Court orders firm to refund $1.6b to NNPC subsidiary

An arbitration court has directed on Atlantic company to pay $1.6billion to a subsidiary of the Nigerian National Petroleum Corporation (NNPC), the Nigerian Petroleum Development Company (NPDC) that was fleecing it.

The Group Managing Director, Dr. Maikanti Baru, broke the news to reporters in Abuja.

He added that NNPC has been able to settle out of court with IPCO (Nig) Ltd for a payment of about $37.7million instead of the $400 million the firm was demanding from NNPC.

He described the achievements as part of the gains from the NNPC anti-corruption measures and activities.

The NNPC chief spoke after the Charted Institute of Forensic and Investigative Professionals of Nigeria (CIFIPN) conferred its honorary fellowship award on him in Abuja.

Baru told reporters: “Recently, due to the work we were able to give the Atlantic Companies that were fleecing NNPC subsidiary NPDC.

“We got an award for them to refund $1.6billion to NPDC following the arbitration process. So, this is just one.

“We have also been able to stem some high profile court cases that were sort of proven to defraud NNPC. So, these are activities are part are related to fighting corruption. If you see the amount of money involved. If you don’t have people who are standing for anti-corruption your chances are compromised.

“We have had cases, for example, NNPC versus Ipco, where they are demanding over $400million.

“But because of the activities we are able to settle out of court with them for $37.7million, which is saving of over several percentages, certainly less than 10% of the demand. These are activities which the investigation of fraud.”

Baru said that NNPC has made a lot of progress in terms of fraud prevention, protection and control because it is better to prevent fraud.

He said that while serving as part of the anti-corruption committee, they were able to ensure all staff of the corporation know the correct processes, components of corruption and the punishment.

The institute’s protem president, Dr. Victoria Emape, who conferred the award on him, also said that the institute has adopted him as its patron.

Baru described the conferment of the award on him as a laudable gesture that would inspire him to give the necessary support to institute and domesticate it in the NNPC.

He vowed to help present the bill for the establishment of the institute to the 8th National Assembly and also work hard to realize its passage into law before the end of the current legislative circle.

Enape said: “Our institute has watched you (Baru) with keen interest since your assumption of office.

“We are here to sincerely appreciate you for being a champion of anti-corruption in NNPC, especially being a former chairman of anti-corruption committee and now the Chief Executive of NNPC.”