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Monday, 16 October 2017

Kachikwu’s '$25 billion' contracts claim was fabricated - Osinbajo

Prof. Yemi Osinbajo has rebuffed claims made by Ibe Kachikwu, Minister of State for Petroleum, regarding alleged $25 billion contracts handed out by the group managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru; as he stated that the monies do not exist, Premium Times reports.

The vice president stated that it was simply a shortlisting process for crude oil lifting which was conducted by the NNPC.

 Osinbajo disclosed that this did not involve any financial transaction, and described Kachikwu's allegations as being 'wrong and misleading'.

In his leaked memo to President Muhammadu Buhari, Kachikwu had alleged that Mr Baru had awarded a series of contracts up to $25 billion, without approval from the NNPC board.


The minister gave a breakdown of the contracts as including $10 billion crude term contracts; $5 billion direct sales direct purchase (DSDP) contracts and $3 billion AKK pipeline contracts.

However, in a statement released by the vice president's spokesperson, Laolu Akande, Osinbajo stated: "When you look diligently at the referenced projects/transactions one by one, you will see, as NNPC has shown, that none of them was actually a procurement contract.

"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.

"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.

"There is no $25 billion missing."

Osinbajo also described as false, Kachikwu's claims of contracts in the $3 billion to $4 billion range, as concerning the NPDC.
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