Reps Committee Orders BPE to Account for N10bn Spent on NIPOST Companies

By Comfort Olayinka

The House of Representatives Committee on Public Accounts has accused the Bureau for Public Enterprise (BPE) of wasting N10 billion in public funds to register two companies for the Nigeria Postal Service, which folded up within a year.

The companies, NIPOST Transport and Logistics Limited and NIPOST Property, were launched in May 2023 and shut down in May 2024 via a Presidential directive.

The committee Chairman, Hon Bamidele Salam made this declaration on Monday during an investigative hearing into the audit queries issued against the Bureau by the office of the Auditor General of the Federation.

Bamidele expressed disbelief at the expenditure, stating that it is unbelievable that N10.4 billion was spent to register the companies only for them to cease operations within a year.

The BPE Head of Finance and Accounts, Imam Rilwan, defended the expenditure, stating that N423 million was spent on registering the companies and carrying out other activities, while N400 million was allocated to BPE for preparation.

“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.

“All property belonging to the two Companies have been officially handed over to NIPOST management.

However,Hon Salam directed the BPE Director General, Ayodeji Gbeleyi, to appear before the committee on September 11 at 12pm with all relevant documents, citing a violation of the Public Procurement Act.

“However, spending money from the Government coffers before the money is released is a clear violation of the provisions of the Public Procurement Act”

The chairman of the committee expressed displeasure at the development, stating that the committee would get to the bottom of the matter. He directed Gbeleyi to come prepared to answer questions on the expenditure.