House of Representatives Demands Accountability for N10 Billion Spent on Failed NIPOST Subsidiaries

The House of Representatives has directed the Bureau for Public Enterprise (BPE) to account for the N10 billion expended on the failed subsidiaries of the Nigeria Postal Service (NIPOST).

Bamidele Salam, Chairman of the House Committee on Public Accounts, made the call on Monday in Abuja, stating, “No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies. These companies eventually folded up one year after takeoff.”

This directive comes months after the Senate ordered the recovery of the N10 billion released to NIPOST to kick-start the two subsidiaries, which were subsequently wound up.

In April, the Corporate Affairs Commission (CAC) invalidated the two subsidiaries due to allegations of irregular practices.

Imam Rilwan, BPE’s Head of Finance and Accounts, revealed that N10 million was given to the two companies for their takeoff, while N400 million was given to BPE to prepare for their launch.

Rilwan stated that the registration of the two companies was approved in 2017, leading to BPE expending N423 million on registration and other activities.

However, Salam criticized the spending of government funds before the money was released, citing a violation of the Public Procurement Act.

Salam directed BPE’s Director-General, Ayodeji Gbeleyi, to appear before the committee on September 11 with all relevant documents.

The committee is seeking transparency and accountability for the N10 billion spent on the failed subsidiaries.

Gbeleyi’s appearance before the committee is expected to shed light on the circumstances surrounding the expenditure.

The House of Representatives is determined to ensure that government funds are used judiciously and in accordance with the law.