Calls for the probe of the former Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL) continued to gain ground on Monday as a group of lawyers submitted a petition to the Minister of Finance, demanding the setting up of a judicial commission of inquiry to investigate his tenure at the national oil company.
The lawyers, under the aegis of the Guardians of Democracy And Rule Of Law, specifically demanded an investigation into the $4 billion Kyari reportedly spent on refineries repairs.
They alleged that Kyari's leadership was marked by monumental corruption, tax evasion, abuse of office and misappropriation of public funds.
Led by Barrister Benjamin Theophilus, the lawyers claimed that the amount spent on refineries repairs was inflated, citing a proposal by a consortium of private sector firms to repair the three refineries for about $1 billion.
The petition highlighted several areas of concern, including alleged fraudulent allocation of crude oil proceeds, misappropriation of funds in the AKK Gas Pipeline Project, fuel subsidy fraud, and value review for NNPCL's crude-backed loans.
“Mele Kyari is alleged to have collaborated with certain consultants and contractors involved in the refineries rehabilitation projects to conceal the actual cost of the contracts and evade taxes due to the Federal Government.
“Seven years ago, there was a proposal by a consortium of private sector firms to repair the 3 refineries, with a total capacity of 445 kbpd (thousand barrels per day) for about $1 billion.
“NNPCL under Mele Kyari has expended $1.5 billion on the Port Harcourt Refinery, $1.5 billion on the Warri Refinery and $1 billion on the Kaduna Refinery bringing the total of what Kyari spent on the refineries to more than $4 billion as opposed to the $1 billion that the consortium has requested for all the refineries.
“Even after expending these inflated sums, the refineries are unable to produce gasoline without using large quantities of chemicals from Indorama. This is a monumental project cost inflation as about $500 million is sufficient to build a brand new simple 600 kbpd refinery that will operate at a better efficiency.
“There is credible information that crude oil allocations were diverted, and financial transactions were carried out under the guise of ‘pipeline security’ at a suspicious rate of 80,000 barrels per day, with no transparent process or accountability mechanism.
“The AKK Pipeline Project, initially valued at $5 billion has been riddled with irregularities in the award and execution of contracts. Despite several budgetary provisions and foreign financing arrangements, there is little physical progress or transparency in fund utilization.
“There have been repeated allegations of fraud tied to the payment of fuel subsidy. It is instructive to note that while the rest of the world witnessed a decline in fuel consumption in 2020 due to COVID, NNPCL increased its imports of petroleum products during the same period.
“Under Mele Kyari, NNPCL took various crude-backed loans which hit $21.565 billion since 2019. Aside from mortgaging future production, the structure of these loans disadvantage Nigeria as upside from trading Nigeria’s crude in the international market was ceded to traders,” parts of the petition read.
Guardians of Democracy And Rule Of Law insisted on a thorough investigation into Kyari's tenure and the recovery of public funds if found to have been misappropriated.
The lawyers also called for collaboration with the Federal Inland Revenue Service (FIRS) to probe suspected tax evasion and fraudulent declarations.
They stressed that the demand for a Judicial Commission of Inquiry into the affairs of the NNPCL in the last five years is non-negotiable.
According to the group, the proposed commission should be made up of Nigerians of impeccable character, led by a former justice of the Supreme Court.
The petition was submitted to an official of the Ministry of Finance, who received the copies on behalf of the minister.
