NNPC Issues Reply in Contracts Scandal
The Nigerian National Petroleum Corporation (NNPC) denied it had broken the rules for reviewing contracts in a statement on its website on Monday.
The letter was a response to allegations by the country’s oil minister, Emmanuel Kachikwu, that about USD 24 billion worth of contracts had not been reviewed by the board of the NNPC.
“[T]he allegations were baseless and due process has been followed in the various activities,” NNPC’s statement concluded, after reviewing a number of contracts at the centre of the scandal.
“[I]t is established that apart from the AKK [Ajaokuta to Abuja-Kaduna-Kano] project and NPDC [Nigerian Petroleum Development Company] production service contracts, all the other transactions mentioned were not procurement contracts.
The NPDC production service contracts have undergone due process, while the AKK contract that requires FEC [Federal Executive Council] approval has not reached the stage of contract award.”