Reps probe $24m vessel overhaul contracts
By John Ameh, Abuja PUNCH | Apr.29.2009

The House of Representatives has begun a fresh probe into suspected irregularities in the award of multi-million dollar contracts for the repair of one of Nigeria ‘s major oil storage vessels, MT Tuma.

Investigations on Tuesday showed that the Nigeria National Petroleum Corporation awarded a $24m contract to ‘‘dry dock‘‘ the 136,000 metric tonne vessel in December 2007.

A Brazilian firm, Sermetal Estaleros Ltda, won the dry dock contract to conduct engineering repairs and overhauling on the ship. Two other separate contracts namely, ‘‘Manning contract for MT Tuma‘‘ and ‘‘Consulting contract for MT Tuma,” were also awarded by the corporation, but the financial implications were unclear.

The House Committee on Public Procurement has queried the three contracts. Our correspondent gathered that the committee, headed by Alhaji Yusuf Tuggar, had summoned the Group Managing Director of the NNPC, Mr. Mohammed Barkindo, to appear before it and clarity the alleged ‘‘irregularities‘‘ in the contracts.

Barkindo is scheduled to appear before the committee on today at the National Assembly. Investigations revealed that under the terms of the agreement for the dry dock contract, the Brazilian firm was expected to complete the repairs and return the vessel to Nigeria within 12 months, effective from December 16, 2007.

An NNPC source however told our correspondent on Tuesday that five months after the expiration the agreed date, MT Tuma had not returned to Nigeria. A National Assembly source also alluded to ‘‘breaches in the milestones‘‘ set for the payment of the $24m to the contractor.

”What is puzzling is that while the ship has not returned to Nigeria within the contractual period, the money has been paid and the corporation appears to be planning to pay more. ”Has the vessel been detained in Brazil ? The contract agreement states categorically that if it is not executed within 12 months, NNPC will immediately revoke the contract.

‘‘Why did they not revoke the contract when they realised the breach?‘‘, the source said.

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