The Bureau for Public Enterprise (BPE) has been ordered to account for about N10 billion spent on the failed subsidiaries of the Nigeria Postal Service (NIPOST).
Chairman, The House of Representatives Committee on Public Accounts, gave the order on Monday in Abuja at the resumed investigative hearing of the committee.
The Chairman of the committee, Bamidele Salam, said “No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies, adding that “these companies eventually folded up one year after takeoff,” he said.
This came months after the Senate ordered the recovery of the N10 billion released to NIPOST to kick-start the two subsidiaries.
Salam said the companies NIPOST Transport and Logistics Ltd. and NIPOST Property reportedly took off in May 2023 and folded up through a Presidential directive in May 2024.
BPE’s Head of Finance and Accounts, Imam Rilwan, who represented the Director-General of the Agency Ayodeji Gbeleyi, told the House committee on Monday that of the said amount, N10 million was given to the two companies for their take off.
He said about N400 million was given to the BPE to prepare the ground for the takeoff of the companies, adding that registering the two companies for NIPOST was approved in 2017.
This, he said, paved the way for BPE to expend about N423 million in registering and carrying out other activities for the eventual takeoff of the companies.
He said when the money was eventually released in 2023 the bureau had to recover its money, adding that the N423 million given to the BPE was used to rent office accommodation among other essential services.
He said while the bureau paid rent for the two companies from 2022, the companies took possession of the offices in May 2023, while they folded up in May 2024.
He said all property belonging to the two companies had been officially handed over to NIPOST management.
The Senate subsequently ordered the winding up of the subsidiaries.
In April, the Corporate Affairs Commission (CAC) invalidated the two subsidiaries on allegations of irregular practices.
