Reps panel grill BPE executives over N10 Billion spent on failed NIPOST companies

The Public Accounts Committee of the House of Representatives has raised concerns over the Bureau for Public Enterprises (BPE) for allegedly squandering over N10 billion on the incorporation of two companies for the Nigeria Postal Service (NIPOST), which folded within a year.

At an investigative hearing on Monday, Committee Chairman Bamidele Salam questioned the BPE’s decision to spend N10.4 billion on NIPOST Transport and Logistics Limited and NIPOST Property, both of which were established in May 2023 but shut down by presidential directive in May 2024. Salam expressed disbelief that such a substantial sum was spent on companies that only operated for one year.

Imam Rilwan, representing the BPE Director General, explained that around N10 billion was allocated for the companies’ take-off, and approximately N400 million was used by BPE for preparatory work. He revealed that the companies’ assets have since been transferred to NIPOST management.

The committee also directed the Joint Admission and Matriculation Board (JAMB) and the Investment and Security Tribunal to remit N3.457 billion and N6.327 million, respectively, into the Consolidated Revenue Fund within 30 days and to provide proof of payment.

Salam further criticized the anticipatory spending by BPE before official approval, describing it as a breach of the Public Procurement Act, and expressed dissatisfaction with JAMB’s lack of response to letters from the Fiscal Responsibility Commission regarding liabilities.