How Top Officials of Oil Company, NNPC Limited Engage In Massive Contracts Fraud, Multi-Billion Dollar Corruption

Details how top Officials of the oil company and NNPC Limited engaged in massive contracts fraud, multi-billion dollar corruption has emerged.

 

Newsonline reports that some top management staff of the Nigerian National Petroleum Company (NNPC) Limited have been accused of awarding fraudulent multi-billion dollar contracts without recourse to procedure and due process.

Leading the alleged corrupt acts according to some concerned Nigerians is Bala Wunti, the Group General Manager, National Petroleum Investment Management Services (NAPMS).

According to SaharaReporters sources, Wunti allegedly awarded different contracts in flagrant violation of the procurement processes and only to companies endorsed by him.

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Inside sources revealed that the NNPC boss is also known for frustrating oil development operations over his alleged greed and personal interest.

“Now that NNPC has transited into a public limited liability company saddled with the responsibilities of raising funds both locally and internationally with huge investors’ confidence, any atom of corruption cases, malpractices or fraudulent acts that are associated with the company will immensely affect NNPC Limited image and her functionalities,” the Association of Concerned Citizens said in a statement.

“This complaint is on the management of NNPC, now NNPC Ltd and specifically the current GGM of NAPIMS, Bala Wunti who over the years with the collaboration of his cohorts in both the multinational and indigenous oil company has been involved in defrauding the nation’s wealth through Inflating NAPIMS JV Cash Call Budgets.

 

“Affiliations and Profit Sharing with some certain oil servicing companies and multinational oil companies with the collaboration of some certain individuals in these companies. Bullying contractors and operators (mainly the indigenous off company). Frustrating oil development operations due to his greed and personal interest. Total disregard for rules and due process in contracting processes etc.

“Falsifying documents to conceal bribery payments. Fraudulently mischaracterizing bribes as normal business expenses. • Overbilling with an understanding that some of the payment is a bribe; and Inappropriate hiring practices, such as issuing contracts or hiring candidates solely based on referrals by government officials.

Amidst the various indecent and corrupt practices being perpetuated by the GGM NAPIMS in the person of Mr. Bala Wunti and his cohorts in the operating oil companies, is the continual decrease in Nigeria’s oil production which could be partly linked to his greed and style of managing his office.

“We understand that some certain personalities in NNPC top management are well protected by this current administration, most especially Bala Wunti who is being referred to as the “most powerful man currently in NNPC”. He is a man who commands his protection by providing funds got from his criminal acts to his protectors in the corridors of power.

However, there is evidence that would be provided at the appropriate time to prove our claims for the prosecution of all involved.
“We would want to mention some of the illegal and criminally minded acts being carried out by the GGM.

The list is not exhaustive though: Investigations show that Bala Wunti and his cohorts in the operating companies are engaged in fraudulently inflating the yearly JV cash call budgets to cover their share/interest and once the funds are made available by the Federal Government & JV Partners, their shares are split accordingly as agreed. This is usually done with JV companies like Eroton, Alteo, Belema oil etc. This we believe is a big fraud on the nation and her citizens. A Forensic Audit can be triggered to investigate a possible financial reporting misconduct on this complaint.

“There are reported cases of inflating the cost of the crude handling charge for every barrel of oil that is barged in our troubled oil-producing regions.

This is included in the JV budget. Investigation shows that a specific amount (about $4/bbl) is being added to the actual handling cost that is provided in the budget to cover Bala Wunti and his cohort’s interest/share. Again, their interest is sorted out once the funds are made available. JV companies involved in this are Eroton, AITEO, Belema oil, etc.

A Forensic Audit can be triggered to investigate a possible financial reporting misconduct on this complaint. Furthermore, it is very disturbing that Bala Wunti is seemed to be involved in profit sharing with certain service providers which he uses to inflate project rates.

“Most worrisome is his aggressive involvement and bullying nature in ensuring contracts are awarded to certain companies with which we believe he has affiliations.

This is raising a lot of concerns in the industry including to the best of our knowledge NAPIMS and it is not surprising some of the multinationals and indigenous oil companies have refused to raise alarms about Bala Wunti’s involvement with certain servicing companies. The most favoured in the list of companies is the company named TIREX Petroleum and Energy Limited.

A lot of questions are being asked on what “is the affiliation between this company (who is under the cover of another company known as STILL EARTH) and the GGM of NAPIMS. TIREX Petroleum and Energy Limited company was incorporated in the year 2020 and coincidentally about the same time Bala Wunti was appointed the GGM of NAPIMS.

A very interesting coincidence indeed. A set-up that seems to be for the sole purpose of diverting projects to TIREX. Bala’s dealings with TIREX have predominantly been around the Drilling project but the company recently added additional product codes on the NIPEX portal to take advantage of Bala’s influence in diverting other non-drilling related projects to her.

A company that has never ever participated in any competitive tender since it was established but has been gracefully awarded several contracts that resulted from the forceful and bullying act of the GGM NAPIMS

“The former Managing Director, John Musa resigned to protect his integrity as the illegality of Bala and Tirex became unbearable for him. Also worthy of note is that the USA and the United Kingdom can investigate the involvement of any companies with a link to the States and the UK and in the process indict any citizen of Nigeria with the possible extradition request.”

They called on President Muhammadu Buhari, NNPC GMD to investigate Wunti.