The Nigerian Petroleum development Company NPDC has been dragged to the floor of the Nigerian House of Representatives which is the lower arm of the national assembly of the nation. The company is accused of several wrongdoings including large-scale corruption, nepotism, fraud and other charges which prompted the House to adopt a motion calling for an investigation into its affairs.
Firing the salvo on the floor of the house of representatives, Rep Ahmed Abu (Niger-APC) stated that several allegations of corruption and unethical practices were hindering the NPDC from accomplishing his set goals and objectives as a foremost subsidiary of the NNPC that owns and operates several oil blocks and gas fields and other critical downstream oil infrastructure in the Niger Delta.
Rep Adu listed the expected roles of the oil corporation to include providing a reliable source of income for the federation as well as developing and enhancing local capacity and technology transfer for sustainable development and profitability.
The NPDC, he submitted, unfortunately, has failed the nation in this respect as it is still wobbling and fumbling 29 years after its establishment. Rep Adu revealed that the oil major was still far behind in providing the needed technical expertise it should by now be leading in the country. The evidence of the oil company failure is seen in her deliberate effort to cede and assign her technical role to 3rd party agents who have been discovered to be the cronies and agents of some of its senior personnel.
Rep Abu further revealed that a cursory look at the operations of the NPDC shows a disturbing trend which is contrary to laid procedures and process in strategic alliance agreements with third parties especially as it concerns the issue of funding joint partnership.
The effect of these infractions by the oil major has resulted in her inability to reconcile her expected revenue that should have been generated, and the amount of crude oil lifted which is speculated to have resulted in the loss of over $1.5 billion dollars income.
Ahmed Abu who raised the accusations against the oil company listed the sins of the company to include using newly registered companies that lacked the technical and financial capacity to execute contracts which they are not qualified to do contrary to the strategic alliance agreement.
The NPDC was also accused of inflating its recurring expenditure operation thereby defrauding the Nigerian Government of several billions of dollars.
Based on the weight of allegations leveled against the company, the Speaker of the House of Representative in his ruling referred the matter to the House committee on petroleum (upstream) for further investigation.