NNPC distances Kyari from claims of receiving gratuity worth billions of naira while in service

From Abubakar Yunusa ABUJA

The Nigerian National Petroleum Company (NNPC) Limited said claims that Mele Kyari, group chief executive officer (GCEO), and Umar Ajiya, chief financial officer (CFO), are receiving gratuity worth billions of naira while in service are false.
On Wednesday, a report said Kyari and Ajiya paid themselves billions of naira as gratuity despite still in service over fears of being retired compulsorily by the incoming administration of Bola Tinubu, the president-elect.
Some other top officials of the NNPC were also said to have been paid.
According to the report, most of the staff were displeased with the way the corporation was being managed by Kyari.
“He and Umar Ajiya are running the company like their personal fiefdom; our morale is down at the moment. We are calling on President Buhari to constitute a committee to investigate the massive corruption being perpetuated by Kyari and Ajiya,” the report reads.
In a counter statement, Garbadeen Muhammad, NNPC spokesperson, described the report as false and malicious.
Muhammad noted that based on the provisions of the Petroleum Industry Act (PIA), the new tenured roles Kyari and Ajiya assumed with NNPC Limited cannot be regarded as a continuance of their previous positions in the defunct corporation.
He said the termination of their previous roles entitled them to gratuity benefits while they served in different positions under the new NNPC.
“Our attention is drawn to the malicious publication by Sahara Reporters alleging inappropriateness of the disengagement of the GMD, Mallam Mele Kyari, and GED F&A, Mr Umar Ajiya from the services of the old corporation and their subsequent appointment by Mr President to commence a new tenure as Group CEO and CFO in the new NNPC Limited,” the statement reads.
“The general public may recall 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 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 Board of Directors by Mr. President.
“The PIA 2021 is deliberate about the long-term sustainability of the 20 years 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 16 September 2021 has ended their employment with the Corporation, and are thus entitled to their terminal benefits in respect thereof.
“Based on the provisions of the Act, the new tenured roles they assumed with NNPC Limited cannot be regarded as a continuance of their previous positions in the defunct Corporation.”
Muhammad asked the public to disregard the claims adding that the NNPC does not pay gratuity in billions.
He said the group CEO and CFO demonstrated patriotism by ending their career appointments with the corporation to serve the nation on five years tenured appointment in NNPC Limited.
The NNPC spokesperson said the company would take necessary legal steps to seek redress.