There are rules of engagement and disengagement in the public service and corporations, which were strictly adhered to…
By Chioma Obinagwam
Amid allegations of misappropriation of funds and controversial disengagement of two critical executives of Nigeria’s dynamic global energy company, Nigeria National Petroleum Company Limited (NNPC Limited), GMD, Mallam Mele Kyari and GED F&A Mr. Umar Ajiya, the company has debunked the allegations and explained why.
Sahara Reporters allegations
Sahara Reporters, an online media which encourages citizen journalism, alleged that the reason why Kyari Ajiya traveled to Saudi Arabia was not to perform lesser hajj but to lobby for positions from Nigeria’s President Muhammadu Buhari and incoming president elect, Bola Tinubu for fear if being sacked.
The circular recognises a distinction between a tenured appointment to serve as Chief Executive of a government-owned company, as distinct from a career office
It also purported that the two paid themselves humongous gratuities that ran into billions, while still in service.
Other allegations include, loss of over $2.4 Billion in Revenue from Illegal Sale of 48 Million Barrels of Crude Oil Export in 2015, including Crude Oil Exports from 2014 till date.
Position of the law
Debunking the allegations of Sahara Reporters, NNPC Limited in a statement sighted by Confiance News on Monday showed that Kyari and Ajiya resigned in line with the provisions Petroleum Industry Act— section 59(3) of the PIA 2021.
“Specifically, section 59(3) of the PIA 2021 has clearly stipulated the conditions to be considered in appointing the CEO and CFO of NNPC Limited without recourse to previous employment ranks in the Corporation. The previous rank of GMD or GED F&A was therefore not a consideration in the appointment of the CEO or CFO of NNPC Limited,” it disclosed in the statement.
It also denied paying the duo gratuities running into billions as alleged by the online media.
Confiance News also gathered that other provisions of Section 59 of the Act stipulates that the composition of the NNPC Limited board shall be determined in accordance with the provisions of the Companies and Allied Matters Act and its Articles of Association.
The Act also provides that employees of NNPC shall be deemed to be employees of NNPC Limited on terms and conditions not less favorable than those enjoyed prior to the transfer of service and shall be deemed to be service for employment-related entitlements as specified under any applicable law upon the incorporation of NNPC Limited.
Reacting, Chief Corporate Communications Officer of NNPC Limited, Garba Deen Muhammad explained,”The Circular issued by the Head of the Civil Service of the Federation, dated 27 July 2009, has explicitly stated that appointments as Chief Executives of Government-Owned Companies are “tenured appointments”, and in respect of such tenured appointments, career officers who wish to take up such appointments shall retire from service, in order to run their tenure uninterrupted. The circular recognises a distinction between a tenured appointment to serve as Chief Executive of a government-owned company, as distinct from a career office.
“Public service rules require termination of any fixed career appointment to take up a tenured role,” Muhammad clarified
Who is Mele Kyari?
Mele Kyari was born on 8 January 8, 1965. He is a Nigerian geologist, crude oil marketer and first Group Chief executive officer (GCEO) of the NNPC limited.
Before this appointment, Kyari was the Group General Manager, Crude Oil Marketing Division of the NNPC and the Nigerian National Representative at the Organization of Petroleum Exporting Countries (OPEC) since 2018.
Who is Umar Ajiya?
Umar Ajiya holds a B.Sc Accounting from Ahmadu Bello University Zaria, Nigeria in 1987 and MBA from the Lagos State University, Nigeria in 1998.
He joined Nigeria LNG Limited (NLNG) in 1991 as pioneer staff and later joined the service of NNPC as General Manager Commercial with the LNG Division under the Gas & Power Directorate of NNPC.
In 2019, Ajiya was appointed the Group Executive Director (GED) Finance and Accounts— the Chief Financial Officer of NNPC.
What you need to know about NNPC Limited
NNPC Limited is a for profit oil company in Nigeria. Formerly a government-owned corporation known as Nigeria National Petroleum Corporation, it was transformed from a corporation to a limited liability company in July 2022 as prescribed by the PIA. According to Wikipedia, a free online encyclopedia, NNPC Limited is the only entity licensed to operate in the country’s petroleum industry.
What next?
NNPC Limited is not taking the allegations and misinformation lightly. It has vowed to challenge Sahara Reporters in court.
“The Group CEO and the CFO have demonstrated patriotism by ending their career appointments with the Corporation to serve the nation on five years tenured appointment in NNPC Limited.
“The general public is therefore advised to disregard the spurious and malicious publications while the company will take necessary legal steps to seek redress,” NNPC Limited advised.
What you need to know about NNPC Limited
NNPC Limited is a for profit oil company in Nigeria. Formerly a government-owned corporation known as Nigeria National Petroleum Corporation, it was transformed from a corporation to a limited liability company in July 2022 as prescribed by the PIA. According to Wikipedia, a free online encyclopedia, NNPC Limited is the only entity licensed to operate in the country’s petroleum industry.
