By Abimbola Ogunnaike
The House of Representatives Committee on Public Petitions has summoned the managing director and senior management staff of the Nigeria AGIP Oil Company over a petition alleging the diversion of $72 million.
The petition was raised against AGIP by a service company, De Coon Service Limited.
Joined in the petition are the Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari; Ali Zara; Ismailia Mohammed; and ex-executive Secretary of the Nigeria Content Development and Monitoring Board, Simbi Wabote.
In the petition, De Coon Service Limited alleged that AGIP, in collaboration with the above-named individuals, fraudulently withheld and diverted the sum of over $72 million belonging to it.
As a result of this, the company sought the House Committee’s inquest into the matter.
According to the letter of summons/hearing notice issued on 10 June , 2024, and signed by the committee Chairman, the parties involved are to appear before the committee on Thursday, 20 June, 2024 with a soft copy and 10 hard copies of their brief on the matter.
Part of the letter read in part, “Whereas the above named petition is now pending before this committee and the particulars aforesaid are hereby attached.
“And whereas the petition has been assigned to be heard by the committee for determination, you are hereby required to note Section 88 and 89(C) of the constitution of the Federal Republic of Nigeria (as amended) and appear in person before this committee on Thursday, June 20, 2024, at 2.00 pm or so soon thereafter as the committee shall direct.”
Those specifically listed for response in the matter are the NAOC Managing Director, Division Manager (Strategic Procurement), one and four senior managers, as well as two retired staff of the company.
Also invited for response is the Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited, six others, as well as two retired staff of the national oil company.
The Group Chief Executive Officer of OANDO Limited and one other management staff of the company were also summoned.
The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission and retired staff of the commission were asked to appear before the committee.
Also, the Managing Director of TOTAL E&P, the former Executive Secretary, Nigeria Content Development and Monitoring Board, as well as the Minister of Petroleum Resources and the Permanent Secretary of the petroleum ministry were invited to give responses on the matter.
The letter further warned that any of the parties who fail to attend the hearing may bear the risk of having the matter determined in his/her absence.
The petition
In the petition dated 24 April, 2024, the Executive Director, CSJET, Joshua Abah, explained that the case involved the alleged diversion of funds in the sum of $72m by Nigerian Agip Oil Company Limited and NNPC officials.
Speaking on the reasons for the petition, he said, “De Coon Services Limited executed the Caterpillar General Maintenance Contract with NAOC that included routine operations and maintenance, provision of spare parts, and overhauls of all their dedicated production gas/diesel generators – a stop-gap contract which started in 2010 and ended in 2018. However, after the said tenure of the stop-gap contract, NAOC owed DSL over $22m, which they refused to redeem, irrespective of the fact that their JV partners (NNPC) had paid cash calls relating to this contract to NAOC. Succinctly put, NAOC converted the cash calls to themselves in total breach and defiance of the agreement to pay DSL upon conclusion of the contract and receipt of the cash calls from its Joint Venture partners.”
The petitioners further said, “DSL also won the replacement contract for the same contract in 2014, but NAOC delayed the award until 2018, hence the reason for ending the stop-gap contract in 2018 and commencing the replacement contract forthwith. Although NAOC owed DSL over $22m by this time, NAOC moved to commence the replacement contract. DSL objected and demanded that a reconciliation meeting be held to settle the outstanding bills or at least put in place a mechanism for paying these debts, but NAOC refused. DSL reported this situation to NCDMB and NUIMS (NAPIMS), while NCDMB commenced an investigation on this.”
“The NUIMS (NAPIMS) officers responsible at the time connived with NAOC to criminally commence the replacement contract without doing the needful. DSL has all the evidence to prove this claim. Notwithstanding all these financial irregularities, NAOC instituted a tender for contracts for the provision of gas generators at Samabiri Flow Station and the provision of three gas generators at Brass Terminal. However, NAOC rigged the tender processes by awarding the same to RCE Overseas Ltd, which was not the lowest bidder, in clear violation of the PPA 2007.
“The total amount now is above $70M as DSL rental equipment is still with NAOC and their daily rates are still counting to date. To allow DSL to continue their work as the contract is a NIPEX contract and as such DSL can only be replaced with a winner of a Nipex conducted replacement tender and in this case, there is none yet so the DSL contract should continue unless the services are no longer required in line with the GRC’s recommendation.”
The petitioners, therefore, urged the federal lawmakers to implement the recommendations of the NNPC’s GRC, NAPIMS & NCDMB reports as regards the matter.
They also urged the lawmakers to direct NAOC to pay all debts owed to DSL.
This, they said, could be in instalments and as shall be agreed by all stakeholders.
Source: The Punch Online
