The House of Representatives has called on the Bureau of Public Enterprises, BPE, to account for the alleged N10.4 billion used to establish two now-defunct companies for the Nigeria Postal Service, NIPOST.
The companies, NIPOST Transport and Logistics Ltd. and NIPOST Property, were set up in May 2023 but shut down a year later following a Presidential directive.
Bamidele Salam, Chairman of the House Committee on Public Accounts, raised concerns during an investigative hearing in Abuja, questioning the massive expenditure. “No reasonable Nigerian will believe that N10.4 billion was spent just to register two companies that folded up after a year,” Salam stated.
BPE’s Head of Finance and Accounts, Imam Rilwan, who represented the Director-General, explained that the bureau used N423 million of the funds for various expenses, including office rentals and preparation for the companies’ operations. He explained that N10 million was given to the companies for their takeoff, while N400 million was allocated to BPE to cover preliminary expenses.
READ ALSO : CAC revokes certificate of NIPOST subsidiaries over illegal financial transactions
Rilwan further disclosed that the companies’ registration had been approved in 2017, but the funds were only released in 2023, after which BPE sought to recover its expenditures. The companies occupied their offices in May 2023, but their closure a year later resulted in the return of their assets to NIPOST.
Salam, however, criticized the BPE for spending government funds prior to their release, deeming the move a violation of the Public Procurement Act. He directed BPE Director-General Ayodeji Gbeleyi to appear before the committee on September 11, with all documents related to the transaction.
In 2021, the federal government initiated a major restructuring of NIPOST aiming to split it into three distinct and sustainable subsidiaries: a property management company, a microfinance bank, and a transport and logistics firm. This restructuring was kick-started in May 2023 with an allocation of N10 billion in initial capital from the Ministry of Finance.
A detailed breakdown of the funds, as per a Government Integrated Financial Management System document from the Office of the Accountant General of the Federation, disclosed that NIPOST received N600 million, NIPOST Transport & Logistics Services Ltd. was allocated N5.5 billion, NIPOST Properties & Development Company Ltd. received N3.5 billion, and a contingency fund for BPE was granted N400 million.
However, concerns arose when it was discovered that key individuals had significant ownership stakes in these government entities. Records from the Corporate Affairs Commission, CAC, as of November 8, 2023, showed that prominent figures such as Alex Okoh, Director-General of BPE, and Alex Adeyemi, a deputy director in the Office of the Accountant General of the Federation, each held one million shares. Additionally, Yahaya Maimuna, Chairperson of the NIPOST Board of Directors, was found to have a substantial controlling interest with a total of eight million shares in the subsidiaries.
In response to these revelations, the Senate passed Resolution No 54 on December 30, 2023, urging anti-graft agencies to investigate the subsidiaries for potential misconduct. Following this resolution, the CAC took action in April, invalidating the incorporation certificates of two NIPOST subsidiaries due to irregular procurement practices. These entities were deemed to have been established through improper methods, leading to the revocation of their registration.
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