HOW NNPC LOST 70 MIL DOLLARS TO SENIOR STAFF DURING YAR ADUA, JONATHAN ERA

A report by Premium Times has detailed how the NNPC has, again, invited fresh bids for its failed enterprise.

Dr Maikanti Baru, NNPC boss

The enterprise is meant to deepen accountability, but has been a conduit pipe for embelzzement according to the report.

The Systems, Applications, Products (SAP)enterprise resources planning system is an electronic management solution initiated by the Obasanjo administration to monitor real-time operation of a network of NNPC subsidiaries and affiliates irrespective of their locations.

It is mostly deployed by global organisations to link their network of subsidiaries and units scattered in various locations, for easy monitoring of their operations and activities.

But, NNPC’s implementation of the system since 2009 became a cash cow for corrupt elements within the corporation.

Rather than an integrated system connecting all the corporation’s operational units, subsidiaries and affiliates, irrespective of location, the officials operated independent silos, without any connectivity.

An implementation review report by NNPC’s corporate audit department in February 2015 revealed how the system became a drain pipe that gulped almost double the amount originally approved for its implementation.

Although the project was approved by former President Musa Yar’adua for about $36.75 million, the report said financial records revealed disbursements by NNPC, as at January 2015, to be about $70.66 million, excluding additional €6.06 million and N820.089 million for other expenses.

The implementation of SAP project was never achieved despite the huge amount spent.

Minister of petroleum resources said the project had to be reviewed and key personnel removed, because its implementation failed to meet set corporate objectives and targets.

His words: “There was nothing wrong with the SAP initiative. It remains a fantastic idea. But, I must say its implementation had issues we are trying to fix, because it failed to meet our corporate objectives and targets.

“That is why we had to review the project and remove those personnel who were in charge and replace them with new ones. I assure you we will fix it.”

Recently, the NNPC issued an advert on its website inviting tenders for the provision of consolidated SAP support service to the system it has been using for its human resources, logistics, industry solution, finance and payroll system.

The publication was for SAP technology companies with the capacity to provide functional and technical support services on the entire NNPC SAP landscape, including maturity build, business process optimization and capacity development.

The services also cover organisational change and value management, license management and optimization, help desk assistance, corrective maintenance and enhancements/configuration changes.

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