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CAC revokes certificates of NIPOST subsidiaries

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CAC revokes certificates of NIPOST subsidiaries

The Corporate Affairs Commission, CAC , has revoked the certificates of incorporation of two subsidiaries of the Nigerian Postal Service, NIPOST, following discovery of illegal transfer of N10 billion.

The affected entities are, NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited.

The CAC in a statement in Abuja, stated that the revocation followed the discovery of an illegal transfer of N10 billion in restructuring funds released by the Federal Ministry of Finance to the NIPOST subsidiaries.

The CAC further explained that the revocation was sequel to its statutory powers in discovery that the certificates of incorporation of the two subsidiaries were not properly procured in accordance with the legal provisions.

READ ALSO: Senate moves to privatise NIPOST over low revenue generation

It will be recalled that the Senate had in November, 2023, passed a resolutions for a comprehensive probe into the activities of the two subsidiaries following reports that some top officials of NIPOST and the Bureau for Public Enterprises, BPE, held significant shares in them.

The Senate resolution which declared the two subsidiaries as “irregular and illegal”, recommended their immediate winding-up and deregistration by the CAC.

The Senate resolution had also demanded a thorough investigation into the N10 billion voted by the Ministry of Finance for NIPOST’s restructuring and recapitalisation adding that, full recovery of the amount must be made, “should evidence of injudicious utilisation” be uncovered.

“By virtue of these revocations”, according to the CAC statement, “the two companies are deemed to be dissolved and their Assets and Liabilities transferred to the Nigeria Postal Services established under the Nigerian Postal Services Act.”

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