A Review of the Nigerian Energy Industry

NNPC contracts scandal: PENGASSAN calls for thorough investigations

*NNPC Towers, Central Business District, Garki, Abuja.

Michael James

11 October 2017, Sweetcrude, Lagos — The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for a proper and thorough investigations into the crisis surrounding the $25 billion contract and employment allegation in the Nigerian National Petroleum Corporation (NNPC).

The Association also vowed to resist any attempt by non-executive officials of the Nigerian National Petroleum Corporation (NNPC) to meddle with the affairs of the Corporation.

In a statement signed by the Group Secretary of the Group Executive Council (GEC) of PENGASSAN in NNPC, Comrade Sulaiman Sulaiman, said that the Association is in support of the President Muhammadu Buhari’s administration anti-corruption campaign.

He said in tandem with the anti-corruption campaign of the government, the Association urged a thorough investigation into the issue, adding: “We support the decision of the Senate to thoroughly investigate the weighty allegations in the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu against the NNPC Group Managing Director, Dr. Maikanti Baru on the awards of the $25billion contracts and new appointments in the national oil company, adding that Nigerians will be waiting to hear the outcome of these sensitive investigations.”

He warned that the Association will stop non-executive officials from using top management positions in the National Oil Company to settle cronies at the detriment of dedicated staff.

They noted that the recent re-organisation in the NNPC was in good faith and encouraged internal growth.

They stated, “We are convinced that the recent re-organization in NNPC is in good faith and in tandem with our call for allowing internal growth in the system through hard work and positive appraisals.

“We shall continue to reject and vehemently resist attempts in meddling into day-to-day running of the organization by non-executive officials of the Corporation. We will not, any longer allow our institution to be an avenue to settle friends and cohorts into Management positions of NNPC at the detriment of dedicated staff with all the requisite qualifications within the system.

“Problems will continue to occur as long as the Chairman of the Board will continue to meddle into day-to-day running of the organizations, which is a Management role. Any attempt to allow this to happen will spell doom for the country and create a window for abuse.”

The senior staff said that good practice in corporate governance requires absolute segregation of oversight role from management day-to-day role; asking “Why should a board chairman seek to meddle in internal organizational adjustment?”

They noted that the Board Chairman to focus on performance appraisal of the Board Committees and its members rather than wanting to dictate appointments or award contracts in NNPC.

According to the workers, contrary to claim in the said letter to the President, staffs are no longer afraid to talk or express their opinion, especially with the domestication of whistle blowing policy and re-constitution and launching of the Anti-Corruption Committee by the current GMD.

“In terms of workplace harmony, NNPC has enjoyed the best industrial atmosphere under the present Top Management of NNPC. So far there is zero record of industrial crisis or shutdown, which is the first of its kind in the history of struggle in oil and gas in Nigeria. Thanks to the efforts of the current GMD and the GED Corporate Services,” they said.

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