……Says Kyari, Ajiya’s Appointments In Line With PIA
The Nigerian National Petroleum Company Limited (NNPCL) has defended the gratuities paid to the Group Managing Director, Mele Kyari, and Group Executive Director, Finance and Accounts, Umar Ajiya, within the old corporation, saying they were within the provisions of the Petroleum Industry Act (PIA) and appropriate government circular.
The NNPC Limited said the Group Managing Director and Group Executive Director F&A careers with the old Nigerian National Petroleum Corporation (NNPC) ended in line with the provisions of the PIA and the appropriate government circular.
In a statement issued by the NNPC, which was signed by Chief Corporate Communications Officer of the NNPC Limited, Garba Deen Muhammad, the company recalled the passage of the Petroleum Industry Act and the successful transition of the Nigerian National Petroleum Corporation to a commercially driven national energy company, the NNPC Limited.
The National Oil Company’s Corporate Communications Officer said the PIA 2021 has, in addition to the creation of NNPC Limited, made clear and unambiguous provisions relating to governance, administration, and the appointment of a chief executive officer (CEO), a chief financial officer (CFO), and a board of directors by the president.
The statement reads in part, “The PIA 2021 is deliberate about the long-term sustainability of the 20-year-long petroleum industry reform that climaxed in the creation of NNPC Limited as a commercially driven National Energy Company with a focus on sustainable value creation.
“Pursuant to the provisions of the Act, the appointment of the CEO and CFO of NNPC Limited by the President of the Federal Republic of Nigeria is on the basis of distinct terms and conditions of service, including tenure, employment benefits, and termination.
“The appointment of CEO and CFO is not a career posting, as erroneously presented by Sahara Reporters.
“Specifically, Section 59(3) of the PIA 2021 has clearly stipulated the conditions to be considered in appointing the CEO and CFO of NNPC Limited without recourse to previous employment ranks in the Corporation. The previous rank of GMD or GED F&A was therefore not a consideration in the appointment of the CEO or CFO of NNPC Limited.
“Consequently, by virtue of the appointments of Mallam Mele Kyari and Mr. Umar Ajiya as NNPC Limited Group CEO and CFO, respectively, by Mr. President for a tenure of five years each with effect from September 16, 2021, their employment with the Corporation has ended and they are thus entitled to their terminal benefits in respect thereof.”
The statement stated further that, based on the provisions of the Act, the new tenured roles they assumed with NNPC Ltd cannot be regarded as continuations of their previous positions in the defunct corporation.
It added, “For further clarity on the misrepresentation of facts by Sahara Reporters, the Circular issued by the Head of the Civil Service of the Federation, dated July 27, 2009, has explicitly stated that appointments as Chief Executives of Government-Owned Companies are “tenured appointments”, and in respect of such tenured appointments, career officers who wish to take up such appointments shall retire from service in order to run their tenure uninterrupted.
“The circular recognizes a distinction between a tenured appointment to serve as Chief Executive of a government-owned company, as distinct from a career office.
“Public service rules require the termination of any fixed-career appointment to take up a tenured role.
“It is therefore our belief that the informed general public will disregard the misinformation and misrepresentation of facts published by Sahara Reporters.”
“NNPC compensation does not pay gratuity into the billions, and we are a compliant organization that is committed to delivering greater value to Nigerians in strict compliance with extant laws and circulars.”
The statement said the Group CEO and the CFO have demonstrated patriotism by ending their career appointments with the Corporation to serve the nation on a five-year tenured appointment in NNPC Limited.
“The general public is therefore advised to disregard the spurious and malicious publications while the company will take necessary legal steps to seek redress,” the statement concluded.
