I Met A Chaotic NNPC - Obaseki

Mr. Jackson Obaseki, a former Group Managing Director (GMD) of NNPC, on Thursday said that he met a chaotic allocation formula at the corporation on assumption of office in 1999.

Obaseki revealed this at the ongoing investigative hearing on operations and activities of NNPC and its subsidiaries, organised by the House of Representatives ad hoc committee on the activities of the NNPC and its subsidiaries.

He said that before he assumed office in 1999, there was an indiscriminate allocation of importation rights awarded to some Nigerians that would last up to 2016.

Obaseki described the development as unusual in the history of allocation of importation rights and as a result, he ordered the cancellation of the contracts.

“When I came in, I ordered the cancellation of all the allocations,’’ he said.

Alhaji Abubakar Yar’Adua, immediate past GMD of NNPC, said that there were no concise procedures and guidelines for the importation of petroleum products, while the managing director dealt directly with the petroleum minister.

He noted that due to the lack of funds and maintenance of the refineries, production capacity dropped drastically.

Yar’Adua stressed that during his tenure as the GMD, he refused any transfer of Local Purchase Order (LPO) from one company to the other.

Rep Halims Agoda, Co-chairman of the Committee, said under a Joint Venture arrangement, NNPC misappropriated 650 million dollars from the cash call fund by investing outside the purpose the fund was meant.

He also explained that the corporation withheld an accrued interest of 130 million dollars from the two years investment outside.

Agoda observed that 5.9 million tonnes of petroleum products was actually imported into the country while the government was made to pay for 7.3 million tonnes with 2.3 billion dollars, leaving the balance of 1.4 tonnes undisclosed.

According to him, the difference between the actual volume supplied and the figures reflected in the records was 551 million dollars.

“If we have to take our time to scrutinise the documents through the years, we would realise how much the government has lost in these transactions.”

Agoda also disclosed that in July 2005, NNPC under the guise of performance balance, paid 25.6 million dollars to Texaco that was no longer on the list of the Joint Venture Company (JVC) of NNPC.