The House of Representatives Committee on Public Accounts has accused the Bureau for Public Enterprise (BPE) of wasting N10 billion on registering two companies for the Nigeria Postal Service, only for them to fold up a year later.
The companies, NIPOST Transport and Logistics Limited and NIPOST Property, took off in May 2023 and folded up in May 2024 due to a Presidential directive.
The Committee has directed the BPE to provide evidence of payment and justification for the expenditure, which they deemed a clear violation of the Public Procurement Act.
The Committee’s Chairman, Bamidele Salam, expressed disappointment and concern over the BPE’s actions, stating that no reasonable Nigerian would believe that N10.4 billion was spent to register the two companies, only for them to fold up barely a year after.
The BPE’s Head of Finance and Accounts, Imam Rilwan, attempted to justify the expenditure, explaining that the funds were used to rent office accommodation and carry out other essential services.
However, the Committee was not satisfied with his explanation and demanded further clarification.
Salam emphasized that the Committee would not tolerate such reckless spending, especially when many Nigerians are struggling to make ends meet.
He noted that the BPE’s actions were a slap in the face of Nigerians who are expecting accountability and transparency from government agencies.
The Committee also questioned the BPE’s decision to spend N423 million on registering the companies, despite knowing that the funds were not approved.
The BPE’s representative, Imam Rilwan, claimed that the expenditure was necessary to prepare the ground for the takeoff of the companies.
However, the Committee was not convinced, citing the lack of due process and transparency in the transaction.
The Committee thereafter summoned the Director General of BPE to appear before it on Wednesday, September 11, with all relevant documents relating to the transaction.
Oduyemi Odumade, Edited By Shakira Alabi
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