Fraud, Compromise Trail NAPIMS Bidding Processes

* Logo source: Aziza


…As Officials Delay NipeX Processes, Introduces ‘Stop Gap’ Measures

…Allegedly Uses Stop Gap To Award Contracts To Cronies, Portfolio Contractors

…Stop Gap  Window Of Corruption—Media Advocacy Group


There are indications that all may not be well at the National Petroleum Investment Management Services (NAPIMS), as Nigerian Petroleum Exchange (NipeX), as the electronic one-stop transaction centre that improves on value procurement in the oil and gas industry and institutionalise world-class contracting processes in the Upstream sector of the Oil and Gas industry in Nigeria has been allegedly compromised and abused by some officials of the agency.

NipeX is also a Division of NAPIMS.

As a result of this, portfolio investors, who know next to nothing about the industry, are now getting contracts while the original contractors, who are on the data base of NipeX, who knows the job and have the wherewithal are denied contracts. learnt that this fraudulent act has been going on for a very long time but has become more pronounced and some officials are flouting the rules as provided for by NipeX are carrying on with impunity.

NAPIMS is a Corporate Services Unit (CSU) in the Exploration and Production (E&P) Directorate of the NNPC charged with the responsibility of managing Nigeria government’s investment in the Upstream sector of the Oil and Gas industry.

While NipeX is an electronic one-stop transaction centre that improves on value procurement in the oil and gas industry and institutionalize world-class contracting processes in Nigeria.

Speaking to journalists on the development, the Director General Network on Anti Corruption Practices in the Oil industry, Mr Frank Meke, said that instead of adhering strictly to the rules provided for by NipeX as it concerns bidding for contracts and selecting contractors, some official of NAPIMS have allegedly introduced a stop gap measures to bring in their own cronies and next of kin under the guise that they are genuine contractors.

Network on Anti Corruption Practices in the Oil industry is a media advocacy group.

Meke alleged that the stop gap measures is a window for corruption and fraud and that it is an avenue to bring in unqualified people that will give them bribe, there sidelining the competent contractors.

He added that government intention for creating NipeX was to stop people, who don’t have the competence from getting contracts in the Upstream sector but that the process for securing contracts at NAPIMS has been thoroughly abused and that officials of NAPIMS have allegedly compromised the system.

Speaking further, the DG alleged that officials at NAPIMS intentionally create delay in the NipeX process so as to subvert the system and bring in their cronies and well-wishers.

To buttress his point,  he alleged that the General Manager, Materials, Musa Lawan is coordinating the illegal activity .

He also alleged that the GM go as far as threatening the International Oil Companies(IOC) to cooperate else he would not approved their contracts, claiming to have the ears of the Group Managing Director(GMD) of the Nigerian National Petroleum Corporation(NNPC).

The IOC, he stated had no choice but to succumb to the whims and caprices of the GM, as he often times allegedly drops the GMD’s name.

Meke disclosed that presently there are bidding processes going on and that all the participants have submitted their bids but that instead of concluding these processes, the officials of NAPIMS are allegedly putting up a fraudulent stop gap measures to bring in portfolio investors and contractors to detriment of the genuine contractors.

According to him, “Why are the officials not going ahead with the original process that is already on? The illegal stop gap is frustrating a lot of genuine contractors. Some of these contractors have taken loans from banks and these banks are breathing down their necks to pay back the loans.

To further buttress his point, he listed the companies that have bided for contracts presently to include: NNPCREtail, Ponnit Oilservices, Höme land integrated, Logiscon integrated,Nemera Oil Services, Bellpoint, Punnf Oil Services and  Niger Pet Limited.

Others are :Joint Stock,Total Nigeria, Aira Integrated, Linksman oil,Hyde Energy,Comwell Energy,Anosyke Group,Skyshore,GMT,Cepsadeen,Zaif Petro, Davfub Nigeria, Propel Nigeria and Prime Sources.

Meke stated that several petitions have been written to the Group General Manager on the matter but that the issue of the illegal stop gap, which according encourage corruption was not addressed.

Lamenting, Meke said, “The funniest thing is that most of the people they give these contracts to portfolio contractors who later sell the contract to the genuine contractors.”

He continued, “These officials ignore the name of the contractors in the NipeX data base and bring in unqualified contractors who are their cronies .it is an abuse of process. IOC’s are accomplices .This illegal and fraudulent act has been on for a very long time but it has come to climax. Besides, this against the sermon of the Ease of Doing Business preached by the Federal Government. The abuse of the NipeX process by extension is affecting the Nigerian people.”

On the online bidding process as provided for by NipeX, Meke said that though no process is perfect but that of NipeX allows  contractors that are not resident in Nigeria, who does not have staff ,with no physical office address to bid for contracts without background checks on them.

Attempts to reach the GM materials, Musa Lawal, proved abortive as he could not be reached as at the time of filing this report.



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