May 31, 2010
An anti-corruption group has petitioned the Economic and Financial Crimes Commission (EFCC) over about one billion dollar contracts by the Nigerian National Petroleum Corporation(NNPC) to a little known Lebanese firm, Zakhem, for building pipelines in different parts of the country.
An anti-corruption group has petitioned the Economic and Financial Crimes Commission (EFCC) over about one billion dollar contracts by the Nigerian National Petroleum Corporation(NNPC) to a little known Lebanese firm, Zakhem, for building pipelines in different parts of the country.
In a letter to the EFFCC asking it to investigate the contracts awarded on behalf of Nigeria Gas Company, an NNPC subsidiary, the Movement for Integrity In Petroleum Business (MIPB) noted that all the controversial contracts were awarded within only two years when a “particular individual, who is now a top official of the Goodluck Jonathan government, was the NGC chief executive”.
The contentious contracts were given out between 2006 and 2008. In 2008, for instance, Zakhem was awarded both the first and second phases of the Escravos-Lagos Pipeline Expansion for $588m, which have allegedly been reviewed upwards, even though the company did not meet the deadline for any of the jobs it got in 2006 and 2007.
Arguing that Zakhem’s capacity to do the jobs is suspect, the anti-corruption organization claimed that the Lebanese firm does not have a workshop nor considerable full-time employees “because most of its workers are part-time who are paid pittance.”
The group also asked the EFCC to verify serious allegations in the petroleum industry that the wife of the NGC chief executive when the controversial contracts were awarded is “a silent or sleeping director of Zakhem.
Quoting a rrecent report by Saharareporters, the movement said: “In fact, this lady is the face of Zakhem in NNPC and government circles, as she is the person who does all the negotiations before Albert Zakhem, head of Zakhem operations in Nigeria, steps in to sign the sweetheart deals”.
The MIPB said, “We have credible reports to the effect that this lady, who is a major operator in the downstream sector, was instrumental to the payment of about $50m to Zakhem by the former NNPC managing director, Dr Mohammed Barkindo, on the day he was relieved of his post”.
The petroleum industry watchdog criticized the NNPC leadership for giving heavy contracts to a company “already discredited in Ghana and Liberia, among other African countries, for what a British diplomat, Craig Murray, last February called astonishing corruption to which only stupid and unintelligent people all”.
It observed that Zakhem did “practically nothing three years after it was paid a colossal $80m for the mere installation of power turbines purchased for only $70m for the Volta River Authority, which caused a national uproar in Ghana, while the contract for the refurbishment of oil storage tanks of the Liberian Petroleum Refinery Corporation at an incredible $24.8m,double of the highest amount quoted by other companies, led to the dismissal of its company’s ceo, Harry Greaves, last year, by President Ellen Johnson-Sirleaf, despite their very close relationship”.
In a letter to the EFFCC asking it to investigate the contracts awarded on behalf of Nigeria Gas Company, an NNPC subsidiary, the Movement for Integrity In Petroleum Business (MIPB) noted that all the controversial contracts were awarded within only two years when a “particular individual, who is now a top official of the Goodluck Jonathan government, was the NGC chief executive”.
The contentious contracts were given out between 2006 and 2008. In 2008, for instance, Zakhem was awarded both the first and second phases of the Escravos-Lagos Pipeline Expansion for $588m, which have allegedly been reviewed upwards, even though the company did not meet the deadline for any of the jobs it got in 2006 and 2007.
Arguing that Zakhem’s capacity to do the jobs is suspect, the anti-corruption organization claimed that the Lebanese firm does not have a workshop nor considerable full-time employees “because most of its workers are part-time who are paid pittance.”
The group also asked the EFCC to verify serious allegations in the petroleum industry that the wife of the NGC chief executive when the controversial contracts were awarded is “a silent or sleeping director of Zakhem.
Quoting a rrecent report by Saharareporters, the movement said: “In fact, this lady is the face of Zakhem in NNPC and government circles, as she is the person who does all the negotiations before Albert Zakhem, head of Zakhem operations in Nigeria, steps in to sign the sweetheart deals”.
The MIPB said, “We have credible reports to the effect that this lady, who is a major operator in the downstream sector, was instrumental to the payment of about $50m to Zakhem by the former NNPC managing director, Dr Mohammed Barkindo, on the day he was relieved of his post”.
The petroleum industry watchdog criticized the NNPC leadership for giving heavy contracts to a company “already discredited in Ghana and Liberia, among other African countries, for what a British diplomat, Craig Murray, last February called astonishing corruption to which only stupid and unintelligent people all”.
It observed that Zakhem did “practically nothing three years after it was paid a colossal $80m for the mere installation of power turbines purchased for only $70m for the Volta River Authority, which caused a national uproar in Ghana, while the contract for the refurbishment of oil storage tanks of the Liberian Petroleum Refinery Corporation at an incredible $24.8m,double of the highest amount quoted by other companies, led to the dismissal of its company’s ceo, Harry Greaves, last year, by President Ellen Johnson-Sirleaf, despite their very close relationship”.
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