In the letter to the president, which sources informed THISDAY was just a tip of the iceberg, the minister accused the NNPC boss of labelling him as “corrupt”, “anti-north,” and also being “in collusion with militants”, in order to convince the president on the need to sideline him in the decision-making process in the state-run oil firm.
Kachikwu alleged that Baru awarded about billion major contracts without his input or review by the NNPC board.
The question is why is it that other parastatals which I supervise as Minister of State or chair their boards are able to go through these contractual and mandatory governance processes and yet NNPC is exempt from these?
“I know that this bravado management style runs contrary to the cleansing operations you engaged me to carry out at the inception of your administration.
In the letter dated August 30, 2017, Kachikwu alleged that he read about the recent massive changes at NNPC on the pages of the newspapers, as Baru never discussed the changes with him and members of the board of the corporation.
Kachikwu informed Buhari that even though the appointments of other heads of parastatals in the Ministry of Petroleum were made without his input, he has maintained a cordial and respectful relationship with all of them.Kachikwu added that Baru did not also consult the Board Services Committee, whose function it is to review potential appointments and terminations of senior staff prior to implementation.The minister also alleged that Baru had sidelined the NNPC Board in the awards of contracts.“Board members have singularly and collectively raised these issues to no avail,” Kachikwu explained.
The minister listed major contracts awarded by Baru without the input of NNPC board to include billion crude term contracts; billion direct sales direct purchase (DSDP) contracts; billion AKK pipeline contract; financing allocation funding contracts worth billion; and NPDC production service contracts valued at - billion. In most of these activities, the explanation of the GMD is that you are the Minister of Petroleum and your approvals were obtained.
The relationship, THISDAY had exclusively reported last year, took a turn for the worse when Kachikwu reorganised NNPC in March 2016 and created five core divisions and 20 Autonomous Business units.