…Says no 650m dollar scam
Senator Magnus Ngei Abe has reacted to claims by an online media that the minister of petroleum, Chief Timipre Sylva and his cronies were planning to divert a six hundred and fifty million dollar contract to themselves.
Abe in a statement he personally signed said the story is false.
The statement reads:
We will not shy away from defending our national interest.
My attention has been drawn to a story by Sahara reporters titled : “Petroleum Minister cronies plot kangaroo NNPC report to divert 650 million dollar oil contracts to themselves.”
The said story is clearly designed to create the impression of a major scandal and arm twist the federal government in the matter concerning the recent attempt to revoke of some oil blocks from a foreign company, Addax petroleum.
To create the needed sensation all kinds of names including mine was dragged into the fray.
For the avoidance of doubt I recently headed a Presidential inter-ministerial committee made up of technocrats from several federal ministries and departments to advise the President on plight of an indigenous engineering and technology Kaztec Engineering limited.
The committee was set up by presidential directive conveyed by the chief of staff to the President. There is nothing in the committee assignment that involved the allocation of oil blocks.
Nigerians however need to know that Kaztec Engineering limited a local company was
was awarded contracts worth over 650million dollars by Addax petroleum to develop the oil fields operated by Addax petroleum.
In 2015 the Federal Government under President Buhari in keeping with its anti-corruption agenda accused Addax of tax atrocities which resulted in substantial losses to the federal government.
Addax was asked to pay, in response they declared a force majeure on their exploration activities and cancelled their investments in the oil fields.
The Nigerian company Kaztec, a company that has invested of 650million dollars in the project with Addax was forced to bear the brunt of the entire dispute, which was actually between Addax petroleum and the Nigerian government.
Over three thousand workers were laid off, equiptment, vessels, and a fabrication yard worth billions of Naira borrowed from Nigerian banks was laid waste.
Nigerians must look beyond the needless sensationalism and ask the had questions that need to be answered.
Who is deceiving the President?
Is it Addax the company that was accused of tax fraud, and abandoned its Nigerian investments for over 10years or the Department of Petroleum Resources that tried to hold them to account for the economic damages the were inflicting on the Nigerian oil economy? Withholding investments at a time when the nation is in dire need?.
For the avoidance of doubt, the Kaztec committee was not set up by Minister of Petroleum to award any oil block neither is the place of the NNPC to award or revoke oil mining licenses.
The committee report focused exclusively on measures and reliefs which the government can legally extend to the company to salvage the heartbreaking and tragic losses to an indigenous company.
It is unfortunate that Sahara reporters made no effort to reach me or verify whatever sensational lies it was fed.
There is absolutely no scam on oil blocks, or contracts involved in the Kaztec committee report.
Issues of revocation, allocation and management of oil blocks are exclusively the preserve of the Department of Petroleum
resources. In the light of the abandonment of the oil blocks, the lack of investment in the field, the colossal losses to the Nigerian economy by the actions of Addax.
DPR was right to recommend a revocation of the mining leases issued to Addax in the National interest. Those who have contrary interest can pursue their interest without destroying our nations economy
Those peddling lies through Sahara reporters are those trying to mislead the presidency, the 650million dollar contract referred to by Sahara reporters was a contract awarded to kaztec by Addax.
The Sahara reporters story is clearly a misrepresentation of the facts.
Nigeria should not be held hostage by any foreign company.
_Senator Magnus is a member of the Board of NNPC
