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The House of Representatives has called on the Bureau for Public Enterprise (BPE) to provide a detailed account of approximately N10 billion allegedly spent on registering two companies for the Nigeria Postal Service (NIPOST). The call was made by Rep. Bamidele Salam, Chairman of the House Committee on Public Accounts, during a resumed investigative hearing in Abuja.
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Salam questioned the justification for such a significant expenditure, stating, “No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies, which eventually folded up one year after their launch.”
The two companies, NIPOST Transport and Logistics Ltd., and NIPOST Property, were reportedly launched in May 2023 but ceased operations by May 2024, following a Presidential directive.
Salam also revealed that N400 million was allocated to the BPE to facilitate the launch of the companies, which had been approved as early as 2017. However, the BPE’s Head of Finance and Accounts, who represented the Director-General of the Agency, Mr. Imam Rilwan, clarified that only N10 million was directly given to the companies for their startup, while the bureau spent N423 million on office rentals and other operational costs.
Rilwan further explained that the bureau paid rent for the companies as early as 2022, even though they only occupied the offices in May 2023. After the companies folded a year later, all assets were handed back to NIPOST management.
In response, Salam pointed out that spending government funds prior to their official release violated the Public Procurement Act. He directed the BPE’s Director-General, Ayodeji Gbeleyi, to personally appear before the committee on September 11, along with all pertinent documents related to the transaction.
This ongoing investigation raises concerns about the management of public funds and the operational integrity of government agencies.
