Reps instruct BPE to account for N10bn spent on company registrations
The House of Representatives has urged the Bureau of Public Enterprises (BPE) to account for approximately N10 billion allegedly used to register two companies for the Nigeria Postal Service (NIPOST).
Rep. Bamidele Salam, Chairman of the House Committee on Public Accounts, made the call in Abuja during the resumed investigative hearing of the committee.
“No reasonable Nigerian would believe that N10.4 billion was spent to register the two companies.
“These companies eventually folded up one year after their launch,” he said.
He also noted that the companies, NIPOST Transport and Logistics Ltd. and NIPOST Property, reportedly began operations in May 2023 and ceased operations by a Presidential directive in May 2024.
The BPE Head of Finance and Accounts, who stood in for the Director-General of the Agency, Mr. Imam Rilwan, told the committee that out of the said amount, N10 million was allocated to the two companies for their launch.
He stated that approximately N400 million was allocated to the BPE to prepare for the companies’ launch.
He also mentioned that the registration of the two companies for NIPOST was approved in 2017. This decision led the BPE to spend about N423 million on registration and other activities required for the companies’ eventual start-up.
He added that when the funds were finally released in 2023, the bureau had to recover its expenses, noting that the N423 million was used for office rent and other essential services. Although the bureau paid rent for the two companies starting in 2022, the companies took possession of the offices in May 2023 and ceased operations in May 2024.
He reported that all property belonging to the two companies had been officially handed over to NIPOST management.
In response, Salam stated that spending government funds before the release of the money violated the Public Procurement Act. He directed the Director-General of the BPE, Ayodeji Gbeleyi, to personally appear before the committee on September 11 at 12 noon with all relevant documents related to the transaction.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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