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Recently, deep probing by industry
watchers as well as intelligence and
surveillance reports on
the contract execution for the
re-branding of affiliated stations into NNPC
RETAIL LTD, found the process to be
loaded
with a lot of negligence with respect to
issues of Due
Process. The
system fell short of the acceptable
standards contained
in the Bureau of Public Procurement (BPP)
Act of 2007.And this shocking discovery is
making stakeholders call for an end to the
palpably fraudulent steps so far taken on
the matter
The first batch of 117 affiliate stations
contract for the re-branding of NNPC RETAIL
LTD revealed that a contract sum of five
hundred million Naira (N500, 000.00m) had
already been disbursed for the contract. The
contract selection and approval process was
hurriedly executed without recourse to Due
Process and compliance with the Public
Procurement Act, before the award was given
out.
Here
are the findings on the contract award:
The contract scoping process for the
re-branding of affiliate stations was done
by a single contract: IPAYA, alleged to be a
crony of the Managing Director, NNPC Retail
Ltd., Dr. Richard Ajiboye, without the
knowledge of the Engineering Department of
NNPC Retail Ltd.
Messrs: IPAYA was said to have carried out
the job scoping for the contract of the
re-branding works, which contradicts
contract scoping and job assessment
evaluation in the contract cloning,
selection and approval process.
The contract sum value was five hundred
million naira (N500m) for the first batch of
re-branding works for 117 affiliate
stations, yet no advertisement was made for
publicity as envisaged by the Bureau of
Public for Procurement, for transparency.
When the scoping was concluded by Messrs.
IPAYA, five other contractors: Messrs: FRESH
NETWORKS, AMRON, PESTER BRANDS, BOLD
CONCEPT, & DAN FULANI were called in to have
a share of the job, just to give it a
semblance of credibility and create the
impression that the contractors’ selection
process was transparent. There was said to
be no call for Tender, both technical and
commercial, no bid analysis, and evaluation
was said
to have been done to make room for ranking,
while no contractor short listing was
done, no internal market survey either, to
get an in-house estimate for the control of
contract sum. Yet the contract was awarded.
The contractors were said not to have been
subjected to competitive bidding, the
expertise of the contractors not benchmarked
against any approved standard prior to award
according to the Audit Manager’s report in
NNPC retail. There was said to have been no
legal vetting of the contract process before
contract was approved, hence a credibility
issue was at play when the contract was
awarded for execution.
Internal mechanism was said not to have been
properly exhausted in the arrival at
contract sum, as the contract was reported
to have been given free hands to scope,
compute price and package of the entire
contract, without the involvement of the
Engineering Unit of NNPC RETAIL LTD.
Our source states that Contract award was
done by the MD NNPC RETAIL LTD “without the
involvement of the Manager in charge of
control of the job quality, hence the output
from the completed jobs is nothing to write
home about.”
The
other batch of the remaining affiliate
station (about 350), we gathered will soon
be given out for re-branding through the
same process, which
lacks
transparency.
The
Petitioners against the scam are therefore
requesting that:
Top management should probe the contract
award for the re-branding of the first batch
of 117 affiliate stations to ascertain if
all contract selection and processing
requirement were met, asking:
“Why
was the scoping of a contract for the
re-branding of 117 affiliate station
issued
to a proposed contractor, Messr: IPAYA who
was a crony of the MD, NNPC Retail, Dr.
Richard Ajiboye, a practice which was
against the Bureau of Public Procurement Act
2007?”
“How was the contract sum arrived at when
there was no proper internal control
mechanism in place from the Engineering Unit
of NNPC Retail Ltd., who approved the sum
for the contract value?”
“Why was Audit Department of NNPC Retail
Ltd. not informed of the contract selection
process leading to award, if it met Due
Process and Bureau of Public Procurement?,
as the Audit Manager of NNPC Retail
Ltd. should be able to explain?”
“Why was the contract not advertised in the
national dailies to give it much publicity
for competitive bidding to be promoted and
for transparency?”
“If a contract sum of five hundred million naira did not go
under the scrutiny of the Legal Department
of NNPC, how and why was it awarded? Who
approved the budget and at what forum?”
Aggrieved stakeholders are demanding that
The Bureau of Public Procurement should be
invited to immediately investigate and
determine if the re-branding contract
selection and approval process met the
expected standard as contained in the BPP
Act of 200, and that top Management of NNPC
should set up an investigative team of
engineers in conjunction with NNPC to carry
out a confirmation exercise.
Furthermore,
the following have been revealed:
1.
That Alhaji Abba Bukar had never worked in
any Depot loading facilicity as a Depot
Representative, so why should MD NNPC Retail
Ltd. prefer him for the herculean task of
loading over 400 affiliate stations across
the network without any prior experience?
2. That the decision to send him to Apapa
Private Loading Depot was taken right in the
retreat venue held 6th February, 2010, when
it was very clear that he had not worked in
any depot or at any loading operations. This
decision was the input from his MD NNPC
Retail Ltd. mentor, Alhaji Aminu Baba-Kusa
who was the Group Executive Director (GED)
Commercial & Investment.
3. That in the NNPC
Retail Ltd. organogramme from the Human
Resources Department, there is no job title
as ‘Co-coordinator, Depot Operations,’ which
was the letter issued to Alhaji Abba Bukar,
when he was posted to head the loading
operations at the Apapa private Depot
- why was this so?
4. That the MD NNPC
Retail Ltd., Dr. Richard Ajiboye,
categorically, informed the Regional Manager
who was the in charge of Lagos operations
(Mr. Febohe) not to interfere in the Private
Depot Operations at Apapa, which was
supposed to be under his (Ajiboye’s) control
and supervision. This explains, from
findings of our sources, why the title
Coordinator Loading Operations was cleverly
used in the letter given to
letter issued
to Alhaji Abba Bukar, beside the significant
fact that Human Resources Department was not
copied.
5. That at the
request of Alhaji Abba Bukar, he single
handedly employed ten (10) support staff ers
to assist in the loading operations, with
the approval of
MD.NNPC
RETAIL LTD, who approved the purchase of
three (3) motor cycles for
Abba
Bukar as logistics for the operations,
against
the corporate policy of NNPC.
6. That
Abba Bukar had never operated a
computer prior to his posting to Apapa
loading operations, hence he had no
applicable knowledge of the use of Microsoft
suites in the preparation of report of
loading from the Depot facility, so why
should a computer operations-deficient
personnel be asked to handle such an onerous
task of computing loading operations to
about 400 affiliate stations in the NNPC
RETAIL network if there was no intention to
defraud the NNPC of
substantial
sums of money?
7. That for the
period he functioned as the Regional Manager
Western Operations, Mr. Febohe was prevented
from overseeing the activities of the
loading operations at the Apapa loading
depot, and that Dr. Richard Ajiboye even
threatened to issue him a query if he finds
that he (Febohe) should go to Apapa to
supervise the operations, since Abba Bukar
was supposed to report to him. Instead, the
MD asked him (Abba Bukar) to report to him
(MD) directly so that there will be no
leakage in the strategic alliance between
the MD and Bukar over the sharing of
proceeds from products loaded without proper
documentation.
8. That there is
also strong evidence confirming that MD NNPC
RETAIL LTD. intermittently visited Lagos (Apapa
loading depot) without the knowledge of the
Regional Manager, Mr. Febohe and that on
each occasion, Bukar would be seen
communicating with the MD at isolated
locations from the scene of the support
staff and the dominant issue discussed was
money transfer from their deals.
9. That the
MD NNPC RETAIL LTD has successfully wrongly
removed those who are experienced in
tracking of the operations from position and
has surrounded himself with mediocre
personnel who
do not understand the detailed operations of
depot operations and product distribution
and tracking from depot to stations, hence
the collapse of the system.
10. That Abba Bukar from intelligence
gathered by our source collects N30, 000: 00
from truck owners before berthing and
loading. In some cases, the truck numbers
and destinations are not entered into the
loading manifest and as such the details
would not be captured when the loading
invoice is to be reconciled with PPMC – a
deliberate
act and incompetence on the part of Bukar).
The big question, our sources claim, is “why
would he be asked to take up such
assignment”?
11. That the accord between
Abba
Bukar and the MD NNPC RETAIL LTD started
when Bukar
took
the MD to meet
Chief Olusegun Obasanjo in Abeokuta
as well as the governor of Ogun state ,
Otunba
Gbenga Daniel, so that he would be retained
in Retail as the MD in spite of accusations
of incompetence, and
12. That “why was it that all 500 missing
loaded trucks are
only
from the Apapa private Loading Depot
Operations under the Coordination
of
Abba Bukar, given that there is no report of
missing trucks from Warri, Benin, Kaduna or
Mosimi depots?” This trend, our sources
argue, “points to a business collaboration
between Alhaji Abba Bukar and the MD NNPC
RETAIL LTD.
Our
sources and stakeholders in the sector are
demanding that the following steps be taken:
a.)
That NNPC top management make a detailed
inquiry to unearth the root cause of the
missing loaded trucks all from same source (Apapa
Private Depot loading operation);
b.) That top management should question the
MD NNPC RETAIL LTD, Dr. Richard Ajiboye on
how he got that nomenclature, Coordinator
Private Depot Loading, Apapa, absent from
the organogram?
c.) That
Abba Bukar had no depot loading
experience before he was sent o handle such
an onerous task as loading products to over
400 stations at the expense of the interest
of NNPC, so why was he sent even when such
fact was known to the MD?
d.)
They ask, “Where in the condition of service
of NNPC is it stated that motor-cycle would
be bought for logistic operations in a
loading depot?
e.)
Why did the MD, NNPC RETAIL LTD restrain
Febohe,
the Regional Manager Western Operations from
overseeing the activities of Abba Bukar at
the loading operations at Apapa when it was
under his domain if there were no
collaboration between him and Bukar to
defraud the corporation? They suggest that
Mr. Febohe could be contacted for more
details on:
080052012592/08033166405/08077091220
f.) They argue that Depot Representatives
such as Mr. Tari Omonibo, Mr. Ibrahim Yinusa
who had experience in depot operations were
not sent to cover the operations at Apapa by
the MD, rather it was Abba Bukar, who was
asked to leave Abeokuta mega station from
the venue of a retreat at NNPC Towers 6th
February, 2010 to take up the assignment
that he had no knowledge about:
why?
g.) That Abba Bukar’s persistent complaints
to the MD, NNPC RETAIL LTD, of trespass on
his operations at Apapa by the Regional
Manager Western Operations, Mr. Febohe,
resulted in the redeployment to Yenegoa mega
station of Febohe, so that
Bukar
could have a free hand.
h.) That when it was clear that Bukar lacked
the experience to handle a task such as the
one at Apapa loading depot, Mr. Yinusa
Ibrahim was asked to temporarily stabilize
the operations to clean up the mess, but he
bluntly told the MD that he “did not need to
work with any staff, that he was in charge
and requested that Ibrahim Yinusa should be
called back, and the MD granted the request
- why?”
i) That Bukar is still getting full pay
in-lieu of hotel accommodation at the
current category (A) rate of N19,
000.00/night,
while
other colleagues deployed to the mega
stations are paid 1/3 of their monthly
in-lieu of accommodation benefits. His
contemporaries ten (10) senior career
officers)
who were redeployed to Abuja to cover duties
at the Head Office since February 2010 till
date have not been paid any in-lieu of hotel
accommodation benefits, our sources
confirmed and ask: “why the double standard?
Is it not the same condition of
service NNPC operates?”
j.) Our sources observe that a support
staff, Mr. Matthias Peter who had detailed
information computed from the system on the
missing loaded trucks and the identified
causes of the irregularities that may have
resulted in such operations, was openly
rebuked by the MD, NNPC RETAIL LTD and
threatened with dismissal, and that after
much appeal, he (Peter) was redeployed to
the Audit section of Retail. He has been a
very useful asset to the Manager Audit in
information computing about the missing
loaded truck, our sources say and recommend
that top management should invite him for
more details.
k.) They recall that when Alhaji Ahmed Gambo
was the Manager Operations in charge of
tracking and distribution of loaded products
to the various stations,
no
single truck that
got
missing; so they ask: “why did the MD Retail
remove Ahmed
Gambo from the tracking and distribution of
loaded products to stations? Finally, they
query,
l.) Why did Alhaji Abba Bukar
single-handedly undertake the renovation of
the house of the father of MD, NNPC RETAIL
LTD at Abeokuta at a contract sum above N20m
if there was no collaboration between him
and the MD?
The
other questions
on the lips of stakeholders and our
sources are : how a staff who could not
account for the whereabouts of 500 loaded
missing trucks belonging to his employer is
still being allowed to remain in office by
the MD, NNPC RETAIL LTD without any query,
no panel set up for inquiry and no
investigation is being done to get the truth
about his activities?
They believe that the truth will be
established if all these options are fully
explored in detail. As far as they are
concerned, the dismissal of the support
staff at Apapa Private Loading Depot by the
MD was intended to give a false impression
to top management that they were responsible
for the crime. This, they argue, “is not
correct; there is collaboration; the MD
should be asked to step aside for proper
investigation and top management should
declare a state of emergency in NNPC RETAIL
LTD now, to sanitize the system so that the
labour expended in setting up the retail arm
of NNPC should not be in vain.
Comments:
JERRY :The letters of
your stories are too small and difficult to
read on blackberry and other hand held
devices. I think you need to redesign your
web page to address this.You can take cue
from African Examiner online. Tanx
Mohammed Bougei Attah:This
is an exccellent piece, Jim. I congratulate
you for this bold step and assure you that
as procurement priofessionals, we will look
into this saga further
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