Reps place NNPC, Contractor on status of inquiry over payment of $50m for survey of refineries

The House of Representatives on Thursday placed Nigerian National Petroleum Corporation (NNPC) and Maire Technimont on the status of inquiry over the payment of $50 million for a survey of the country’s refineries.

Chairman, Ad-hoc Committee probing the state of refineries in the country, Hon. Ganiyu Johnson issued the query during the cross-examination of presentations made by Technimont’s Vice President (Revamping), Davide Broginni; and Vice President sub-Sahara Africa region and managing director (Nigeria), Davide Pelizzola.

According to the Committee, NNPC awarded Port Harcourt Refining Company (PHRC) the sum of $1.5 billion; Warri Refining and Petrochemical Company Limited (WRPC) awarded the sum of $900 million; while Kaduna Refining and Petrochemical Company Limited (KRPC)) was awarded at $1.3 billion.

The lawmakers including Hon. Olanrewaju Edun while frowning at the non-transparent and series of doubtful payments allegedly made by NNPC, accused the Corporation of approving $50 million above the $20 million alluded to by the delegation who represented the NNPC Group Managing Director, Mele Kyari.

While noting that the reason given by the NNPC on why the nation’s refineries are not working is not satisfactory to the committee, Hon. Johnson said: “the $50 million contract for the rehabilitation of the refineries awarded by NNPC in 2019 is hereby queried and put on further inquiry. Technimont and NNPC should provide proof of payment and receipt to this committee.”

He added: “The House probe panel is determined to ascertain the actual cost of rehabilitation of the nation’s four refineries.”

The lawmakers also alleged that NNPC awarded for survey contract to Technimont in 2017 which was allegedly awarded in 2019 at the same amount.

While responding, Vice President sub-Sahara Africa region and managing director (Nigeria) Tecnimont, Davide Pelizzola disclosed that the contract was awarded in 2019 at $49 million by the Nigeria National Petroleum Corporation (NNPC) to Technimont.

Pelizzola who admitted that the approved $50 million is for the first phase of the refurbishment of Refineries across the country, argued that the company was given the contract without competitive bidding because the company built the refineries.

He also disclosed that the survey contract was awarded in the sum of $1.3 million.

But when asked about the company which built the refineries during cross-examination, the NNPC delegation disclosed that the Port Harcourt refinery which is currently under construction was built by a Japanese firm and not Maire Tecnimont as claimed.

On his part, the Executive Director Refining of the NNPC, Mr Philip Chukwu said that the first advance payment was 10 per cent of the amount adding that the second will be five per cent.

A member of the House ad-hoc committee, Hon Stanley Olajide (Oyo, APC) said that a lot of questions needed to be answered by the contractor on the State of the refineries.

Further investigations revealed that the fraud surrounding the award of the TAM of the Port Harcourt Refinery started when little-known Tecnimont, an Italian Company, coopted Daewoo as a partner to bid for the $1.5 billion contracts.

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