Reps to probe alleged $260m illegal contracts by NAPIMS

The lower legislative chambers on Wednesday asked its committee on Petroleum (Upstream ) and Public Procurement to investigate alleged $260 million illegal contracts by National Petroleum Investment Management Services NAPIMS, a subsidiary of the Nigerian National Petroleum Corporation, NNPC.

The resolution of the House was sequel to the passage of a motion titled: “Need to investigate NAPIMS alleged illegal award of $260 million contracts” sponsored by Hon. Babatunde Gabriel Kolawole (Akoko South East/South West Federal Constituency, Ondo State).

While arguing the motion, the lawmaker said there is a need to curtail profligate use of the nation’s resources, as enshrined in the Constitution of the Federal Republic of Nigeria, particularly in the face of dwindling oil revenue.

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“There is the need to investigate the report of an alleged $260 million contract given by the National Petroleum Investment Management Services ( NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation, NNPC in fragrant violation of due process and without approval from both the NNPC’s board and the Corporation’s Group Executive Committee (GEC), as required.

“NAPIMS allegedly fraudulently granted approval for ESSO Exploration and Production Nigeria Limited, a subsidiary of ExxonMobil, to award four single source contracts for projects in Exxonmobil’s Usan Deepwater Project, at a total value of $260 million without any form of tendering process”

Kolawole said that NAPIMS had allegedly through three memos, dated October 13, 2014; February 10, 2015 and April 16, 2015, singlehandedly nominated four companies to execute the contracts.

The four single source contracts for projects in Exxonmobil’s Usan Deepwater Project, given at a total value of $260 million was alleged to be “without any form of tendering process.”

He further noted that the NNPC Management washed its hands off the contract in a recent advert, saying it never gave approval for the said contract as it “predates the current Management of the NNPC as well as the Management of the National Petroleum Investment Management Services, NAPIMS, the Corporate Service Unit of the Corporation.”

“This shallow excuse is not sufficient excuse to fritter away $260 million, at a time when the nation is seeking ways to fund the 2016 budget and to weed out unnecessary expenses from the annual appropriation,” the lawmaker said.”

He noted that the Chairman of the House Committee on Appropriation, Hon. Abdulmumin Jibrin, recently in an interview, lamented the huge sum of N1 trillion annual crude production cost ( of which this is part ) and the need to closely scrutinise it.

He therefore called on members to support the bid to curtail such profligate spending by probing the alleged illegality.

The motion was passed with overwhelming support when the Speaker of the House, Hon. Yakubu Dogara called for a vote.

The House joint committees on Petroleum (Upstream ) and Public Procurement were thereafter given a period of four weeks to investigate the matter and report back to the House.

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