 

leadership of the NNPC. He said the existing situation whereby people could be removed at will would not allow the corporation to perform optimally. Many have been calling for the prosecution of the former petroleum minister, who was arrested but later released by London police. President Muhammadu Buhari has said that he is unable to prosecute Alison-Madueke and other petroleum workers over what he called lack of evidence.